Acquisition of New Affordable Rental Housing at 1555- 1575 Queen Street East (Don Summerville)

At its meeting of July 16 and 17, 2019, City Council adopted, with amendments, Item PH7.4, "A New Approvals Framework for Toronto Community Housing Corporation Revitalization Projects", which outlined an initial development proposal for the Don Summerville buildings. The redevelopment plan proposes a unique revitalization model to intensify the site and create a mixed-income, mixed-use, and mixed tenure community. The tenures will be mixed within each of the three new buildings, helping to create an inclusive and well-integrated community. On July 28, 2020, through Item TE16.5, "1555-1575 Queen Street East - Official Plan and Zoning Amendment, Part Lot Control, and Rental Housing Demolition and Conversion - Final Report", Council approved, with amendments and conditions, the final development proposal for the site. Through revitalization, a total of 766 residential units will be developed, consisting of 120 replacement rent-geared-to-income units, 100 affordable rental units, 188 market rental units, and 363 market condominium units. The project will also include retail space and new indoor and outdoor amenity spaces. Almost 29% of the total residential units created through the revitalization, including the rent-geared-to-income and the affordable rental units, will be allocated for the provision of affordable housing. As part of report PH7.4, Council approved funding to support the acquisition of 32 residential units to be purchased and owned by the City, for the purpose of providing permanently affordable rental housing. The 32 affordable rental units (included in the total 100 affordable rental units to be developed onsite) will be operated by a non-profit co-operative housing provider, to be selected through a request for proposal process. Council also directed staff to report back to obtain the authorities required to advance the purchase transaction and the request for proposal process. This report responds to Council's request. City staff have negotiated the terms of an agreement of purchase and sale, subject to Council approval, and the report seeks authorization for the City to finalize the transaction. This report also recommends Council approval for staff to undertake a competitive process to select a non-profit co-operative housing provider to lease and operate the City's 32 affordable rental units for a 99-year term.

2. City Council authorize the Executive Director, Corporate Real Estate Management, to execute the Agreement and any ancillary agreements and documents under the Agreement on behalf of the City of Toronto. 3. City Council authorize the Executive Director, Corporate Real Estate Management, to administer and manage the transaction in consultation with the Executive Director, Housing Secretariat, including the provision of any consents, approvals, waivers, and notices, provided that they may, at any time, refer consideration of any such matters (including their content) to City Council for consideration and direction. 4. City Council declare surplus the 32 units at the property municipally known as 1555 - 1575 Queen Street East, effective as of the date the City acquires ownership of the 32 units at 1555 - 1575 Queen Street East, with the intended manner of disposal to be by way of a long term lease to a not for profit affordable rental housing provider and direct staff to take all steps necessary to comply with the City's real estate disposal process set out in Municipal Code Chapter 213, Real Property, Sale of. 5. City Council authorize and direct the appropriate City officials to undertake a competitive process for the selection of a not for profit affordable rental housing provider to operate affordable rental housing at the 32 units at 1555 - 1575 Queen Street East for a minimum period of at least 99 years, under a long term lease with the City. 6. City Council authorize the Executive Director, Housing Secretariat, to: a. negotiate, enter into, and execute on behalf of the City, a project development agreement, with RC Ashbridge Inc. and Toronto Community Housing Corporation, and a shared facilities agreement on terms and conditions satisfactory to the Executive Director, Housing Secretariat and in a form approved by the City Solicitor; and b. negotiate, enter into, and execute on behalf of the City, a municipal housing facility agreement (the "Contribution Agreement"), with the selected not for profit affordable rental housing provider, or a related corporation, to secure the financial assistance provided by the City in the acquisition of the units 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; and c. execute, on behalf of the City, any security or financing documents or any other documents required to facilitate the funding process, including any documents required by the selected not for profit affordable rental housing provider, or a related corporation or its mortgagee(s) to complete the acquisition financing and any subsequent refinancing, where and when required during the term of the municipal housing facility agreement. 7. City Council authorize severally each of the Executive Director, Housing Secretariat and the General Manager, Shelter, Support and Housing Administration to execute, on behalf of the City, consents, approvals, agreements or other documents that are ancillary to any security or financing documents required by the selected not for profit affordable rental housing provider, or a related corporation, of the site to secure conventional financing and subsequent refinancing, including any postponement, confirmation of status, discharge or consent documents where and when required during the term of the municipal housing facility 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 Executive Director, Housing Secretariat and the General Manager, Shelter, Support and Housing Administration to provide any consent necessary to transfer or encumber the site and to negotiate and enter into any agreements or other documents required to effect any future transfer or assignment of the site and the associated legal agreements with the City to another legal entity, on terms and conditions satisfactory to them and in a form approved by the City Solicitor.