1555-1575 Queen Street East - Authority to Amend Section 37 and 111 Agreements to Exempt Canada Mortgage and Housing Corporation, Canada Mortgage and Housing Corporation Approved Lenders and Subsequent Transferees from Certain Obligations

The project also includes the provision of 120 replacement social housing units to be located in the TCHC Building ("Rental Replacement Units"). Subsequent to City Council's approval of the applications, TCHC and RC Ashbridge Inc. (Context Summerville) entered into a section 37 agreement with the City dated October 26, 2020 (the "Section 37 Agreement") and an agreement pursuant to section 111 of the City of Toronto Act, 2006 dated July 21, 2021 (the "Section 111 Agreement"). These agreements secured obligations relating to the provision of the New Affordable Units, the City Units and the Rental Replacement Units. This report seeks authority to amend the Section 37 Agreement and Section 111 Agreement for the Subject Site to exempt Canada Mortgage and Housing Corporation (CMHC), CMHC approved lenders and subsequent transferees from Section 37 and Section 111 obligations relating to the TCHC Building and City Units as proposed on the Subject Site. The obligations relating to the TCHC building and City Units in the Section 37 Agreement and Section 111 Agreement will remain obligations of the owners of the TCHC lands and the owners of the market lands.

Add the following definitions to the Section 37 Agreement and the Section 111 Agreement: "Approved Lender" means a lender designated as an approved lender by CMHC in accordance with the National Housing Act (Canada) and the regulations thereunder that is a mortgagee of the CMHC Financed Lands pursuant to a certificate of insurance issued by CMHC. "CMHC" means Canada Mortgage and Housing Corporation established by the Canada Mortgage and Housing Corporation Act, R.S.C. 1985, c. C-7, as amended. "CMHC Financed Lands" means the lands financed by CMHC including the construction and operation of the Eastern Market Building, which includes the Developer-owned Affordable Rental Units, certain ground floor commercial space and related facilities in the building. b. Add the following paragraph to the Section 37 Agreement and the Section 111 Agreement: "Notwithstanding anything in this Agreement to the contrary, CMHC, an Approved Lender, any transferee from CMHC or an Approved Lender, or any subsequent successors in title to the CMHC Financed Lands will not be responsible for any obligations pertaining to the City/TCHC Units and the Replacement Social Housing Units. For clarity, for the purpose of this paragraph, subsequent successors in title to the CMHC Financed Lands only pertains to owners that follow CMHC, an Approved Lender or their transferees on title." 2. City Council direct the City Solicitor to prepare such amendments to the registered Section 37 Agreement and Section 111 Agreement and any other such amendments determined necessary to implement City Council's decision on this matter, on terms satisfactory to the Chief Planner and Executive Director, City Planning and in a form satisfactory to the City Solicitor.