Implementing Tenants First: Authority to Enter Into a Municipal Capital Facilities Agreement for the Single-Family Homes being Transferred to the Non-Profit Housing Sector

Prior to TCHC entering into negotiations, the City completed an extensive due diligence process with the proponents, including reviewing the financial modeling and City funding contributions for the portfolio. To support the financial viability of these transfers and to preserve this important stock of affordable housing, it is recommended the City offer a property tax exemption for the units being transferred to CCLT and the NLT. The recommended property tax exemption requires that the Municipal Capital Facilities By-Law be updated so this portfolio of single-family homes is eligible as a municipal housing project facility. This report seeks Council authority to enter into a municipal capital facility agreement with the non-profit housing providers for the purpose of providing the property tax exemption as well as other site-specific exemptions. This request is in alignment with the other elements of the by-law, and with the City's Community Housing Partnership Renewal Program. In exchange for the property tax exemptions, the monthly occupancy costs will be set at or below 90% of Average Market Rents. The majority of the units are currently and will remain deeply affordable through rent supplements. The property tax exemption will support the successful transfer of these homes to the non-profit housing sector.

(the City's Contribution Agreement) with the housing providers described in Table 2 in the Financial Impact section of this report to secure affordable housing in accordance with the updated Municipal Capital Facilities By-Law, (by-law 1756-2019 as revised by Recommendation 1), in return for the exemption from taxation for municipal and school purposes, on terms and conditions satisfactory to the General Manager, Shelter Support and Housing Administration and in a form approved by the City Solicitor. 3. City Council authorize an exemption from taxation for municipal and school purposes for the properties described in Attachment 2 and periods of time described in Table 2 in the Financial Impact section this report, with the tax exemption being effective from the "Effective Date" of the City's Contribution Agreement. 4. City Council authorize the Controller to cancel or refund any taxes paid after the Effective Date of the City's Contribution Agreement. 5. City Council direct the City Clerk to give written notice of each By-law authorizing the municipal housing facility agreements to the Minister of Finance, and written notice of each By-law authorizing an exemption from taxation for municipal and school purposes to the Municipal Property Assessment Corporation, and to the Toronto District School Board, the Toronto Catholic District School Board, le Conseil scolaire Viamonde, and le Conseil scolaire catholique MonAvenir, as appropriate.