Agenda

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Declarations of Interest under the Municipal Conflict of Interest Act

Confirmation of Minutes - May 9, 2024

Speakers/Presentations: The speakers list will be posted online at 8:30 a.m. on June 13, 2024

Communications/Reports

City Council on October 11 and 12, 2023, referred Item PH6.3 back to the Planning and Housing Committee. 

Summary from the report (September 14,2023) from the Chief Planner and Executive Director, City Planning on Our Plan Toronto: Recommendations on the East Harbour Employment Area Conversion Request - Final Report:

This report is the fourth in a series of Final Reports that provide staff recommendations on Employment Area conversion requests as part of the Municipal Comprehensive Review (MCR) of the Official Plan.

Council authorized the commencement of the Municipal Comprehensive Review (MCR) and Growth Plan conformity exercise known as "Our Plan Toronto" on August 4, 2020. As part of the MCR, City Planning received approximately 150 requests to convert lands designated Core Employment Areas or General Employment Areas in the Official Plan for non-employment uses, including some of which were City-initiated.

The MCR and any recommended Official Plan amendments are considered under Section 26 of the Planning Act, where the Minister of Municipal Affairs and Housing is the approval authority. The Minister’s decisions are not subject to appeal to the Ontario Land Tribunal unless the Minister refers all or part of the amendments to the Tribunal.

This report is to be considered at a Special Public Meeting under Section 26 of the Planning Act regarding the City's phased Official Plan and Municipal Comprehensive Reviews.

This fourth report provides an overview of staff’s review and recommendations on the Employment Area conversion request made for the East Harbour lands (21 Don Valley Parkway, 30 Booth Avenue, and 375-385 Eastern Avenue). The report also describes the recommended Official Plan Amendment (OPA) 683 and the city-building objectives, such as affordable housing, that are included to support the introduction of residential use permissions.

In April 2021, the Province announced a Transit Oriented Communities (“TOC”) commercial partnership with Cadillac Fairview for the East Harbour lands that proposes a mixed-use community on the lands, which includes the 926,000 square metres of employment development previously approved in the Unilever Precinct Secondary Plan and relevant Zoning By-laws, but would also introduce residential uses not previously contemplated for the lands.

The residential uses envisioned for the TOC are not permitted on the lands which are designated Core and General Employment Areas in the Official Plan. In August 2021, Cadillac Fairview submitted an employment area conversion request for the lands to be considered as part of the City’s MCR.

On April 8, 2022, the Minister of Municipal Affairs and Housing made a Minister’s Zoning Order per Ontario Regulation 329/22 (‘MZO’) for the East Harbour lands. The MZO permits residential uses on specific portions of the East Harbour lands up to a maximum of 302,000 square metres, in addition to the existing employment development permissions.

The MZO allows for residential uses in the zoning permissions on lands designated Core Employment Areas and General Employment Areas. While the Growth Plan 2020 prohibits, and the City’s official plan policies do not permit, residential uses on lands designated Employment Areas, the Province’s MZO does not need to conform to these policies. The zoning permissions granted through the MZO for the East Harbour lands enable development contemplated in the Province’s TOC arrangement between the Province and Cadillac Fairview.

Staff’s recommendations on the East Harbour conversion request are to implement the MZO made for the lands by the Minister and the recommended Official Plan amendment detailed in this report aligns with the permissions granted by Province through the MZO.

The Interim Chief Planner and Executive Director recommends that:

1. City Council adopt Official Plan Amendment 683 substantially in accordance with Attachment 1 to the report from the Chief Planner and Executive Director, City Planning (dated September 14, 2023).

2. City Council authorize the Chief Planner and Executive Director, City Planning to seek approval of the Minister of Municipal Affairs and Housing of Official Plan Amendment 683 under Section 26 of the Planning Act.

3. City Council authorize the City Solicitor to make such stylistic and technical changes to the recommended Official Plan Amendment 683 as may be required.

4. City Council declare by resolution to the Minister of Municipal Affairs and Housing that Official Plan Amendment 683 conforms with Provincial Plans or does not conflict with them; has regard to the matters of Provincial Interest in Section 2 of the Planning Act; and is consistent with policy statements issued under subsection 3(1) of the Planning Act.

5. City Council request that the Minister of Municipal Affairs and Housing review OPA 683 under the current in-effect Provincial Policy Statement 2020 and Growth Plan for the Greater Golden Horseshoe 2020.

6. City Council request that the Minister of Municipal Affairs and Housing withhold any approval of OPA 683 until dual ministerial approval has been obtained from the Ministers of Municipal Affairs and Housing and Natural Resources and Forestry, consistent with the Provincial Policy Statement, 2020, and Lower Don Protocol, including amending Attachment 3 of the Lower Don Protocol to identify it as a Priority Project if necessary.

On October 26, 2023, the Planning and Housing Committee deferred consideration of Our Plan Toronto: Recommendations on the East Harbour Employment Area Conversion Request - Final Report (Item PH6.3). The Committee directed the Chief Planner and Executive Director, City Planning to report to a future meeting of the Planning and Housing Committee so that City Council considers the Decision Report on the employment area conversion at the same time as the East Harbour Transit Oriented Community report is considered.

Executive Committee will consider a report on the East Harbour Transit Oriented Community and Draft Plan of Subdivision Application at its meeting on June 18, 2024. This timing will allow City Council to consider both reports at its meeting of June 26-28, 2024.

The report recommendations listed in the September 14, 2023, report from the Chief Planner and Executive Director, City Planning on Our Plan Toronto: Recommendations on the East Harbour Employment Area Conversion Request - Final Report (Item PH6.3) are re-stated below for ease of reference. An additional recommendation has been added to address the Lower Don Special Policy Area (SPA) and Lower Don Protocol.

The financial implications resulting from the recommendations included in this report are set out in the Final Report dated September 14, 2023 (Item PH6.3).

The Interim Chief Planner and Executive Director, City Planning recommends that:

1. City Council amend the Official Plan for 2, 62, 65, 105, 155, 165, and 170 Villiers Street 16 Munitions Street; 39, 51, 54, 63, 75, 85, 95, 97, 99 and 130 Commissioners Street; 222, 238, 242, 256, 275, 281, 301, 309 and 312 Cherry Street, and 72 Polson Street, substantially in accordance with the draft Official Plan Amendment attached as Attachment 10 to this report.

2. City Council amend City of Toronto Zoning By-law 569-2013 for 2, 62, 65, 105, 155, 165, and 170 Villiers Street; 16 Munitions Street; 39, 51, 54, 63, 75, 85, 95, 97, 99 and 130 Commissioners Street; and 222, 238, 242, 256, 281, and 312 Cherry Street, and 72 Polson Street, substantially in accordance with the draft Zoning By-law Amendment attached as Attachment 11 to this report.

3. City Council amend Chapter 415 - Article III of the Toronto Municipal Code substantially in accordance with the draft By-law Amendment attached as Attachment 13 to this report.

4. City Council adopt the Villiers Island Precinct Plan 2024 Amendment, as described in Attachment 12 of this report.

5. City Council adopt the Villiers Island and Keating West Public Art Master Plan attached as Attachment 14.

6. City Council request that the Chief Planner and Executive Director, City Planning, together with Waterfront Toronto, CreateTO, and relevant Divisions, Agencies and Corporations:

a. Advance infrastructure and public realm design to align the Precinct Plan with the objectives of the City’s Reconciliation Action Plan, as well as the Villiers Island and Keating West Public Art Master Plan; and

b. Develop a “Meanwhile Use Strategy" and implementing guidelines to inform intermediate use proposals to activate and animate the development blocks prior to development. 

7. City Council authorize the City Solicitor to make such stylistic and technical changes to the draft Official Plan Amendment, draft Zoning By-law Amendment and draft Municipal Code amendment as may be required.

The City of Toronto, together with CreateTO and Waterfront Toronto, is advancing a significant revitalization project for the Port Lands. The Port Lands is being transformed into a dynamic, inclusive mixed-use community, with housing at all levels of affordability combined with supportive community infrastructure. It will also continue as an employment hub, bolstering the City’s film, television, and creative sectors, alongside sustained port and industrial activities.

The new Island, currently using the working name "Villiers Island" and receiving a  permanent Indigenous name in the Fall of 2024, will be the first mixed-use residential community emerging through this transformation; defined by the renaturalized Don River it will develop into a sustainable and complete community. The Island is part of Toronto's broader waterfront revitalization, building on two decades of a successful tri-government collaboration. This model has spurred long-term economic growth and prosperity by flood protecting and remediating contaminated land, and developing both market and affordable housing. Waterfront revitalization has also delivered award-winning parks, public spaces, and architectural advancements, all while setting higher standards in sustainable development. This approach attracts innovation-focused companies and enhances the waterfront's appeal as a destination for both Toronto residents and visitors.

Over a decade of planning and consultation has focused on the future development of the Island. In 2007, Waterfront Toronto held an urban design competition for the Lower Don Lands, which include the Island, resulting in Michael Van Valkenburgh Associates' (MMVA) winning design. In 2011, a refined plan proposed a slight realignment of the Don River and the river mouth. The 2010 Lower Don Lands Framework Plan envisioned four mixed-used residential communities that would be adjacent to the new Don River valley and mouth, connected by bridges.

As envisioned in the Lower Don Lands Framework Plan and the 2017 Villiers Island Precinct Plan (the "Precinct Plan"), the Island will be a central connection point for surrounding emerging waterfront precincts, and will have destination parks, a new naturalized Don River Valley, community facilities including a new neighbourhood library, and unique opportunities to experience the Keating Channel.

Eighty percent of the developable area on the Island is in public ownership (see Figure 2). The City, CreateTO and Waterfront Toronto have collaborated extensively to review the Precinct Plan and the density on public lands through a Density Study. The partnership sought to identify appropriate built form changes that could help contribute to the City’s ambitious housing and affordable housing goals. This comprehensive Density Study process was informed by a series of iterative design workshops, expert advice from professional planning and design consultants, due diligence studies, feedback from the Waterfront Design Review Panel, and the public feedback through consultations and focus groups.

This report recommends the approval of amendments to the Official Plan, Zoning By-law, and Precinct Plan that describe how the Island will develop, based upon the outcome of the Density Study. It also recommends an update to the Municipal Code regarding parkland dedication, and endorsement of the Villiers Island and Keating Channel West Public Art Master Plan. Taken together, these revisions update the planning framework for the Island in response to Toronto's Housing Action Plan, to permit a dense, inclusive, sustainable, and walkable urban community.

The proposed amendments contemplate towers with heights between 19 and 46 storeys, enabling an estimated 9,000 residential units and resulting in a net density of 7.7 times the area of the Island's development blocks (see Figure 1). Of the estimated 9,000 units, approximately 2,200 - 2,700 will be affordable housing, with a target of 30 percent affordable housing on public lands. These affordable units will be secured as long-term or permanently affordable housing aligned with the City's income-based definition of affordable housing. Achieving affordable housing will require an intergovernmental funding and financing strategy.

The amendments also permit a minimum of approximately 80,000 square metres of retail and office space, 7,850 square metres of community space, and a Toronto Public Library neighbourhood branch.

A Business and Implementation Plan for the first phase of development on the Island will be presented to City Council later this Fall or in early 2025. The Business and Implementation Plan will build on this report by outlining the proposed costs and funding strategies, implementation roles and responsibilities, and implementation milestones (including phased development and early activation) for this emerging Island community, ensuring the planned density and necessary infrastructure are coordinated for maximum benefit.

The redevelopment of the Island presents unique infrastructure challenges. Although close to the city, it requires replacing the existing infrastructure systems with contemporary ones, including stormwater management, water and wastewater systems. The public realm, established through the Don Mouth Naturalization and Port Lands Flood Protection Environmental Assessment, the Lower Don Lands Infrastructure Master Plan Environmental Assessment and the Precinct Plan, including the planned grid of streets, blocks, and open spaces, will support increased density through generous sidewalks, cycle tracks, green infrastructure elements and future transit connections.

Upon completion, the Island will house more than 15,000 residents, part of the larger Port Lands area, which is projected to be home to nearly 40,000 people and 20,000 jobs. The Island will also be a waterfront destination – its infrastructure and amenities will serve a local population, downtown, and the region. The revitalization of the Island and Toronto's waterfront will not only contribute to achieving provincial and federal housing targets, but also support the housing commitments in the City's housing plans.

Revitalizing the Port Lands is one of the largest and most complex city-building projects

in the City. The recommendations in this report will allow the City, CreateTO, and Waterfront Toronto to advance implementation plans to enable more affordable housing to be built faster. Building on the success of the Port Lands Flood Protection Project and a generation of planning for Port Lands revitalization; the report's actions will take the next crucial steps to transform a vast industrial and underutilized waterfront area into a vibrant, mixed-use community, important destination, home to tens of thousands of future resident amid a growing cluster of production, interactive and creative uses, and the hustle and bustle of a working port. 

The City Planning Division confirms that there are no financial implications resulting from the recommendations included in this report in the current budget year or in future years.

The Chief Financial Officer and Treasurer has reviewed this report and agrees with the financial impact information.

The Deputy City Manager, Development and Growth Services and the Interim Chief Planner and Executive Director, City Planning recommends that:

1. The Planning and Housing Committee receive this report for information.

This Supplementary Report responds to MM18.26, City Council's request to review key numbers and figures related to redevelopment of the new Island, currently known as Villiers Island. The report addresses questions related to maximizing of housing on the new Island, including the provision of affordable housing on non-City owned lands, heights and densities, development blocks, road rights-of-way and the public realm.

The City Planning Division confirms that the resources required to complete any current year activities associated with the Public Realm and Infrastructure Design Study, can be accommodated through the 2024 City Planning Division and Waterfront Revitalization Initiative Capital Budgets. Any additional financial impacts would need to be identified and submitted for consideration through future budget processes.

The Chief Financial Officer and Treasurer has reviewed this report and agrees with the financial impact information.

The Interim Chief Planner and Executive Director, City Planning recommends that:

1. City Council amend City of Toronto Zoning By-law 569-2013 for the lands at 2444 Eglinton Avenue East substantially in accordance with the draft Zoning By-law Amendment attached as Attachment 5 to this report.

2. City Council authorize the City Solicitor to make such stylistic and technical changes to the Zoning By-law Amendment as may be required.

This application proposes to amend the Zoning By-law for the lands at 2444 Eglinton Avenue East to permit the construction of a mixed use building consisting of 3 towers above a base building containing above grade parking and non-residential uses at grade.

The development would include a 31-storey condominium building above a 4 storey podium, along with two co-op buildings of 19  and 41-storeys atop a 5-storey podium. The two co-op buildings consist of 612 co-op housing units and the condominium building consists of 307 units. The tenure of the units includes, market condominium units (307), market co-op units (306) and affordable co-op units (306). The total gross floor area of the proposal is 64,143 square metres, inclusive of 1871 square meters of non-residential uses.

The proposed development is consistent with the Provincial Policy Statement (2020) and conforms with A Place to Grow: Growth Plan for the Greater Golden Horseshoe (2020). The proposed development also conforms to the City's Official Plan. The development is part of the City’s Housing Now Initiative to deliver affordable housing and mixed-income, mixed-use, transit-oriented communities on City-owned properties. This proposed development intensifies an underutilized site with a range of housing options in terms of tenure and affordability, while providing a mix of at-grade non-residential uses that will support and enhance the public realm. It is immediately adjacent to a multi-modal transit station with convenient connections to multiple transit lines and surface transit routes.

This report recommends approval of the application to amend the Zoning By-law  subject to a Holding Provision required to address servicing matters.

City Council has authorized Open Door incentives and exemption from taxation for municipal and school purposes for 99 years to be applied to up to 620 affordable units for Housing Now Phase Two Sites (2020 CC21.3) including 2444 Eglinton Avenue East. For 306 affordable rental units at 2444 Eglinton Avenue East, this includes exemption from the payment of development charges, a waiver of all planning application and building permit fees and parkland dedication fees ($15,018,266) and the exemption of municipal and school taxation over a 99-year term ($13,225,925) as shown in Table 1 for an estimated total of $28,244,192 based on current rates.

Table 1: Open Door Incentives and Exemption of Municipal and School Taxation for 2444 Eglinton Avenue East

*Calculated using May 2024 Development Charge rates

**Includes estimated January 2024 building permit fees of $374,739, January 2024 Planning Fees of $340,935, and parkland dedication fees of $4,590,000.

***Calculated using 2024 property tax rates

The Chief Financial Officer and Treasurer has reviewed this report and agrees with the information as presented in the Financial Impact Section.

The Interim Chief Planner and Executive Director, City Planning, recommends that:

1. Planning and Housing Committee direct the Chief Planner and Executive Director, City Planning, to consult stakeholders and the public on the proposed draft zoning by-law amendment and report back with the final recommended zoning by-law amendment in the third quarter of 2024.

2. Planning and Housing Committee direct the Chief Planner and Executive Director, City Planning, to incorporate the updated Rear Transition Performance Standards 5A and 5B for Mid-rise Buildings appended as Attachment 2 to this report in the draft consolidated Mid-Rise Building Urban Design Guidelines in the fourth quarter of 2024.

The City is advancing several initiatives under the Housing Action Plan and the Expanding Housing Options in Neighbourhoods (EHON) initiative to make changes to the City’s Official Plan, Zoning By-law and Urban Design Guidelines to enable more housing in neighbourhoods along major streets and Avenues, in transition zones and in major growth areas.

This report proposes amendments to the city-wide Zoning By-law 569-2013 to permit heights and densities that would enable mid-rise buildings on lands designated Mixed Use Areas in the Official Plan along Avenues. The draft zoning by-law amendment implements urban design performance standards, including updated standards for rear transition and increases height and density permissions. This report also provides an update on the Mid-rise Performance Standards Urban Design Guidelines with respect to rear transition.

The As-of-right Zoning for Mid-rise Buildings on Avenues proposal and updates to the Mid-rise Buildings Performance Standards are two of 54 initiatives under the Housing Action Plan. The proposed zoning by-law amendment and update to the Mid-rise Performance Standards Urban Design Guidelines with respect to rear transition would remove barriers, ease administration, and support the creation of more housing as part of the Housing Action Plan to achieve or exceed the provincial housing target of 285,000 new homes over the next 10 years.

Mid-rise buildings have heights generally no greater than the width of the right-of-way that the building fronts onto, up to 11 storeys. Mid-rise buildings are encouraged along Avenues designated Mixed Use Areas in the Official Plan, with their physical form and relationship to their context informed by the Mid-rise Building Performance Standards Urban Design Guidelines.

City Planning is conducting a comprehensive review of the Mid-Rise Building Performance Standards Urban Design Guidelines, and has completed initial updates to the performance standards for Rear Transitions between mid-rise buildings and other buildings or open space uses. This report summarizes the updated Rear Transition Performance Standards Urban Design Guidelines, which inform the proposed zoning by-law amendments to enable mid-rise buildings on Avenues. The final updated Rear Transition Performance Standards 5A and 5B will be formally incorporated in the consolidated Mid-rise Building Urban Design Guidelines document and presented to Planning and Housing Committee in the fourth quarter of 2024.

The as-of-right zoning for mid-rise buildings and updates to the Mid-Rise Building Rear Transition Performance Standards Urban Design Guidelines are only one of many actions in the Housing Action Plan that support the objective of enabling additional housing supply across Toronto’s Major Streets and Avenues. Other related action items include: the Expanding Housing Options in Neighbourhoods (EHON) Major Streets Study, As-of-Right Zoning for Avenue Studies with no Implementing Zoning, the Avenues Policy Review, Expanding Mixed Use Areas, and Implementing Zoning for new Mixed Use Areas. City Planning has either reported out on the actions such as the Major Streets Study or is working to advance these action items in a comprehensive and integrated manner.

City Planning confirms that there are no financial implications resulting from the recommendations included in this report in the current budget year or in future years.

The Chief Financial Officer and Treasurer has reviewed this report and agrees with the information as presented in the Financial Impact Section.

The Executive Director, Housing Secretariat, Executive Director, Corporate Real Estate Management and Chief Procurement Officer recommend that:

1. Planning and Housing Committee, in accordance with Section 71-11.1C of the City of Toronto Municipal Code Chapter 71 (Financial Control By-law), authorize the amendment of Purchase Order Number 6052027 issued to NRB Inc. for design-build services for the supportive housing building located at 175 Cummer Avenue, as set out in Confidential Attachment 1.

2. Planning and Housing Committee, in accordance with Section 71-11.1C of the City of Toronto Municipal Code Chapter 71 (Financial Control By-law), authorize the amendment of Purchase Order Number 6052881 issued to NRB Inc. for design-build services for the supportive housing building located at 39 Dundalk Drive, as set out in Confidential Attachment 1.

3. Planning and Housing Committee authorize the public release of Confidential Attachment 1 following the conclusion of negotiations and issuance of the Purchase Order Amendments referenced in the report.

4. Planning and Housing Committee authorize the public release of Confidential Attachment 2 following completion of the projects referenced in this report.

5. Planning and Housing Committee, authorize the award of contracts to NRB Inc. under the Request for Proposal No. 2020-053 for Modular Housing Design Build at 175 Cummer Avenue and 39 Dundalk Drive, in accordance with the requirements of the Request for Proposal Document and the CCDC-14 executed Agreements.

The purpose of this report is to provide an update on the Modular Housing Initiative Phase 2, and to request Council authority to enable City Divisions to restart and complete the projects at 175 Cummer Ave., and 39 Dundalk Dr., respectively, by approving Purchase Order Amendments for both projects to ensure funding is in place to complete required work.

In April 2020, as an urgent response to the Covid-19 pandemic and its disproportionate impact on people experiencing homelessness, the City launched the Modular Housing Initiative to rapidly create at least 250 new rent-geared-to-income and supportive homes using modular construction. Four of five projects have since been tenanted, providing a safe, affordable place to call home for over 200 residents formerly experiencing homelessness, with wrap-around support services to help them maintain their housing and improve their health and well-being.

The project at 175 Cummer Avenue was announced in Spring 2021 as part of Phase Two of the Modular Housing Initiative, along with 540 Cedarvale Ave. and 39 Dundalk Dr. While Cedarvale is complete and Dundalk is nearing completion with only landscaping and a review of costs escalations remaining, the project at 175 Cummer Ave was delayed, first because Council’s request for a Minister’s Zoning Order did not yield a response, and second because of an appeal to the Ontario Land Tribunal (OLT) of Council’s approval of the new zoning by-law for the development in August 2022.

A hearing of the appeal was held at the OLT on November 2, 2023. On January 2, 2024 the OLT released its decision, dismissing the appeal and ruling in the City’s favour. The appellants later requested a further review of the OLT’s decision on January 31, 2024, but this request was dismissed by the OLT on February 22, 2024. A motion for leave to appeal the OLT’s decision to Ontario Divisional Court was also denied on May 17, 2024. While the appellants have since made a judicial review application to the Divisional Court to challenge the OLT decision, the OLT decision stands, and zoning is in place to permit the proposed development to proceed.

This report requests authority to enable City Divisions to restart and complete the projects at 175 Cummer Ave., and 39 Dundalk Dr., respectively, by approving Purchase Order Amendments for both projects to ensure funding is in place to complete required work.

The Confidential Attachments include confidential information regarding the pricing for these projects under negotiation with the City’s supplier, estimated costs to complete the projects, and confidential information related to delivery of the project at 175 Cummer Ave.

The Modular Housing Initiative is led by the City of Toronto and funded by all three levels of government. The capital costs of the projects are funded by a combination of City capital funding sources, and funding and financing from the federal government through the Canada Mortgage and Housing Corporation. Operating costs for the wrap-around support services delivered to residents of the homes are funded by the Province of Ontario.

Confidential Attachments 1 and 2 contains relevant Financial Impact information including details related to the estimated cost to complete the projects, and confidential details of updated pricing from the City’s supplier, which are subject to negotiation.

The Chief Financial Officer and Treasurer has reviewed this report and agrees with the financial impact information.

Executive Director, Housing Secretariat and Executive Director, Corporate Real Estate Management recommend:

Land Considerations

1. City Council authorize the Executive Director, Corporate Real Estate Management, in consultation with the Executive Director, Housing Secretariat, to negotiate and execute on behalf of the City the agreement of purchase and sale with Markee Missing Middle (Merton) GP Inc. and Markee Missing Middle (Merton) Limited Partnership

 (the "Vendor") in respect of 267 Merton Street and the lease with the Markee Missing Middle (Merton) Limited Partnership (the "Tenant") in respect of 267 Merton Street and 275 Merton Street, and any documents ancillary thereto, on forms approved by the City Solicitor.

2. City Council authorize the public release of Confidential Attachments 1 and 2 to this report following the completion of the developments contemplated in Confidential Attachment 2, at the discretion of the Executive Director, Corporate Real Estate Management.

Affordable Housing

3. City Council authorize the affordable rental housing units described in Confidential Attachments 1 and 2, to be constructed on the lands known as 267 and 275 Merton Street, to be eligible for waivers of fees for planning applications, building permits, parkland dedication and development charges exemptions, unless already paid or exempted by provincial legislation.

4. City Council authorize an exemption from taxation for municipal and school purposes for 99 years for the affordable rental housing units described in Confidential Attachments 1 and 2, to be located on 267 and 275 Merton Street.

5. City Council authorize City staff to cancel or refund any taxes paid after the effective date of the exemption from taxation for municipal and school purposes as set out in the Contribution Agreement.

6. City Council authorize the Executive Director, Housing Secretariat, to negotiate and enter into, on behalf of the City, a municipal housing facility agreement (the "Contribution Agreement") with the Tenant for the development of affordable housing to be constructed on 267 and 275 Merton Street, to secure the financial assistance being provided and to set out the terms of the operation of the new affordable rental housing, on terms and conditions satisfactory to the Executive Director, Housing Secretariat, and in a form approved by the City Solicitor.

7. City Council authorize the Executive Director, Housing Secretariat to execute, on behalf of the City, any security or financing documents required by the Tenant to secure construction and conventional financing and subsequent refinancing, including any postponement, tripartite, confirmation of status, discharge or consent documents where and when required during the term of the Contribution Agreement, as required by normal business practices, and provided that such documents do not give rise to financial obligations on the part of the City that have not been previously approved by City Council.

8.  City Council authorize the City Solicitor to execute, postpone, confirm the status of, and discharge any City security documents registered as required by normal business practices.

This report provides City Council with information on a strategic opportunity to leverage the City-owned lands at 275 Merton Street (the "City Site") to create new purpose-built rental homes, including a minimum target of 30% affordable rental homes. Through negotiations led by CreateTO, in consultation with Corporate Real Estate Management and Housing Secretariat, staff have finalized the terms of a development partnership with Collecdev-Markee Limited Partnership (the “Developer”), which advance a development on the City Site, as well as the adjacent site, 267 Merton Street (the "Developer Site"), which is owned by a subsidiary of the Developer.

This report outlines the opportunity to leverage the City Site in a way that would deliver a substantial number of new affordable rental and rent-controlled market homes in support of the City's HousingTO 2020-2030 Action Plan targets to approve 65,000 new rent-controlled homes by 2030; and leverage underutilized City-owned properties to create new affordable housing. This report requests Council authority to proceed with the related real estate transactions required to advance this strategic development, along with additional City incentives to support affordable housing, as endorsed by the CreateTO Board on February 16, 2024, the details of which are outlined in Confidential Attachment 1.

The financial impact of the proposed transaction is outlined in Confidential Attachment 1 to this report.

The Chief Financial Officer and Treasurer has reviewed this report and agrees with the financial implications as contained in the Financial Impact Section.

The Chief Building Official and Executive Director, Toronto Building, and the Executive Director, Housing Secretariat recommend that:

1. City Council direct the Chief Building Official and the Executive Director, Toronto Building, in consultation with the Executive Director, Housing Secretariat, and Executive Director, Municipal Licensing and Standards, and other relevant divisions to report to the Planning and Housing Committee on October 30, 2024 with a proposed renovictions by-law and operational framework to implement the by-law.

2. City Council direct the Chief Building Official and the Executive Director, Toronto Building, the Executive Director, Housing Secretariat, in consultation with the Executive Director, Municipal Licensing and Standards, to engage with impacted stakeholders on the draft by-law components and implementation plan that is generally in line with what is outlined in Attachment 1, and include the results of this engagement process with the report to the October 30, 2024 meeting of the Planning and Housing Committee.

3. City Council direct the Chief Building Official and the Executive Director, Toronto Building to establish a dedicated staff team (led by a Project Director) to work with senior staff across relevant City divisions to develop a renoviction by-law and its operational framework by the fourth quarter of 2024.

4. City Council direct the Chief Building Official and the Executive Director, Toronto Building, the Executive Director, Housing Secretariat in consultation with the Executive Director, Municipal Licensing and Standards, to report through the 2025 and 2026 budget processes on any additional budget and resource impacts of the renoviction by-law implementation.

5. City Council request the Province of Ontario to proclaim and bring into force Bill 97, Helping Homebuyers, Protecting Tenants Act, 2023, and/or related regulations to:

a. require that when landlords provide a notice to terminate a tenancy for repairs or renovations, that it be accompanied by a report from a qualified person confirming that the renovations/repairs are so extensive that they require vacant possession of the rental unit. A qualified person should include someone with professional qualifications who is licensed and required to meet professional and ethical obligations under provincial legislation (e.g. architects and professional engineers);

b. require landlords to provide tenants who have provided notice that they wish to have a right of first refusal to return to the unit with written notice of the estimated completion date, any changes to this date, and final notification once the renovations/repairs are completed;

c. require landlords to provide tenants with a grace period of at least 60 days after the rental unit is ready for occupancy, to allow tenants to move back in and provide the required 60-day notice to end their tenancy in their temporary accommodation; and

d. allow tenants whose landlords fail to provide the required written notices, the grace period and/or the right of first refusal to apply to the Landlord and Tenant Board (LTB) for a remedy until the later of two years after the tenant moved out or six months after renovations/repairs are completed.

6. City Council reiterate its requests to the Province of Ontario to amend the Residential Tenancies Act, 2006, and/or related regulations to:

a. reintroduce vacancy control legislation which ties rents to residential units rather than tenancies;

b. introduce rent control to cover units first occupied after November 15, 2018;

c. require landlords of residential units to be responsible for finding temporary accommodation or provide sufficient relocation assistance for their tenants for the duration of the renovations if tenants intend to return post-repair/renovation;

d. require landlords to obtain a building permit before issuing an N13 notice of termination, provide a copy of the applicable permit to tenants together with any N13 notice of termination, require evidence that the permit was delivered with the N13 notice of termination as part of any L2 application to end a tenancy filed on that basis, and require the approved permit be provided to the LTB as part of any L2 application to end a tenancy filed on the basis of an N13 notice of termination;

e. provide the same rights and compensation afforded to tenants in buildings with five (5) or more units to those in buildings with less than five (5) units;

f. increase the required compensation for tenants in no-fault evictions;

g. remove ex parte eviction orders for breached repayment agreements;

h. require landlords to attach a plain-language tenants’ rights information package to N13 eviction notices (similar to the City of Toronto's Eviction Prevention Handbook);

i. regulate N11s and buy-out agreements; and

j. amend Above Guideline Increase (AGI) rules to eliminate the eligibility of capital expenditures that constitute general repair and maintenance of the property; add a new subsection requiring landlords to save 10 percent of rental income to be accessed for capital expenditures; and require landlords to notify tenants of the decrease in advance of the date when rent is required to be reduced as specified in an order permitting an AGI related to eligible capital expenses.

7. City Council reiterate its requests to the Province of Ontario to make the following operational changes:

a. allow tenants the right to in-person LTB hearings to eliminate technological barriers for individuals who do not have access to digital devices or reliable internet connection;

b. simplify LTB notices with plain language so they are easily understood and ensure all forms include a tracking number that is linked to a public registry; and

c. establish a provincial rental registry that tracks building ownership, rental rates, AGIs and their expiry dates, and LTB eviction filings and their outcomes; and monitor data on N12 and N13 evictions.

8. City Council reiterate its requests to the federal and provincial governments to significantly increase their investment in the HousingTO 2020-2030 Action Plan which will increase the supply of new affordable and supportive homes, protect existing rental stock including through retrofit programs, and help residents across the city to maintain their existing homes.

9. City Council forward this report to the Association of Municipalities of Ontario (AMO) and Greater Toronto Hamilton Area municipalities for information, as they may be considering the development of similar strategies to address renovictions within their jurisdictions.

The HousingTO 2020-2030 Action Plan and Toronto Housing Charter, both adopted in 2019, commit the City to advancing the progressive realization of the right to adequate housing and set a number of strategic priorities related to protecting tenants, preserving affordable housing supply, and realizing a vision of a city where everyone has a safe, affordable place to call home. City Council has recently increased its housing targets under the HousingTO Plan, however, to ensure the City has sufficient affordable rental homes for low- and moderate-income residents, it is also vital to preserve existing affordable rental homes. As a result of factors impacting Toronto's housing market, including low rental vacancy rates, insufficient new rental homes, and the financialization of housing, over the past decade the Toronto region has lost more affordable and mid-range rental homes than have been built. These housing market pressures combined with gaps in provincial rent control requirements have resulted in increased rates of evictions, with disproportionate impacts on low-income and marginalized residents, including those from equity-deserving groups.

There have been reports of a growing trend of renovictions in Toronto, where a landlord illegitimately evicts a tenant by alleging that vacant possession of a rental unit is needed to undertake renovations or repairs. Renovictions can include refusing to allow a tenant who has exercised their right of first refusal to return post-renovation, illegally raising the rent on a returning tenant, or not undertaking major renovations after evicting renters. This results in the displacement of tenants, the permanent loss of affordable market rental housing, and contributes to rising homelessness in Toronto.

The Province of Ontario has jurisdiction over rent control policy and landlord-tenant matters through the Residential Tenancies Act, 2006. The most effective tools to protect tenants and deter renovictions reside at the provincial level. City Council has previously requested that the Province introduce measures to amend provincial legislation to protect tenants from renovictions, including but not limited to: introducing rent control that is maintained upon turnover of a unit, requiring landlords to provide temporary relocation assistance while renovations are taking place, and creating a centralized data system and registry for rental properties and eviction activities in Toronto.

In the absence of these changes, Toronto and other cities are considering steps to address the growing trend of renovictions within their authorities. On July 19, 2022, City Council, through Item PH35.18, adopted a Renovictions Policy as a framework to guide the development of a new renovictions by-law that would respond to growing trends in illegitimate evictions, protect tenants, and preserve affordable housing supply.

In January 2024, the City of Hamilton adopted a Renovation Licence and Tenant Relocation By-law (“Hamilton by-law") that aims to prevent renovictions and mitigate harms to tenants by requiring a licence to renovate tenanted rental units. The by-law includes several new requirements of landlords to achieve these objectives and establishes a dedicated investigation, compliance, and enforcement framework. The Hamilton by-law was enacted on April 10, 2024, and the administrative and enforcement framework are under development. The Hamilton by-law is expected to come into force January 1, 2025.

On February 28, 2024, the Planning and Housing Committee directed staff to include in this report consideration and analysis of the Hamilton by-law and how that approach could be adopted by Toronto. This report responds to this direction and provides staff’s analysis of implementation considerations related to the Hamilton by-law. Further comments respecting the by-law will be provided by the City Solicitor by way of a separate report. It also provides City Council with an update on actions underway to implement the renovictions policy and corresponding by-law, and provides necessary context regarding provincial policy and legislative changes impacting renovictions and tenants’ rights (including Provincial Bill 97, Helping Homebuyers, Protecting Tenants Act, 2023). Finally, the report provides Council with information on how the Hamilton by-law approach could be implemented in Toronto, should Council provide such direction.

There are no current financial impacts arising from the recommendations contained in this report.

The financial impacts associated with implementation of programs or initiatives related to implementing the Renoviction Policy or a renovictions by-law will be detailed in appropriate reports to Council or annual budget processes. It is expected that such programs and initiatives could not be fully funded through cost recovery and will require City Council to approve new and dedicated funding.

The Chief Financial Officer and Treasurer has reviewed this report and agrees with the financial implications as identified in this Financial Impact section.

The City Solicitor recommends that:

1. City Council direct that the confidential information contained in Confidential Attachment 1 remain confidential in its entirety, as it contains advice which is subject to solicitor-client privilege.

This report is supplementary to the report from the Chief Building Official and Executive Director, Toronto Building and the Executive Director, Housing Secretariat entitled Renovictions Policy Implementation: Review of Hamilton Renovation Licence and Tenant Relocation By-law and developing a Toronto Renovictions By-law dated May 30, 2024 (the "Renovictions Update Report"). This report provides legal advice on the City of Hamilton's Renovation Licence and Relocation By-law and the potential implementation of a similar by-law in Toronto.

There is no financial impact resulting from the adoption of the recommendations in this report.

The Executive Director, Housing Secretariat, recommends that:  

New Rental Supply Housing Program

1. City Council approve the Rental Housing Supply Program, as outlined in this report, to assist the City in achieving its approved rent-controlled, affordable and rent-geared-to income rental housing targets.

2. City Council authorize the Executive Director, Housing Secretariat, in consultation with the Chief Financial Officer and Treasurer, to provide City financial incentives to eligible rental housing units under the Rental Housing Supply Program, up to the number of rental housing units approved annually through the Housing Secretariat Budget, including exemptions from development charges, parkland dedication fees, community benefits charges, if not exempted by provincial legislation, and waivers of planning application and building permit fees, to eligible housing developments.

3. City Council direct Executive Director, Housing Secretariat, in consultation with the Chief Financial Officer and Treasurer, to develop a review and evaluation process to assess the financial impact of Rental Housing Supply Program applications and recommend approval of financial incentives for Council approval.

4. City Council authorize the Executive Director, Housing Secretariat, to launch a three-year Pilot Community Housing Pre-development Fund, to provide funding to Community Housing Providers for the purpose of undertaking pre-development activities in accordance with guidelines included in Attachment 3 to this report.

5. City Council authorize the Executive Director, Housing Secretariat to approve projects eligible for the Pilot Community Housing Pre-development Fund, in accordance with guidelines included in Attachment 3 to this report, up to the number approved annually through the Housing Secretariat Budget.

6. City Council request the Executive Director, Housing Secretariat, to report to City Council annually on the results of the Rental Housing Supply Program and Pilot Community Housing Pre-Development Fund from the prior year, including any recommended modifications to the programs.

7. City Council adopt the updated Municipal Housing Facility By-law in Attachment 4 to the report from the Executive Director, Housing Secretariat and repeal Municipal Housing Facility By-law 183-2022.

8. City Council authorize the City Solicitor make such stylistic and technical changes to the draft Municipal Housing Facility By-law as may be required.

Financial Support for Affordable Rental Housing Projects

9. City Council authorize the Executive Director, Housing Secretariat, to provide capital funding to the projects listed in Confidential Attachment 1, up to $260,000 per affordable rental unit, in a total amount not to exceed $351,515,142.

10. City Council authorize the Executive Director, Housing Secretariat to negotiate and execute, on behalf of the City, the following:

a. a municipal housing facility agreement ("Contribution Agreement") with eligible proponents for funding and financial incentives, and to set out the terms of the development and operation of affordable rental housing, on terms and conditions satisfactory to the Executive Director, Housing Secretariat and in a form satisfactory to the City Solicitor;

b. a municipal housing facility agreement ("Contribution Agreement") or amendments to existing Contribution Agreements with the proponents listed in Confidential Attachment 1, or related entities, for funding and financial incentives and to set out the terms of the development and operation of affordable rental housing, on terms and conditions satisfactory to the Executive Director, Housing Secretariat and in a form satisfactory to the City Solicitor;

c. a pre-development funding agreement with eligible proponents approved under the Pilot Community Housing Pre-development Fund, including the projects outlined in Confidential Attachment 1, to secure the financial assistance and to set out the terms of the pre-development funding, on terms and conditions satisfactory to the Executive Director, Housing Secretariat and in a form satisfactory to the City Solicitor; and,

d. to enter into agreements or other suitable arrangements with City of Toronto agencies and/or corporations, the Government of Ontario and/or its agencies, community agencies, private entities and/or individuals, as appropriate, to deliver projects approved under the Rental Housing Supply Program.

11. City Council direct the Chief Financial Officer and Treasurer, the Executive Director, Housing Secretariat, and the Executive Director, Financial Planning to develop an implementation plan to establish a revolving Affordable Housing Fund to be overseen and used by the Executive Director, Housing Secretariat in consultation with the Executive Director, Financial Planning to support future rent-geared-to-income and affordable rental housing projects.

Expediting Development Review and Legal Due-diligence

12. City Council request the Executive Director, Development Review Division, in consultation with the Executive Director, Housing Secretariat, Chief Executive Officer, CreateTO and Chief Planner and Executive Director, City Planning, to identify projects approved by the Rental Housing Supply Program that will be reviewed under the Priority Development Review Stream.

13. City Council increase the 2024 Operating Budget for Legal Services Division by $0.166 million gross and $0 net, fully funded from the 2024-2033 Capital Budget and Plan for Housing Secretariat and increase the approved staff complement for Legal Services by two permanent positions to support a range of housing initiatives.

Intergovernmental Considerations

14. City Council request the Government of Ontario to support the implementation of the Rental Housing Supply Program, which is also necessary to support delivery of the Ontario's more Homes for Everyone plan targets, by:

a. urgently allocating land to develop new purpose-built affordable, rent-controlled and rent-geared-to-income homes and require that as part of any future Provincial land offerings, at least 30% of the gross floor area be allocated for affordable housing for 99 years;

b. partnering with the Federal Government on their Canada Builds program and the City of Toronto to launch an Ontario Builds housing program and:

1. allocate between $500 million and $800 million per year in grant funding to Toronto over the next seven years;

2. allocate between $6.5 billion and $8 billion in low-cost financing/re-payable loans to Toronto over the next seven years;

3. provide loan guarantees for non-profit, co-op and public led purpose-built affordable and market rental projects, as well as for affordable homeownership projects;

c. allowing zoning with conditions to enable the City of Toronto to secure purpose-built rental housing as part of individual site-specific zoning by-laws;

d. allowing for Inclusionary Zoning to be applied across the city and approve the City’s Protected Major Transit Station Areas delineations, and require the homes to meet the City’s income-based definition of affordable housing and ensure that affordability is secured for 99 years; and,

e. adopting the City of Toronto’s income-based definition of “affordable housing” and harmonizing all provincial housing programs to create certainty and predictability.

15. City Council request the Government of Canada to support the implementation of the Rental Housing Supply Program, in alignment with Canada’s Housing Plan, and the subsequent 2024 Federal Budget, by:

a. urgently allocating land to develop new purpose-built affordable, rent-controlled and rent-geared-to-income homes and require that as part of any future federal land offerings, at least 30% of the gross floor area be allocated for affordable housing for 99 years;

b. launch the Canada Builds program in partnership with the Province of Ontario and the City of Toronto to:

1. allocate between $500 million and $800 million per year in grant funding to Toronto over the next seven years;

2. allocate between $6.5 billion and $8 billion in low-cost financing/re-payable loans to Toronto over the next seven years; and,

3. provide loan guarantees for City-supported non-profit and public led purpose-built affordable and market rental projects.

16. City Council direct that Confidential Attachment 1 to the report (May 30, 2024) from the Executive Director, Housing Secretariat remain confidential in its entirety as they: outline a position, plan, procedure, criteria or instruction to be applied to any negotiations carried on or to be carried on by or on behalf of the City; and contain financial information, supplied in confidence to the City of Toronto and CreateTO, which, if disclosed, could reasonably be expected to prejudice significantly the competitive position or interfere significantly with the contractual or other negotiations of a person, group of persons, or organization.

Toronto is facing two housing crises – one where there is a lack of deeply affordable and supportive housing for low-income marginalized and vulnerable residents; and a more recent one in which rising rents have made it increasingly unaffordable for middle income earners, key workers and professionals to live in the city. This was noted by the City’s Perspective on the Rental Housing Roundtable report in 2023. Urgent action across the entire housing continuum is required to prevent more residents, specifically renters, from experiencing housing instability and potentially homelessness; to avoid Toronto’s social service sector facing a deepening key worker staffing crisis; and to allow Toronto’s businesses to attract the workforce and labour supply they need to grow.

City Council has recognized the need to expand the City's HousingTO 2020-2030 Action Plan (HousingTO Plan) targets beyond affordable rental homes, to include rent-geared-to-income (RGI) and rent-controlled homes, thereby advancing a generational transformation of Toronto’s housing system by 2030. In support of the delivery of a full range of homes, City Council has further directed staff to recommend revisions to the Open Door Affordable Rental Housing program (Open Door program). This report responds to City Council’s request to review the Open Door program in light of the revised HousingTO Plan targets that include rent-geared-to-income, affordable rental, and rent-controlled homes (2023,EX9.3).

The Open Door program has been the City’s signature affordable rental housing initiative since its launch in 2016, and has provided City funding and incentives (including waivers of fees and charges, and property tax exemptions) to support the development of over 21,000 affordable rental homes on public, non-profit, co-op and private land.

The Open Door program has been able to support a healthy pipeline of affordable rental homes across Toronto, with 1,911 of these homes constructed and an additional 3,011 currently under construction. There are an additional 16,530 homes that are currently stuck in pre-development phases due to requiring additional support, including funding and financing, and acceleration of approvals, to move them into construction. 

This report provides recommendations to transform the Open Door program into the Rental Housing Supply Program in light of the updated HousingTO Plan targets, recent legislative changes to the Development Charges Act (DCA) through the More Homes Built Faster Act, 2022 (Bill 23); the More Homes, More Choice Act, 2019 (Bill 108), and the Affordable Homes and Good Jobs Act, 2023 (Bill 134); federal and provincial housing policy and funding changes; and the current macroeconomic context which is making it increasingly difficult to adequately scale-up the purpose-built rental housing supply in Toronto.

To respond to the housing and homelessness crises and support City Council’s new target for 65,000 rent-controlled homes, this report proposes:

1) Allocating capital funding to 18 affordable rental and rent-geared-to-income housing projects, outlined in Confidential Attachment 1, aimed at accelerating delivery of over 2,600 new affordable rental homes. Through this funding, non-viable projects will be able to move to construction start and secure financing. Staff estimate that in addition to unlocking over 2,600 affordable rental homes, a further 3,380 market and rent-controlled rental homes will enter construction for a total of almost 6,000 new rental homes.

2) Launching the new Rental Housing Supply Program which:

• Aligns the program definition of affordable rental housing with the City’s Official Plan income-based affordable housing definition and the provincial Affordable Residential Units Bulletin definition.
• Establishes a framework for prioritizing and recommending capital funding for affordable and rent-geared-to-income rental homes, up to a maximum of $260,000 per unit.
• Introduces a proposed program definition of rent-controlled homes where rent levels are higher than income-based affordable rents and at or below 150% of the average City of Toronto rent, by unit type, as reported annually by Canada Mortgage and Housing Corporation. This new program definition is consistent with the Official Plan definition of mid-range moderate rents and will include limiting rent increases to the provincial rent increase guideline under the Residential Tenancies Act, 2006 plus 2%.
• Provides proposed incentives to not-for-profit corporations, non-profit housing co-operatives (co-ops), Indigenous housing providers, (collectively referred to as “Community Housing Providers” throughout this report), as well as the Toronto Community Housing Corporation (TCHC) and the Toronto Seniors Housing Corporation (TSHC) to support the development of new rent-controlled homes.

3) Launching a Pilot Community Housing Pre-development Fund to support the intensification and re-development of Community Housing sites.

4) Working towards launching a sustainable and revolving Affordable Housing Fund to attract funding from government and non-government sources including financial institutions, philanthropic organizations, and private sector organizations (including large employers) to support a range of City-supported and City-led affordable rental housing projects.

These measures also complement the “Community Housing Modernization and Growth Strategy” (the Community Housing Strategy) report that is also to be considered by the Planning and Housing Committee at the same meeting on June 13, 2024. The Community Housing Strategy includes concrete measures to support long-term sustainability and affordability of the city's existing community housing stock over the next decade as they navigate expiry of mortgages, ending of land leases with the City, and escalating maintenance costs. The Community Housing Strategy also proposes a number of policy and planning measures aimed at increasing the community housing stock including enhancements to the Multi-Unit Residential Acquisition Program (MURA) to enable Community Housing Providers to better compete in the city’s speculative market and to acquire properties that can be operated as affordable rental housing in perpetuity.

The proposed new Rental Housing Supply Program aims to support a shift in Toronto's housing market, where purpose-built rentals are the most common form of rental housing but have contributed the least amount of new supply over the past 10 years. During this time, most new rental supply has derived from condominiums, which according to the Canada Mortgage and Housing Corporation Rental Market Report are generally more expensive and do not offer the same level of security of tenure for tenants. The proposed new Rental Housing Supply Program also aims to support a generational transformation of Toronto’s housing system to shift Toronto’s housing system and increase the supply of non-market, community housing.

Despite an increase in purpose-built rental housing starts in 2023, the rental housing supply is not forecast to keep up with demand. Canada Mortgage and Housing Corporation (CMHC) anticipates a decline in housing starts that will persist through 2024 and 2025, reflecting the lagged effect of higher interest rates, labour shortages, and supply chain issues. Toronto is continuing to face high rental demand driven by strong population growth and an increasing number of renter households squeezed out of homeownership market. The rental market in Toronto is expected to remain tight without significant action by all orders of government to facilitate the development of purpose-built rental housing. This proposal responds to stakeholder feedback in the City’s Perspective on the Rental Housing Roundtable report, which recommended that the City study additional means of incentivizing purpose-built rental housing supply beyond what is already available in the Open Door program, and recognize the vital role of the non-profit sector in providing affordable housing.

While the City is committed to taking every possible action within its jurisdictional and financial capacity to tackle the housing crisis, strengthened partnerships with the federal and provincial governments are needed to complement Toronto’s efforts. Recent federal and provincial measures introduced to support purpose-built rental construction, such as providing a 100% rebate on the Goods and Services Tax (GST) and Harmonized Sales Tax (HST) on new purpose-built rental housing is an example of government policies aligning to advance collective housing objectives.

However, new and enhanced policy, program and financial tools are urgently needed to meet Toronto, Ontario and Canada’s respective housing supply targets. This includes a new fiscal deal to support the structural changes that will put Toronto on a path to long-term financial sustainability, as well as a commitment from the federal and provincial governments to invest in the HousingTO Plan.

The proposed new Rental Housing Supply Program, transformed from the Open Door program, will significantly increase the supports available to partners interested in delivering Rent-Geared-to-Income, affordable rental and rent-controlled homes. The anticipated financial impacts associated with the Rental Housing Supply Program are provided below.

1. Allocating Capital Funding to Affordable Housing Projects Stuck in the Pipeline

This report proposes allocating approximately $351 million to the affordable rental housing projects outlined in Confidential Attachment 1 to this report, to unlock and expedite construction starts for approximately 2,606 Rent-Geared-to-Income and affordable rental homes. These homes are anticipated to reach construction start in 2024 and 2025, which will support meeting the City’s commitments under the Federal Housing Accelerator Fund and the Provincial Building Faster Fund programs. These investments will enable 18 affordable rental housing developments to reach construction start in 2024 and 2025, adding to the 47 projects already funded and under or nearing construction start, listed in Attachment 2.

These projects have previously been approved by City Council for funding or financial incentives under affordable housing programs (including Open Door or Housing Now programs) and require further funding recommended through this report to achieve construction start. The City has undertaken a financial and construction readiness review of all projects, with support from an independent third-party consultant, and in consultation with CreateTO and Toronto Community Housing Corporation. Projects have been prioritized for funding based on readiness to achieve construction start, and scored consistently using a number of criteria that align with the City’s HousingTO Plan objectives, including type of proponent, length and depth of affordability, funding request, and access to other government funding sources.

The Housing Secretariat's 2024-2033 Capital Budget and Plan provides a total funding of approximately $351 million to be re-allocated to the Rent-Geared-to-Income and affordable rental project outlined Confidential Attachment 1, which are scheduled to begin in 2024.

Subject to the adoption of the Rental Housing Supply Program, the City will continue to support Rent-Geared-to-Income and affordable rental homes through the allocation of up to $260,000 per eligible affordable rental and Rent-Geared-to-Income home. This is the maximum allowable funding allocation under the Rental Housing Supply Program. Actual funding per project will be determined based on the evaluation of applications on a site-by-site basis, in consultation with the Chief Financial Officer & Treasurer, and based on project parameters and additional sources of funding that can be leveraged to support the project’s financial viability. These funds will be provided as interest free forgivable loans to eligible and approved projects and will be tied to milestones and requirements in agreements with housing providers.

2. Pilot Community Housing Pre-development Fund

As part of adopting MM13.27 - Federal Housing Accelerator Fund, Council requested staff to consider the creation of a municipal Indigenous, non-profit and co-operative housing pre-development fund, to supplement existing CMHC funding programs, and provide support to qualified housing organizations working to assist the City, to deliver net new RGI, affordable and rent-controlled homes, and report on the potential sources of funding and the mechanism to deliver the pre-development funds.

This report recognizes the need for additional support for Community Housing Providers to increase the supply of Rent-Geared-to-Income, affordable and rent-controlled homes. The three-year pilot program will commence in 2024 and conclude in 2026. An annual allocation of approximately $10 million will be available, with adjustments made as necessary during the City's annual budget process based on ongoing evaluations of need and take-up. Through the Pilot Community Housing Pre-Development Fund, projects will be eligible to receive a maximum of $50,000 per Rent-Geared-to-Income and affordable rental home in the form of interest free loans due on first construction financing draw.

Projects in receipt of the City’s Pilot Community Housing Pre-development Fund will be required to apply for Seed Funding available from Canada Mortgage and Housing Corporation which provides financial support (up to $350,000 in interest-free loans and a maximum of $150,000 of forgivable contributions) for individuals or organizations involved in the initial phases of creating an affordable housing project to assist with early development expenses.

The Pilot Community Housing Pre-development Fund will be a revolving fund where funds will be re-paid at the first construction loan draw and re-invested back into the pre-development fund and/or in future Community Housing projects in Toronto. Eligible costs and additional details are included in Attachment 3.

The City, in collaboration with Toronto Alliance to End Homelessness and Co-operative Housing Federation of Toronto, is reviewing non-profit and co-op sites with re-development potential (intensification and infill) that could benefit from the Pilot Community Housing Pre-development Fund over the next three years to increase the community housing stock.

This report proposes to allocate approximately $16 million in pre-development funding to affordable housing projects this year, as outlined Confidential Attachment 1, to support their due-diligence activities with the aim of expediting construction start timelines. The Housing Secretariat's 2024-2033 Capital Budget provides initial funding of approximately $16 million to be re-distributed to these Rent-Geared-To-Income and affordable rental homes in 2024. Any necessary modifications and required funding requests to year 2025 will be completed through the 2025 Budget process.

3. Proposed Incentives for Rent-controlled Homes Delivered by Community Housing Providers

The Open Door Program has historically supported new affordable rental housing projects through relief from building permit fees, planning application fees and parkland dedication fees as well as an exemption from development charges and property taxes for a stipulated affordability period (typically 40-99 years).

The Province's adoption of the More Homes Built Faster Act, 2022 (Bill 23) and the Affordable Homes and Good Jobs Act, 2023 (Bill 134) has substantially altered the landscape of financial incentives available for the City to provide affordable rental housing developments, by introducing provincial exemptions of development charges (DCs), community benefit charges (CBCs), and parkland dedication fees for developments providing 25 years affordability, at the levels set out by the Provincial government in the Affordable Residential Units Bulletin, and subject to an agreement. The Province recently announced these exemptions, for both affordable rental and ownership units, will come into effect on June 1, 2024.

Bill 23 also created different sets of exemptions for private sector and non-profit housing developments which came into effect in November 2022, including through development charge, community benefit charge and parkland exemptions for non-profit rental and ownership housing, in addition to development charge discounts for purpose-built market rental housing. The non-profit exemption applies to all residential units, whether affordable, market, ownership or rental. There is no requirement for a minimum time frame for the building to be non-profit, or authority to enter into agreement or require the repayment of financial incentives should the property be sold in the future to a for-profit entity.

To further address the shortage of purpose-built rental housing supply and support the City’s housing target of 17,500 rent-controlled homes, this report proposes supporting Community Housing Providers, as well as Toronto Community Housing Corporation and Toronto Seniors Housing Corporation to build rent-controlled homes with rent levels between income-based affordable rents (the lower of Official Plan and the Development Charges Act definitions) and up to 150% of the average market rent, by unit type, as reported annually by Canada Mortgage and Housing Corporation, when first rented to a new tenant, and provided that rent increases are limited to the provincial rent increase guideline under the Residential Tenancies Act, 2006 plus 2%, but not greater than the consumer price index. This new rental threshold aligns with the Official Plan definition of mid-range moderate rents. Rent-controlled homes will need to be maintained for a minimum of 40 years, and projects will need to include at least 30% of gross floor area (GFA) affordable housing.

To support creation of these rent-controlled homes by the Community Housing Providers, this report proposes the following financial incentives to be provided by the City (applicable to the rent-controlled portion of developments):

Waivers of building permit and planning application fees; and,
Property tax exemptions for the duration of rent-control, subject to City Council approval.
These incentives are supplementary to development charge, community benefit charge, and parkland dedication fee exemptions available to non-profit housing developments that meet provincial requirements, and other growth funding tool discounts and exemptions provided to these developments.

It should be noted that there is a gap in the provincial definition of a non-profit housing developer for the purpose of determining eligibility for provincial exemptions under Bill 23. The specific definition provided in Bill 23 requires that affordable housing be the primary object of the non-profit corporation. This may not capture the mandate of some multi-service non-profit corporations operating in Toronto whose object includes affordable housing, but whose articles of incorporation do not describe this as the organization’s primary object. In these cases, Housing Secretariat, in consultation with the Chief Financial Officer and Treasurer, will assess applications and review their eligibility for City incentives, including evaluating costs and benefits, to exempt development charge, community benefit charge, and parkland dedication fees on a case-by-case basis.

Table 1 – Proposed Financial Incentives for 1,000 Rent-controlled Homes1 delivered by Non-profit, Co-op, Indigenous Housing Providers, Toronto Community Housing Corporation and Toronto Seniors Housing Corporation.

Assumptions for estimating the value of incentives:

1) Calculations based on unit mix of 10% studio, 45% 1-bed, 35% 2-bed, 10% 3-bed units. Calculated using 2024 rates.

2) Subject to meeting provincial definition of non-profit housing development.

3) The estimated value is before any previously Council approved rental discounts provided by the City (estimated at $25 million), which would be repayable to the City should the units no longer be rental.

4) This reflects the total financial impact to the City arising from all exemptions available to non-profit housing developments mandated by the Province, and not the Rental Housing Supply Program.

4. Supporting the Implementation of the Rental Housing Supply Program

To support the successful roll-out of the Rental Housing Supply Program, and a range of housing initiatives aimed at expedited delivery of housing projects, additional legal staffing support is required.

This report proposes an increase in the 2024 Operating Budget for the Legal Services Division by $165,558 gross and $0 net, to add two permanent positions to the Housing Secretariat’s legal staffing complement, fully funded from the Housing Secretariat's 2024-2033 Capital Budget and Plan, with annualized and future year financial impact to be considered as part of the annual budget process.

These two positions, being added to Legal Services Division, will be dedicated to the Housing Secretariat and as needed, to support delivery of a range of housing initiatives. These positions will start September 1, 2024. The Executive Director, Housing Secretariat, and the City Solicitor will meet annually to evaluate the City Legal resources needed to meet the service level expectations and requirements of the Housing Secretariat.

5. Establishing a Sustainable Affordable Housing Fund

Building Rent-Geared-to-Income, affordable and rent-controlled homes in the current challenging market conditions requires a combination of land, low-cost financing, significant grant funding, and financial incentives as well as a willingness to accept a lower rate of return or achieving rental stabilization over a longer period. Existing funding and financing programs are not currently working in a coordinated manner causing situations where land is ready to be developed but funding and financing are not readily available or the timelines to secure funding and financing will result in a project becoming financially unviable. In other instances, the bar to secure low-cost financing is too high to the point that many community housing organizations are not able to secure financing without loan guarantees that tie up significant assets to advance a new housing development.

The City, through this report, is proposing an expanded suite of funding and incentives to support housing developments, recognizing that even with these new investments, there are housing projects that would remain unfunded and that significant federal and provincial funding is required.

As part of 2023.EX9.3 – Generational Transformation of Toronto’s Housing System to Urgently Build More Affordable Homes, City Council directed staff to explore the establishment of a sustainable Toronto Housing Affordability Fund and report back in 2024 with recommendations to advance this initiative. The Fund is intended to provide an opportunity for the City to work with the federal and provincial governments, financiers, academic institutions, philanthropic organizations, and private sector organizations (including large employers) and explore ways to facilitate access to various low-cost financing, grant funding and loan guarantees solutions for public, not-for-profit, co-operative, and Indigenous-led organizations to improve financial viability of affordable rental housing projects.

Through the recommendations in this report, Housing Secretariat and other relevant divisional staff will work to implement and establish a sustainable Affordable Housing Fund. The implementation plans and any required resources will be reported out through the 2025 budget process or future staff reports.

The Affordable Housing Fund could act as a vehicle for philanthropic organizations to flow their affordable housing funds to the City to be allocated as patient capital and/or pre-development funds to City-supported or City-led affordable housing projects. Access to patient capital particularly for affordable and rental housing projects is critical as the rental revenues for these projects are limited, further limiting their ability to secure construction financing.

Additionally, the Affordable Housing Fund could enable the City to leverage partnerships with the financial sector and banks to secure low-cost financing solutions for City-supported and City-led projects where land and funding is already secured. This will be a critical step in advancing public-builder sites where the City is responsible for direct delivery of the projects.

The City will also continue leveraging its Social Debenture Program (Social Bond) that was first launched in 2020 to fund capital projects that meet the City’s social objectives, including affordable housing development and/or capital repairs. A total of $450 million in social bonds have been raised to date and have been issued for 10-20 year periods. Raising new funding and financing solutions through these alternative approaches will relieve the pressure from the City’s tax base and will bring additional resources to support the City’s ambitious housing objectives.

6. Enhanced Support Required from the Federal and Provincial Governments

The federal government, through Budget 2024, has announced new funding to boost home construction, including:

• A $15 billion top-up to the Apartment Construction Loan Program for a total of $55 billion to build 131,000 new rental apartments;
• Launching Canada Builds which leverages the Apartment Construction Loan Program by making it available to support partnerships with provinces that launch housing plans;
• Launching a new $6 billion Canada Housing Infrastructure Fund for water and wastewater infrastructure;
• $1.3 billion for Reaching Home: Canada’s Homeless Strategy, and,
• $1.5 billion for the Canada Rental Protection Fund, to help non-profits acquire rental housing to maintain existing housing stock for those on low and fixed incomes.

The City is in a unique position to work with the federal government and invest these new funds through existing programs such as the proposed Rental Housing Supply and the Multi-Unit Residential Acquisition Program.

Recent federal and provincial measures introduced to support purpose-built rental construction, such as providing a 100% rebate on GST and HST on new purpose-built rental housing is an example of government policies aligning to advance collective housing objectives. As an example for a two-bedroom rental home valued at $500,000, the enhanced Ontario HST New Residential Rental Property Rebate would deliver $40,000 in provincial tax relief. When combined with the enhanced federal GST New Residential Rental Property Rebate, this would amount to $65,000 in tax relief.

Approximately $500-$800 million in funding and $900 million-$1 billion in low-cost financing is required from each of the federal and provincial governments respectively per year over the next seven years to support advancing the City’s 65,000 rent-controlled homes approvals. Additional funding is needed from the Province of Ontario to continue providing operating subsidies and support services to advance the City’s supportive housing targets. This includes funding for rent supplements needed to help deepen affordability for low- and moderate-income households, as well as funding to deliver a range of wraparound social and health supports onsite, which are necessary to help vulnerable and marginalized residents successfully exit (or prevent their entry into) homelessness.

Financial Impacts of Provincial Policies and Legislation

The City's ability to continue to deliver its housing programs and the community infrastructure required to support new housing, is currently at high risk due to the significant financial impacts arising from the provincial changes to the Development Charges Act and Planning Act impacting municipal growth funding tools. Specifically, the province has removed the City's ability to collect anticipated and budgeted development charges for housing services, resulting in an approximate $1.2 billion in lost revenues for Affordable Housing services over 10 years.

Additionally, the Government of Ontario has introduced a number of changes to policies and legislation impacting municipal growth funding tools and other legislation over the past few years through the Ontario Housing Supply Action Plan- Bill 108, More Homes, More Choice Act; Bill 138, Plan to Build Ontario Together Act, 2019 ; Bill 109, More Homes for Everyone Act; Bill 134, Affordable Homes and Good Jobs Act, 2023; Bill 23 More Homes Built Faster Act, 2022 and the recent Bill 185, Cutting Red Tape to Build More Homes Act, 2024 which is currently at second reading at the time of writing of this report.

These changes have limited the impact of the City's key tools and programs for creating new affordable rental housing, including the Open Door program, Section 37 density bonusing, and Inclusionary Zoning. Provincial exemptions to growth funding tools are provided with a shorter term of affordability and in some cases without authority to require agreements with housing providers, or a requirement for the repayment of incentives should there be a change in use or tenure.

In the absence of the City being fully reimbursed by the province for the lost revenues as a result of changes to the Development Charges Act and Planning Act, and without new financial and policy tools, the City will not be able to provide the services essential to support growth, deliver existing housing programs necessary to scale up supply and respond to the needs of residents, thereby impacting the financial sustainability of growth to the City and the City's ability to plan for complete communities. The City continues to request the Province of Ontario make the City whole for the significant financial impact arising from adoption of this legislation.

Newly Proposed Optional Multi-Residential Property Subclass

On March 26th, 2024, the Province's Finance Minister presented Ontario’s 2024 Spring Budget. In an effort to promote the development of purpose-built rental housing in Ontario, Ontario Regulation 140/24 was filed to create an optional new Multi-Residential Property Tax Subclass. Under the new regulation, municipalities have the option to apply a municipal tax rate reduction of up to 35% of the new multi-residential tax rate for eligible properties by passing a bylaw. Staff are currently reviewing the provincial regulation and will be reporting back to Executive Committee with additional information in 2024. Any tax policy implications will be considered as part of the 2025 budget process. The potential impacts on the Rental Housing Supply Program will be reviewed as a new tax policy may further support the construction of affordable purpose-built rental housing, addressing critical housing needs and fostering inclusive community growth.

The Chief Financial Officer and Treasurer has reviewed this report and agrees with the financial implications.

The Executive Director, Housing Secretariat recommends that:

New Regulatory and Funding Framework

1. City Council authorize the Executive Director, Housing Secretariat to:

a. enter into new Service Agreements related to the administration and funding of Part VII.1 housing projects that comply with the requirements of Ontario Regulation 367/11 under the Housing Services Act (“HSA") and which address the matters set forth in Attachment 1 to this report regarding Part VII housing projects with mortgages that have reached the end of their term, upon terms and conditions satisfactory to the Executive Director, Housing Secretariat, and in a form satisfactory to the City Solicitor;  and

b. to provide notice as required by the Housing Services Act of each such agreement to the Minister of Municipal Affairs and Housing.

2. City Council request the Executive Director, Housing Secretariat to engage with all orders of government, financial institutions, Community Housing Providers, membership organizations and other organizations providing programs that support access to safe and affordable housing on opportunities for mortgage refinancing for Community Housing Providers in Toronto with expiring mortgages to assist these housing providers in leveraging their assets to access additional funding to repair and revitalize their housing stock.

Considerations for a New Lease Policy Framework with Community Housing Providers

3. City Council adopt the Lease Policy Framework (Attachment 2) for extending, renewing or entering into new leases with non-profit housing corporations, non-profit housing co-operatives, and Indigenous housing providers (collectively referred to as "Community Housing Providers") providing social and affordable housing on City-owned land.

4. City Council authorize the Executive Director, Corporate Real Estate Management, in consultation with the Executive Director, Housing Secretariat to extend, renew or enter into, and thereafter administer and manage, leases that are in accordance with the terms set out in Attachment 2, and on other amended terms and conditions satisfactory to the Executive Director, Corporate Real Estate Management, with Community Housing Providers providing subsidized and affordable housing on City-owned land who meet the eligibility criteria set out in Attachment 2.

5. City Council authorize severally each of the Executive Director, Corporate Real Estate Management and the Director, Real Estate Services to execute leases pursuant to the Lease Policy Framework and any related documents on behalf of the City.

6. City Council authorize the Executive Director, Housing Secretariat, in consultation with the Executive Director, Corporate Real Estate Management, to negotiate and execute on behalf of the City, operating agreements with Community Housing Providers providing subsidized and affordable housing on City-owned land in accordance with the Lease Policy Framework in Attachment 2, on terms and conditions satisfactory to the Executive Director, Housing Secretariat and in a form satisfactory to the City Solicitor.

7. City Council authorize the Executive Director, Housing Secretariat to negotiate and execute on behalf of the City, an extension of the operating agreement and the date by which Woodgreen Community Housing Incorporated, or its successor, is obligated to re-convey the property at 444 Logan Avenue to the City, to August 1, 2026, to allow time for the City to negotiate the terms of the continued operation of this social housing project, on terms and conditions satisfactory to the Executive Director, Housing Secretariat and in a form approved by the City Solicitor.

8. City Council direct the Executive Director, Housing Secretariat and the Executive Director, Corporate Real Estate Management to prioritize the negotiation and completion of new long-term ground leases with Beech Hall Housing Co-operative and Alexandra Park Housing Co-operative pursuant to the Lease Policy Framework and:

a. take any additional steps to successfully develop and negotiate a ground lease and operating agreement with Beech Hall Housing Co-operative and Alexandra Park Co-operative, including where necessary, commission building condition assessments;

b. that in such negotiations and finalizing of proposed community housing Service Agreements, the City recognize any existing mandates; and

c. report back by October 30, 2024 to Planning and Housing Committee on the status of lease negotiations with the Beech Hall Housing Co-operative and Alexandra Housing Co-operative and, should it be necessary, make recommendations to extend the current leases arrangements until such time as new leases are finalized.

9. City Council request the Executive Director, Housing Secretariat and the Executive Director, Corporate Real Estate Management to develop and formalize internal city processes to expedite, well in advance of the expiry of Community Housing Provider ground leases, the negotiation and extension of such leases and the development of new operating agreements in accordance with the Lease Policy Framework in Attachment 2.

Enhancements to the Multi-Unit Residential Acquisitions Program (MURA)

10. City Council authorize a waiver of building permit fees and an exemption from taxation for municipal and school purposes for up to 500 new affordable rental or co-operative units annually to a maximum of 1,500 units to be secured by 2027 through the Multi-Unit Residential Acquisitions Program for 99-year terms by the municipal housing facility agreements (the City’s “Contribution Agreements”).

11. City Council authorize the Controller to refund any taxes paid after the effective date of the exemption from taxation for municipal and school purposes as set out in the Contribution Agreement.

12. City Council authorize the City Solicitor to introduce the necessary bills to give effect to City Council’s decision.

13. City Council authorize the Executive Director, Housing Secretariat, to amend the Multi-Unit Residential Acquisition program as follows:

a. Expand the eligibility criteria to enable the program to support not-for-profit housing providers (including community land trusts and co-operatives) and Indigenous housing providers with an exemption from taxation for municipal and school purposes and waivers of building permit fees where such not-for-profit and Indigenous housing providers are able to purchase properties using non-City acquisition programs, subject to the acquisition meeting the eligibility criteria under MURA and the not-for-profit and Indigenous housing providers agree to enter into a Contribution Agreement with the City, and provided these units are within the City Council approved maximum program limit set out in Part 10 above.

b. Expand the eligibility criteria to enable Multi-Unit Residential Acquisition to support not-for-profit housing providers (including community land trusts and co-operatives) and Indigenous housing providers with the purchase of condominium units to be operated as affordable rental housing, for a period of 99 years consistent with the Multi-Unit Residential Acquisition program requirements, in developments that will be completed within one year of applying for funding, and such further criteria, requirements, terms and conditions deemed necessary by the Executive Director, Housing Secretariat.

c. Revise the residential building requirements for eligible properties by removing the 6-unit minimum and 60-unit maximum limits provided that the City Council-approved maximum funding allocation limit of $200,000.00 per unit and up to $12,000,000.00 for the building is maintained.

14. City Council authorize the Executive Director, Housing Secretariat to issue a request for proposal on an annual basis and to select not-for-profit housing providers (including community land trusts and co-operatives) and Indigenous housing providers to purchase or establish long-term conventional financing, renovate and operate affordable rental or non-profit co-operative housing under the revised Multi-Unit Residential Acquisition program;

15. City Council authorize the Executive Director, Housing Secretariat to negotiate and enter into on behalf of the City, a municipal housing facility agreement for housing purposes for 99 years with the successful not-for profit housing provider (including community land trusts and co-operatives) and Indigenous housing providers selected through the request for proposal process under Part 14 above to secure the financial assistance being provided and to set out the terms of the operation of the affordable rental or non-profit co-operative housing (the “Contribution Agreement”) or any related agreement to facilitate the funding process, all on such terms and conditions satisfactory to the Executive Director, Housing Secretariat and in a form approved by the City Solicitor.

16. City Council authorize the Executive Director, Housing Secretariat to execute on behalf of the City, any security or financing documents, including any postponement, confirmation of status, discharge or consent documents where and when required during the term of the Contribution Agreement, as required by normal business practices, and provided that such documents do not give rise to financial obligations on the part of the City that have not been previously approved by City Council.

Expediting the Development Review and Permitting Process

17. City Council direct the Executive Director, Development Review, in collaboration with the Chief Planner, and Executive Director, City Planning and the Chief Building Official and Executive Director, Toronto Building, to consider a Community Housing priority stream to expedite the review and approval of development applications and building permits for new Community Housing projects, and to report back to Council by Q4 2024 on the creation of this priority stream.

Strengthening the Capacity of Community Housing Providers

18. City Council direct the Executive Director, Housing Secretariat to engage with Community Housing Providers and explore opportunities for mergers, acquisitions, and strategic partnerships to achieve enhanced economies of scale and/or the ability to leverage larger asset pools to improve sustainability, increase capacity to maintain and revitalize existing assets, and to support longer-term rental housing through redevelopment and/or acquisition.

19. City Council direct the Executive Director, Housing Secretariat to establish a Community of Practice for the Multi-Unit Residential Acquisition program for Community Housing Providers and other interested organizations to help share best practices and to advise smaller organizations on responding to the annual Multi-Unit Residential Acquisition request for proposals. 

Intergovernmental Considerations

20. City Council request the Government of Canada and the Canada Mortgage and Housing Corporation (CMHC) to consider enhancing its grant and financing programs, including the Affordable Housing Fund, to support the City’s achievement of housing targets and make them more accessible by Community Housing Providers through:

a. Aligning program requirements with the Ontario Building Code requirements for energy efficiency and accessibility when Canada Mortgage and Housing Corporation has contributed less than other project partners.

b. Increasing the forgivable loan amount that non-profit organizations are eligible to receive based on the cost of repairs and renovations in the Toronto market.

c. Providing a direct funding allocation to municipalities to enable targeted outreach and support for Community Housing Providers with limited capacity who need help to repair, renew, and upgrade their existing portfolios.

21. City Council request the Government of Ontario to support the implementation of the Community Housing Strategy, which is also necessary to support delivery of the provincial More Homes Built Faster plan and the Community Housing Renewal Strategy targets, by:

a. allocating between $500 million and $800 million per year in grant funding to Toronto over the next seven years to develop new housing, including new community housing;

b. providing access to $6.5 billion to $8 billion in in low-cost financing/re-payable loans to Toronto over the next seven years;

c. allowing residents of community housing projects that are exempted from taxation for municipal and school purposes to be eligible for the Ontario Energy and Property Tax Credit component of the Ontario Trillium Benefit;

d. continuing to support improvements to the community housing stock to be in a better state of repair through programs such as the Canada-Ontario Community Housing Improvement Program;

e. enhancing funding commitments to sector support agencies such as the Ontario Non-Profit Housing Association and the Co-operative Housing Federation of Toronto to provide consulting services and support to Community Housing Providers to successfully transition to a new operating framework with the City of Toronto.

In Toronto, Community Housing (or non-market housing) refers to social and affordable housing that is owned and/or operated by non-profit housing organizations (including community land trusts), non-profit housing co-operatives ("Co-ops"), and Indigenous housing providers (collectively referred to as “Community Housing Providers”), along with the Toronto Community Housing Corporation (TCHC) and the Toronto Seniors Housing Corporation (TSHC). Community Housing is typically developed and operated with publicly funded capital contributions, and ongoing rental subsidies. Furthermore, it is a critical segment of the housing continuum and provides rental housing options for low-and-moderate-income households.

In addition to over 57,500 homes provided by Toronto Community Housing Corporation and Toronto Seniors Housing Corporation, there are currently over 200 Community Housing Providers in Toronto that operate over 40,000 subsidized Rent-Geared-To-Income (RGI) and affordable homes. About 75% of this stock was built prior to 1987 utilizing federal and provincial funding programs. Action from all orders of government is urgently needed to preserve and modernize these aging homes.

Recognizing the need to accelerate efforts to maintain the city’s Community Housing stock, in March 2023, through Item - 2023.EX3.1, “Housing Action Plan 2022-2026 ("HAP") and in November 2023, through Item - 2023.EX9.3 - “Generational Transformation of Toronto’s Housing System to Urgently Build More Affordable Homes”, City Council directed staff to report back on a strategy to modernize and grow the Community Housing sector, and provide additional support for Community Housing Providers.

The report responds to Council’s requests and recommends a new Community Housing Sector Modernization and Growth Strategy ("the Strategy") aimed at:

• protecting the city's existing Community Housing stock through preserving the assets as well as maintaining affordability;
• creating net new Community Housing that will support the City in achieving its target of approving 65,000 rent-controlled homes by 2030; and
• improving access to housing opportunities for low-and-moderate income households, particularly Indigenous residents and those from equity-deserving groups.

The proposed Strategy, included as Attachment 1, encompasses six key initiatives to achieve these objectives, including:

1. A New Regulatory and Funding Framework to Maintain Homes Operated by Community Housing Providers Under Part VII.1 of the Housing Services Act – The new regulatory framework will allow the City, as Service Manager, to secure partnerships that will continue to offer affordable and deeply affordable housing with Community Housing Providers operating under Part VII of the Housing Services Act whose mortgages are expiring.

2. A New Policy Framework to Guide Ground Lease Arrangements Between the City of Toronto and Community Housing Providers – A number of Community Housing Providers operate buildings on land leased from the City and need a lease extension, renewal or a new lease in order to continue to operate, or to refinance buildings and complete required upgrades/major repairs/modernization. The City is also focused on offering more of its land, through long-term leases to the Community Housing sector to scale up the delivery of non-market homes. A new policy framework is proposed in Attachment 2 to guide lease arrangements and ensure a consistent approach for both the City and Community Housing Providers as it relates to new leases, extensions and renewals.

3. Program Enhancements and Additional Financial Support to Acquire and Create New Community Housing – This report recommends changes to the Multi-Unit Residential Acquisition (MURA) program that would enable Community Housing Providers to use Multi-Unit Residential Acquisition funding to acquire a wider range of housing types, including larger buildings (those with greater than 60 units), smaller buildings (those with less than 6 units) such as multi-tenant homes, and condominium units.

4. Encouraging Development and Intensification Opportunities – The City will work with organizations who own land to identify opportunities to create new Community Housing. In addition, staff will continue to advance a number of changes to the Official Plan, zoning by-laws, and planning guidelines through the Housing Action Plan that would result in greater as-of-right development permissions, making it more predictable, simpler and quicker to add new housing supply.

5. An Expedited Development and Permitting Review Process for Community Housing Applications – This report recommends considering the establishment of a Community Housing Priority Stream to expedite development and permitting review and approvals of eligible Community Housing projects, and the utilization of all available tools to expedite zoning approvals.

6. Partnerships to Support Community Housing Sector Action to Build New and Modernize Existing Homes – Enhancing the development, asset management and governance capacity of Community Housing Providers will entail working with sector partners to develop resources and provide advisory services, and to explore opportunities for mergers, acquisitions and strategic partnerships between organizations to achieve economies of scale and/or to be able to leverage a larger asset pool for accessing capital required for new developments and repairs that will support longer-term growth and sustainability. The City will leverage its existing relationships within the sector and explore new partnerships and collaboration opportunities with organizations that can provide advisory services and support to Community Housing Providers.

The measures in this report are complemented by the “Launching the Rental Housing Supply Program” report that is to be considered by the Planning and Housing Committee at the same meeting on June 13, 2024. This complementary report recommends additional financial support for new Community Housing through a proposed three-year, Community Housing Pre-Development Fund Pilot. Through this proposed pilot, Community Housing Providers can apply for financial assistance to cover the cost of pre-development activities that are crucial in supporting new community housing projects.

The Strategy recommended in this report takes a comprehensive approach to sustain, modernize and grow the Community Housing sector in Toronto. It was informed by engagement with Community Housing Providers, the Housing Secretariat’s Tenant Advisory Committee, and key sector organizations such as the Ontario Non-Profit Housing Association (ONPHA), the Toronto Alliance to End Homelessness (TAEH), the Co-op Housing Federation of Toronto (CHFT), and United Way Greater Toronto (UWGT).

While the Strategy is focused on City-specific initiatives, immediate and complementary action is urgently needed from the federal and provincial governments. This includes new and enhanced investments to: grow the Community Housing sector; support low- and-moderate-income households to access and maintain their homes; improve access to supports and services; and build new affordable rental, co-operative and Rent-Geared-To-Income homes within complete communities.

New Service Agreements with Community Housing Providers under Part VII. 1 of the HSA, Whose Mortgages will be Expiring.

The proposed new Service Agreement and funding model for Part VII housing providers will better enable them to fund capital work, effectively operate buildings, and better support residents.

There is no current financial impact resulting from the Service Agreement-related recommendations in this report as existing funding within the Housing Secretariat’s budget is included to support the transition of Community Housing Providers from the Housing Services Act legislated funding model to the new service agreement funding framework. City staff will closely monitor the implementation of new service agreements and any funding adjustments that may be required will be included through the City’s annual budget process.

The provincial government announced a new regulatory framework under the Housing Services Aact to enter into a new service agreement with Part VII housing providers, allowing the City as Service Manager, to develop a new funding model to ensure these housing projects continue providing deeply affordable rents, remain financially sustainable and ensure that their assets are kept in a satisfactory state of good repair.

Over the next 10 years, 139 housing projects governed under Part VII of the Housing Services Act, have mortgages that will be ending. Upon mortgage expiry, these housing providers will be required to enter into a new agreement with the City. Regulatory amendments provide Part VII housing providers and Service Managers an option for a housing project to enter into a Service Agreement or an Exit Agreement. The City does not intend to enter into Exit Agreements with Part VII housing providers, to ensure investment in community housing is preserved and to ensure that future affordability is sustained. If a Service Agreement is not negotiated, housing projects will remain within the current Housing Services Act legislated funding model that, upon mortgage expiry, will provide less funding than is required to effectively operate and maintain housing developments.

In 2014, City Council adopted item AU16.19 – Strengthening the City’s Oversight of Social Housing Programs – allowing the City to examine providing a property tax exemption for eligible social housing providers. This report recommends granting a property tax exemption when entering into new service agreements with Community Housing Providers governed by Part VII of the Housing Service Act whose mortgages will be expiring. Granting a property tax exemption will provide these Community Housing Providers with financial relief that can support existing and emerging operating, borrowing and capital costs.

The municipal portion of the property taxes will no longer be collected once the properties become exempt. The provincial education portion of the property taxes will also no longer be required to be remitted to the province once the exemption for this portion takes effect. There are no net new financial impacts to the City resulting from these recommendations.

The Housing Secretariat will seek City Council approval of a revised Municipal Capital Housing Facility By-law and by-laws for individual eligible projects recommended for a property tax exemption which will occur upon acquisition and designation of Municipal Capital Housing Facility.

Policy Framework for Ground Leases

Some of the city’s Community Housing Providers own the land on which their building is situated, while others lease the land from a non-profit organization, faith-based group, private landlord, or the City of Toronto. The City currently has 41 leases with Community Housing Providers. Existing lease terms with the providers range from 40-99 years, with the majority of these leases coming up for renewal between 2030 and 2088.

The proposed Policy Framework for Ground Leases with Community Housing Providers detailed in Attachment 1 recommends that the City renew these leases at nominal rates (i.e. $2 per year) for a term of up to 49 years. These measures will support the housing providers in continuing to achieve our collective goal of providing affordable housing for low- and-moderate income residents.

The existing leases were provided at nominal rates or below-market rents and contribute to the overall affordability of each site. Based on an appraisal of the buildings provided by Corporate Real Estate Management staff, the current estimated market value of foregone revenue to the City from these 41 ground leases, is $15.6 million per year. However, as the City continues to develop new housing on City-owned sites that are leased to Community Housing Providers, this figure is anticipated to increase as more Community Housing properties are developed, and as land values increase over time.

As the existing leases come up for renewal or expire, renewing or extending these leases or entering into new leases at nominal rates, as recommended in the Policy Framework, would result in these revenues continuing to be foregone by the City in exchange for the continued delivery of affordable housing to Toronto residents. However, any increase in these Community Housing Provider’s leasing costs would create net new costs for providers and may necessitate the need for additional funding from the City or other orders of government to maintain on-going affordability for residents.

This report recommends that staff prioritize the renewal of ground leases with Community Housing Providers that are expiring within the next 12 months including Beech Hall Housing Co-operative and Alexandra Park Co-operative, and further that staff, through this work, develop processes that will expedite the renewal of ground leases in advance of future expiries.

In October 1965, Woodgreen Community Housing Incorporated (“Woodgreen”) and the City entered into an agreement for the development and operation of 160 social housing units for low-income seniors at 444 Logan Avenue, on land conveyed to it by the City. Under this agreement, Woodgreen was to re-convey the property to the City on July 1, 2017. The City has subsequently extended the time period for re-conveyance to August 1, 2024, as the City and Woodgreen have been negotiating the terms and conditions for Woodgreen’s continued use of the property over the long-term. A further two-year extension to August 1, 2026 is being requested to enable additional time for the City to finalize negotiations with Woodgreen.

Proposed Changes to the Multi-Unit Residential Acquisition (MURA) Program

Currently, Multi-Unit Residential Acquisition provides City funding and incentives in the form of tax relief, planning and building permit fee waivers for non-profit and Indigenous housing organizations to support the purchase, renovation/conversion and refinancing of market rental housing to create permanently affordable homes. These homes are secured as affordable housing for at least 99 years and the program is a key lever towards preserving the affordability of the City’s rental housing stock.

Multi-Unit Residential Acquisition was launched in 2021 with an annual budget of $10 million and an annual incentives contribution limit of 100 units, with a maximum incentives contribution limit of 500 units. Included in the 2024 Operating Budget for Housing Secretariat is dedicated funding of $51 million towards Multi-Unit Residential Acquisition with anticipated program budgets of $30 million in 2025 and $20 million in 2026 (for a total of $101 million over three years). As a result of this increased funding, this report recommends increasing the annual unit limit to 500 units and the program maximum to 1,500 units (an increase of 1,000 units). Table 1 below details the estimated City financial incentives for the proposed 1,000 unit increase to the Multi-Unit Residential Acquisition program. These financial incentives are not a direct payment from the City but rather foregone revenues.

Table 1 - Estimated City Financial Incentives for Increase in Units

* calculated using 2024 building permit fee rates and 58m²/apartment. No planning application fees, development charges or parkland dedication fees are expected for these acquisitions and renovations.

** calculated using 2024 rates.

A further breakdown of the estimated value of the property tax exemptions for municipal and school purposes is summarized in Table 2 below. Exemptions will occur after acquisition and designation under a municipal housing facility by-law, and actual value will depend on the value of the property assessment and property tax rate of the given year. The educational tax exemptions would have no net impact to the City as they are remitted to the Province.

Table 2 – Estimated Property Tax Exemption Value for 1,000 Units*

*calculated using 2024 rates.

This report also recommends that Multi-Unit Residential Acquisition be updated to include a separate stream that would provide eligible proponents with Multi-Unit Residential Acquisition incentives only, in the form of property tax relief and building permit fee waivers, in cases where Multi-Unit Residential Acquisition funding is not provided. Enabling such “stand-alone” incentives would allow the program to support non-profit housing acquisitions in cases where other primary funding is available, such as the new $1.5 billion Canada Rental Protection Fund, as announced by the federal government as part of their 2024 Budget. A program application process, and a standard MURA Contribution Agreement would continue to be required.

The report also recommends removing the Multi-Unit Residential Acquisition program parameters regarding the six-unit minimum building size and maximum 60-unit building size. Regardless of the building size, the maximum funding amount an individual building could obtain would remain at $12 million, and the maximum funding allocation limit of $200,000 per unit would be maintained.

The Chief Financial Officer and Treasurer has reviewed this report and agrees with the financial impact information.

The Director, Court Services, recommends that:

1. City Council receive the 2023 Annual Report from the Chair of the Toronto Local Appeal Body, contained in Attachment 1 to the report for information.

Enacted on May 3rd, 2017, the Toronto Local Appeal Body (TLAB) is an independent, quasi-judicial tribunal established through City of Toronto Municipal Code Chapter 142, Local Appeal Body, the City of Toronto Act, and other provincial legislation. The TLAB has all the powers of the Ontario Land Tribunal related to the hearing of appeals to Committee of Adjustment decisions for minor variance and consent applications under subsections 45(12), 53(14), 53(19) and 53(27) of the Planning Act.

The TLAB is composed of fourteen members including the Chair, Vice-Chair, and twelve Panel Members who are nominated by an impartial citizen-member nominating panel with recommendations for appointments submitted to City Council. City Council appoints Members of the TLAB for a four-year term of office.

There are no financial implications arising from this report.

The Interim Chief Planner and Executive Director, City Planning recommends that:

1. City Council approve the grant awards for the 2024 Toronto Heritage Grant Program for the following 10 heritage properties, to assist grant recipients in funding the scope of conservation work generally described in Attachment 1 of this report.

288 Annette Street

407 Carlton Street

1 Heritage Place

16 Kimberley Avenue

69 Pembroke Street

231 Seaton Street

572-574 Spadina Avenue

550 Bayview Avenue

201 Cowan Avenue

384 Sunnyside Avenue

2. City Council direct that the use of the grant awards outlined in Recommendation 1 of this report be limited to only the conservation work approved by the Chief Planner and Executive Director, City Planning, and that the issuing of the grant awards be subject to the grant recipient satisfying all conditions as set out in the Letter of Understanding between the City and the grant recipient.

This report recommends the approval of ten grants totalling $317,000.00 under the Toronto Heritage Grant Program. The recommended recipients will generate approximately $706,926.13 in private investment for work to conserve irreplaceable cultural heritage resources that contribute to the City's social and economic prosperity by maintaining Toronto's unique sense of place.

The Toronto Heritage Grant Program provides matching grant funds for eligible heritage conservation work on residential properties or tax-exempt properties in the City of Toronto designated under Part IV or V of the Ontario Heritage Act (OHA). Applicants may receive a grant once every five years for up to 50% of the cost of eligible conservation work. Owners of house form buildings may receive up to $10,000.00 or, if replacing an entire cedar or slate roof assembly, up to $20,000.00 every ten years.

Owners of non-house form buildings and any tax-exempt properties including house form buildings may be eligible for a grant equivalent to 50% of the cost of eligible conservation work, with no maximum limit.

The Toronto Heritage Grant Program has a budget of $317,000.00 in the City Planning 2024 Operating Budget and is administered by Heritage Planning, City Planning.

The properties that have been recommended for a grant award vary in size and location across Toronto. Several grant projects are at residential properties located in Heritage Conservation Districts (HCDs), including properties located within the Cabbagetown North, Garden District, and Harbord Village Phase II Heritage Conservation Districts. In addition, there are a few notable Part IV-designated properties benefitting from heritage grants this year, including Don Valley Brickworks and Epiphany and St. Mark, Parkdale.

This report is seeking Council approval to provide $317,000 of grant awards in 2024 as part of the Toronto Heritage Grant Program, which supports eligible heritage conservation work in the City.

The 2024 Operating Budget for City Planning includes a base budget of $317,000.00 for the Toronto Heritage Grant Program, which will fund the grant awards recommended in this report.

The Chief Financial Officer and Treasurer has reviewed this report and agrees with the information as presented in the Financial Impact Section.

The Toronto Preservation Board recommends that:

1. City Council approve the grant awards for the 2024 Toronto Heritage Grant Program for the following 10 heritage properties, to assist grant recipients in funding the scope of conservation work generally described in Attachment 1 to the report (May 21, 2024) from the Senior Manager, Heritage Planning, Urban Design, City Planning.

288 Annette Street

407 Carlton Street

1 Heritage Place

16 Kimberley Avenue

69 Pembroke Street

231 Seaton Street

572-574 Spadina Avenue

550 Bayview Avenue

201 Cowan Avenue

384 Sunnyside Avenue

2. City Council direct that the use of the grant awards outlined in Recommendation 1 above to the report (May 21, 2024) from the Senior Manager, Heritage Planning, Urban Design, City Planning be limited to only the conservation work approved by the Chief Planner and Executive Director, City Planning, and that the issuing of the grant awards be subject to the grant recipient satisfying all conditions as set out in the Letter of Understanding between the City and the grant recipient.

 At its meeting on June 5, 2024 the Toronto Preservation Board considered Item PB19.6 and made recommendations to City Council.

Summary from the report (May 21, 2024) from the Acting Senior Manager, Heritage Planning, Urban Design, City Planning:

This report recommends the approval of ten grants totalling $317,000.00 under the Toronto Heritage Grant Program. The recommended recipients will generate approximately $706,926.13 in private investment for work to conserve irreplaceable cultural heritage resources that contribute to the City's social and economic prosperity by maintaining Toronto's unique sense of place.

The Toronto Heritage Grant Program provides matching grant funds for eligible heritage conservation work on residential properties or tax-exempt properties in the City of Toronto designated under Part IV or V of the Ontario Heritage Act (OHA). Applicants may receive a grant once every five years for up to 50 percent of the cost of eligible conservation work. Owners of house form buildings may receive up to $10,000.00 or, if replacing an entire cedar or slate roof assembly, up to $20,000.00 every ten years.

Owners of non-house form buildings and any tax-exempt properties including house form buildings may be eligible for a grant equivalent to 50 percent of the cost of eligible conservation work, with no maximum limit.

The Toronto Heritage Grant Program has a budget of $317,000.00 in the City Planning 2024 Operating Budget and is administered by Heritage Planning, City Planning.

The properties that have been recommended for a grant award vary in size and location across Toronto. Several grant projects are at residential properties located in Heritage Conservation Districts (HCDs), including properties located within the Cabbagetown North, Garden District, and Harbord Village Phase II HCDs. In addition, there are a few notable Part IV-designated properties benefitting from heritage grants this year, including Don Valley Brickworks and Epiphany and St. Mark, Parkdale.

The Interim Chief Planner and Executive Director, City Planning recommends that:

1. City Council state its intention to designate the property at 522 University Avenue under Part IV, Section 29 of the Ontario Heritage Act in accordance with the Statement of Significance for 522 University Avenue (Reasons for Designation) attached as Attachment 1 to the report, May 27, 2024, from the Interim Chief Planner and Executive Director, City Planning.

2. If there are no objections to the designation, City Council authorize the City Solicitor to introduce the Bill in Council designating the property under Part IV, Section 29 of the Ontario Heritage Act.

This report recommends that City Council state its intention to designate the property at 522 University Avenue under Part IV, Section 29 of the Ontario Heritage Act for its cultural heritage value according to the Statement of Significance, including a description of Heritage Attributes, found in Attachment 1.

Located on the southwest corner of University Avenue and Elm Street, the property at 522 University Avenue contains a 15-storey office building constructed between 1971 and 1974. Designed by the prominent architect John C. Parkin for the National Life Assurance Company of Canada, the Modernist building is characterized by the uniform treatment of its tower façades in precast concrete, and a double-height, wedge-shaped colonnade at three sides which extend the public space along University Avenue, Elm Street and Simcoe Street. The building contributes to the monumental streetscape of University Avenue as developed in the post-WWII era and the site at 522 University Avenue represents the location of Toronto-based National Life Assurance Company of Canada's offices for nearly 95 years.

Staff have determined that the property at 522 University Avenue has cultural heritage value, meeting a total of 5 of 9 of the Ontario Regulation 9/06 criteria prescribed for municipal designation under Part IV, Section 29 of the Ontario Heritage Act. A property may be designated under Part IV, Section 29 of the Ontario Heritage Act, if it meets two or more of the nine criteria.

As of July 1, 2021, Section 29(1.2) of the Ontario Heritage Act restricts City Council's ability to give notice of its intention to designate a property under the Act to within 90 days of a "Prescribed Event".

The property at 522 University Avenue is subject to a Prescribed Event. On August 30, 2022, the City received Zoning By-law Amendment and Site Plan applications related to the proposed redevelopment of the subject property (22 192156 STE 11 OZ and 22 192155 STE 11 SA). A Cultural Heritage Evaluation Report (CHER) authored by ERA Architects and dated January 10, 2024 was submitted in support of the application and concludes that the property at 522 University Avenue meets 4 of the 9 criteria under Ontario Regulation 9/06 criteria prescribed for municipal designation under Part IV.  

The City Clerk sent a Notice of Complete Application on September 23, 2022.

The owner provided a waiver to extend the time period for Council to make a decision which expires on July 31, 2024. In order to meet prescribed timelines under the Ontario Heritage Act, Council must make a decision at its June 26-28, 2024 meeting to provide sufficient time for the City Clerk to issue a notice of intention to designate before the waiver expires.

City Planning confirms there are no financial implications resulting from the recommendations included in this report in the current budget year or in future years.

The Chief Financial Officer and Treasurer has reviewed this report and agrees with the information as presented in the Financial Impact Section.

The Toronto Preservation Board recommends that:

1.  City Council state its intention to designate the property at 522 University Avenue under Part IV, Section 29 of the Ontario Heritage Act in accordance with the Statement of Significance for 522 University Avenue (Reasons for Designation) attached as Attachment 1 to the report (May 21, 2024) from the Acting Senior Manager, Heritage Planning, Urban Design, City Planning.

2.  If there are no objections to the designation, City Council authorize the City Solicitor to introduce the Bill in Council designating the property under Part IV, Section 29 of the Ontario Heritage Act.

 At its meeting on June 5, 2024 the Toronto Preservation Board considered Item PB19.1 and made recommendations to City Council.

Summary from the report (May 21, 2024) from the Acting Senior Manager, Heritage Planning, Urban Design, City Planning:

 
This report recommends that City Council state its intention to designate the property at 522 University Avenue under Part IV, Section 29 of the Ontario Heritage Act for its cultural heritage value according to the Statement of Significance, including a description of Heritage Attributes, found in Attachment 1.

Located on the southwest corner of University Avenue and Elm Street, the property at 522 University Avenue contains a 15-storey office building constructed between 1971 and 1974. Designed by the prominent architect John C. Parkin for the National Life Assurance Company of Canada, the Modernist building is characterized by the uniform treatment of its tower façades in precast concrete, and a double-height, wedge-shaped colonnade at three sides which extend the public space along University Avenue, Elm Street and Simcoe Street. The building contributes to the monumental streetscape of University Avenue as developed in the post-WWII era and the site at 522 University Avenue represents the location of Toronto-based National Life Assurance Company of Canada's offices for nearly 95 years.

Staff have determined that the property at 522 University Avenue has cultural heritage value, meeting a total of 5 of 9 of the Ontario Regulation 9/06 criteria prescribed for municipal designation under Part IV, Section 29 of the Ontario Heritage Act. A property may be designated under Part IV, Section 29 of the Ontario Heritage Act, if it meets two or more of the nine criteria.

As of July 1, 2021, Section 29(1.2) of the Ontario Heritage Act restricts City Council's ability to give notice of its intention to designate a property under the Act to within 90 days of a "Prescribed Event".

The property at 522 University Avenue is subject to a Prescribed Event. On August 30, 2022, the City received Zoning By-law Amendment and Site Plan applications related to the proposed redevelopment of the subject property (22 192156 STE 11 OZ and 22 192155 STE 11 SA). A Cultural Heritage Evaluation Report (CHER) authored by ERA Architects and dated January 10, 2024 was submitted in support of the application and concludes that the property at 522 University Avenue meets 4 of the 9 criteria under Ontario Regulation 9/06 criteria prescribed for municipal designation under Part IV.  

The City Clerk sent a Notice of Complete Application on September 23, 2022. The owner provided a waiver to extend the time period for Council to make a decision which expires on July 31, 2024. In order to meet prescribed timelines under the Ontario Heritage Act, Council must make a decision at its June 26-28, 2024 meeting to provide sufficient time for the City Clerk to issue a notice of intention to designate before the waiver expires.

The Interim Chief Planner and Executive Director, City Planning recommends that:

1. The Planning and Housing Committee receive this report for information.

The City Planning Division monitors development activity in Toronto. This report and the attached bulletin summarizes development activity over the past five years, offering insights into the city's growth and potential urban changes ahead.

The 2023 Development Pipeline is the largest recorded to-date and contains 800,889 residential units and 13,958,670 m² of non-residential gross floor area (GFA). Of the total residential units, 87% are not yet built and are either under review, in the development approvals process, or under construction. If all these residential units were completed and occupied, enough housing would be provided to accommodate an additional 1.12 million people over Toronto's 2023 population.

Between 2019 and 2023, City Council granted Official Plan Amendment or Rezoning approval to 38,428 units per year. Over the same period, 21,534 units per year were issued approval on a Site Plan Control Application and 17,576 units per year were built. Toronto's share of housing completions in the Greater Toronto Area has grown consistently and now delivers half of the region's new housing supply.

The Development Pipeline demonstrates the diversity and geographic distribution of non-residential development in Toronto, providing opportunities to accommodate future employment across the city. With 1,736,850 m² of industrial land uses proposed, Employment Areas remain economically resilient and are attracting new investment.

The Development Pipeline also illustrates the continuing changes to Toronto's complex and evolving urban structure. The magnitude of proposed development accentuates the importance of comprehensive long-range planning to manage growth, infrastructure and service delivery.

There are no financial implications resulting from the recommendations included in the report in the current budget year or in future years.

The Chief Financial Officer and Treasurer has reviewed this report and agrees with the information as presented in the Financial Impact Section.

Councillor Lily Cheng, seconded by Councillor Jennifer McKelvie, recommends that:

1. City Council request the Chief Planner and Executive Director, City Planning in consultation with the President, Toronto Parking Authority, to consider the greater need for visitor parking in suburban contexts compared to downtown as part of the ongoing review of the parking requirements in the Zoning By-law and consider the potential impact of Bill 185 in their analysis, and report back no later than the fourth quarter of 2024.

City Council on May 22 and 23, 2024, referred Motion MM18.17 to the Planning and Housing Committee for consideration.

As increasingly new developments are being approved with minimal visitor parking. This will present some foreseeable challenges, especially in the suburbs where there is neither permitted street parking, nor sufficient public parking lots available. While owners choose to purchase a unit with or without a parking spot, they cannot choose whether friends and family live near enough to transit to visit without the use of a car. Having sufficient visitor parking is very important to ensure that people with visitors have somewhere for their visitors to park. Further, we want to ensure there is sufficient visitor parking to encourage social interactions rather than presenting visitor parking challenges that could exacerbate the already serious social isolation that is happening in our city.

For example, recently a developer in Willowdale proposed a 44-storey tower with 513 units with only 7 visitor parking spots, which we negotiated up to 14 spots. I believe this will still be too low to meet the demand of the residents of the building in an inner-suburb context. The impact of limited visitor parking will spill over to the surrounding areas resulting in illegal parking or having no parking left for visitors of those who live in longstanding surrounding communities. Taxpayers will have to absorb the costs of dealing with these challenges created by the cost savings enjoyed by developers in offering limited visitor parking in new high-density developments.

This motion requests staff to look into the greater need for visitor parking in suburban wards as part of their ongoing review of the parking requirements in the Zoning By-law.