2019 Toronto Community Housing Corporation Mortgage Renewal

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The decision

2019-10-02 · Toronto City Council · adopted

As filed

City Council on October 2 and 3, 2019, adopted the following: 1. City Council, in its capacity as Shareholder of Toronto Community Housing Corporation: a. pursuant to Section 7.4.1(a) of the City's Amended and Restated Shareholder Direction to Toronto Community Housing Corporation approve the terms for the renewal of Term Loan 1 effective November 1, 2019 as described in the Ontario Infrastructure Loan letter dated September 6, 2018 addressed to Toronto Community Housing Corporation attached as Attachment 1 to the report (September 4, 2019) from the Chief Financial Officer and Treasurer (the Loan Extension) between Toronto Community Housing Corporation as "Borrower" and Infrastructure Ontario as "Lender" for a remaining term of 24 years; and b.

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approve the extension of Toronto Community Housing Corporation's mortgage subsidy for the 679 Queen's Quay West property, based on the current monthly mortgage payment, until November 1, 2043. 2. City Council, in its capacity as shareholder of Toronto Community Housing Corporation, authorize Toronto Community Housing Corporation to enter into a 24-year extension of the term of Term Loan 1 described in the original financing agreement between Toronto Community Housing Corporation and Infrastructure Ontario dated October 18, 2013, as previously amended, with respect to two Toronto Community Housing Corporation owned properties at 931 Yonge St. and 679 Queen's Quay. 3. Subject to the satisfaction of the conditions in Parts 1 and 2 above, City Council authorize the Chief Financial Officer and Treasurer or delegate to execute on behalf of the shareholder amendments to the agreements among the City, Toronto Community Housing Corporation and Infrastructure Ontario which will provide for: a. City consent to the amended terms and conditions of Term Loan 1; and b. amended City guarantee for the repayment of all principal and interest payable by Toronto Community Housing Corporation to Infrastructure Ontario under the amended terms and conditions of Term Loan 1; on terms and conditions satisfactory to the Chief Financial Officer and Treasurer or delegate and in a form approved by the City Solicitor. 4. City Council deem the foregoing guarantee to be in the interest of the City. 5. City Council authorize the General Manager, Shelter, Support, and Housing Administration to: a. provide such Service Manager consents under the Housing Services Act, 2011 as are necessary to authorize the extended mortgage security to be provided to Infrastructure Ontario to secure Term Loan 1; b. request all necessary third party waivers, consents or other authorizations which the Service Manager is required to seek in connection with the transactions contemplated by the attached Loan Extension; and c. provide the necessary notice to the Minister of Municipal Affairs and Housing pursuant to Section 163 of the Housing Services Act, 2011. 6. City Council authorize the City Manager or the Chief Financial Officer and Treasurer or delegate to execute and deliver such other notices, consents, authorizations, approvals and agreements on behalf of the City as shareholder or service manager in order to facilitate the refinancing of the Toronto Community Housing Corporation mortgages on the properties described in the Loan Extension, including, without limitation, amendments to the Operating Agreement between the City and Toronto Community Housing Corporation.

On the agenda

As the city filed it

This report recommends that Council approve the renewal and extension of a term loan and City guarantee for the repayment of principal and interest of mortgages for two Toronto Community Housing Corporation properties at 931 Yonge Street and 679 Queen's Quay West. In 2018 Council approved an interim 1-year extension of the term loan and City's guarantee for the two mortgages, in order to allow more time to negotiate long-term financing terms for these properties.

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The extension facilitated the renewal of the five year mortgages originally taken out by Toronto Community Housing Corporation in 2013 (and set to expire in November 2018) by one additional year to November 1, 2019 with an outstanding previous balance of $13.4 million. Toronto Community Housing Corporation has now secured favourable permanent financing renewal terms for these properties with Infrastructure Ontario for a 24 year term to match with the same maturity time frame as the other Toronto Community Housing Corporation mortgages renewed in 2018. The proposed terms require that the City provide an explicit guarantee to Infrastructure Ontario for repayment of the mortgages within this proposal. This report has been prepared in consultation with staff from the Shelter, Support and Housing Administration and Toronto Community Housing Corporation.

Staff recommended

The Chief Financial Officer and Treasurer recommends that: 1. City Council, in its capacity as Shareholder of Toronto Community Housing Corporation: a. pursuant to Section 7.4.1(a) of the City's Amended and Restated Shareholder Direction to Toronto Community Housing Corporation approve the terms for the renewal of Term Loan 1 effective November 1, 2019 as described in the Ontario Infrastructure Loan letter dated September 6, 2018 addressed to Toronto Community Housing Corporation attached as Attachment 1 to this report (the Loan Extension) between Toronto Community Housing Corporation as "Borrower" and Infrastructure Ontario as "Lender" for a remaining term of 24 years; and b.

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approve the extension of Toronto Community Housing Corporation's mortgage subsidy for the 679 Queen's Quay West property, based on the current monthly mortgage payment, until November 1, 2043. 2. City Council, in its capacity as shareholder of Toronto Community Housing Authority authorize Toronto Community Housing Corporation to enter into a 24 year extension of the term of Term Loan 1 described in the original financing agreement between Toronto Community Housing Corporation and Infrastructure Ontario dated October 18, 2013, as previously amended, with respect to two Toronto Community Housing Corporation owned properties at 931 Yonge St. and 679 Queen's Quay. 3. Subject to the satisfaction of the foregoing conditions, City Council authorize the Chief Financial Officer and Treasurer or delegate to execute on behalf of the shareholder amendments to the agreements among the City, Toronto Community Housing Corporation and Infrastructure Ontario which will provide for: a. City consent to the amended terms and conditions of Term Loan 1; and b. amended City guarantee for the repayment of all principal and interest payable by Toronto Community Housing Corporation to Infrastructure Ontario under the amended terms and conditions of Term Loan 1; on terms and conditions satisfactory to the Chief Financial Officer and Treasurer or delegate and in a form approved by the City Solicitor. 4. City Council deem the foregoing guarantee to be in the interest of the City. 5. City Council, authorize the General Manager, Shelter, Support, and Housing Administration to: a. provide such Service Manager consents under the Housing Services Act, 2011 as are necessary to authorize the extended mortgage security to be provided to Infrastructure Ontario to secure Term Loan 1; b. request all necessary third party waivers, consents or other authorizations which the Service Manager is required to seek in connection with the transactions contemplated by the attached Loan Extension; and c. provide the necessary notice to the Minister of Municipal Affairs and Housing pursuant to Section 163 of the Housing Services Act, 2011. 6. City Council authorize the City Manager or the Chief Financial Officer and Treasurer or delegate to execute and deliver such other notices, consents, authorizations, approvals and agreements on behalf of the City as shareholder or service manager in order to facilitate the refinancing of the Toronto Community Housing Corporation mortgages on the properties described in the Loan Extension, including, without limitation, amendments to the Operating Agreement between the City and Toronto Community Housing Corporation.

Considered

2019-09-18 · Executive Committee · adopted
Decision as filed
The Executive Committee recommends that: 1. City Council, in its capacity as Shareholder of Toronto Community Housing Corporation: a. pursuant to Section 7.4.1(a) of the City's Amended and Restated Shareholder Direction to Toronto Community Housing Corporation approve the terms for the renewal of Term Loan 1 effective November 1, 2019 as described in the Ontario Infrastructure Loan letter dated September 6, 2018 addressed to Toronto Community Housing Corporation attached as Attachment 1 to the report (September 4, 2019) from the Chief Financial Officer and Treasurer (the Loan Extension) between Toronto Community Housing Corporation as "Borrower" and Infrastructure Ontario as "Lender" for a remaining term of 24 years; and b.
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approve the extension of Toronto Community Housing Corporation's mortgage subsidy for the 679 Queen's Quay West property, based on the current monthly mortgage payment, until November 1, 2043. 2. City Council, in its capacity as shareholder of Toronto Community Housing Authority, authorize Toronto Community Housing Corporation to enter into a 24 year extension of the term of Term Loan 1 described in the original financing agreement between Toronto Community Housing Corporation and Infrastructure Ontario dated October 18, 2013, as previously amended, with respect to two Toronto Community Housing Corporation owned properties at 931 Yonge St. and 679 Queen's Quay. 3. Subject to the satisfaction of the foregoing conditions, City Council authorize the Chief Financial Officer and Treasurer or delegate to execute on behalf of the shareholder amendments to the agreements among the City, Toronto Community Housing Corporation and Infrastructure Ontario which will provide for: a. City consent to the amended terms and conditions of Term Loan 1; and b. amended City guarantee for the repayment of all principal and interest payable by Toronto Community Housing Corporation to Infrastructure Ontario under the amended terms and conditions of Term Loan 1; on terms and conditions satisfactory to the Chief Financial Officer and Treasurer or delegate and in a form approved by the City Solicitor. 4. City Council deem the foregoing guarantee to be in the interest of the City. 5. City Council, authorize the General Manager, Shelter, Support, and Housing Administration to: a. provide such Service Manager consents under the Housing Services Act, 2011 as are necessary to authorize the extended mortgage security to be provided to Infrastructure Ontario to secure Term Loan 1; b. request all necessary third party waivers, consents or other authorizations which the Service Manager is required to seek in connection with the transactions contemplated by the attached Loan Extension; and c. provide the necessary notice to the Minister of Municipal Affairs and Housing pursuant to Section 163 of the Housing Services Act, 2011. 6. City Council authorize the City Manager or the Chief Financial Officer and Treasurer or delegate to execute and deliver such other notices, consents, authorizations, approvals and agreements on behalf of the City as shareholder or service manager in order to facilitate the refinancing of the Toronto Community Housing Corporation mortgages on the properties described in the Loan Extension, including, without limitation, amendments to the Operating Agreement between the City and Toronto Community Housing Corporation.
Clerk’s note
The Executive Committee considered Items EX8.4, EX8.8 and EX8.11 together.
2019-10-02 · Toronto City Council · adopted

On the record

The item as the City filed it

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