Growth Funding Tools - Development Charges

to amend the draft Development Charge By-law in Attachment 1 to the report (June 28, 2022) from the Chief Financial Officer and Treasurer, and the Chief Planner and Executive Director, City Planning, such that the development charge rates for secured purpose built rental housing and Inclusionary Zoning projects that will be effective on August 15, 2022 will apply, including indexing, for the term of the current Development Charges by-law. 3. City Council amend the Development Charges By-law in Attachment 1 to the report (June 28, 2022) from the Chief Financial Officer and Treasurer, and the Chief Planner and Executive Director, City Planning to exempt from the payment of development charges: a. up to one residential dwelling unit or dwelling room located on a property with a Place of Worship, provided that the unit is to be used for residential purposes by the religious leader of such place of worship, and that any outstanding development charges payable for the dwelling unit at 4640 Kingston Road (Item 2019.MM5.29) proceeding under building permit number 17 196522 be forgiven; b. the second (if necessary), third and fourth residential dwelling unit constructed on a single lot, whether constructed as part of or ancillary to the primary residential dwelling on such lot, and provided that such exemption applies only to a development of no more than 4 units on such lot; and c. the category of Hospices, provided that they are owned and operated by a not-for-profit corporation. 4. City Council amend the Development Charges By-law in Attachment 1 to the report (June 28, 2022) from the Chief Financial Officer and Treasurer and the Chief Planner and Executive Director, City Planning, as follows: a. maintain the Toronto Green Standard Refund Tier 2 cap rate for enrolled Toronto Green Standard v2 projects; b. increase the Toronto Green Standard Refund Tier 2 cap for Toronto Green Standard v3 and v4 projects by 25 percent; c. establish and increase the Toronto Green Standard Refund, Tier 3 and 4 cap for near zero emissions projects by 50 percent; and d. all of the rebates in the above points to be funded through the development charges revenues. 5. City Council authorize the City Solicitor to make such stylistic and technical changes to the Development Charges By-law as may be required. 6. City Council adopt the Development Charges Background Study dated April 2022, and the Development Charges Background Study Addendum dated June 2022 (together the "Development Charges Background Study") included as Attachments 2 and 3 to the report (June 28, 2022) from the Chief Financial Officer and Treasurer, and the Chief Planner and Executive Director, City Planning, including the development-related capital program and asset management plan contained within, subject to annual review through the City's normal capital budget process and ongoing asset management strategy. 7. City Council adopt the following for the purposes of complying with the Development Charges Act: a. City Council determine that no further public meeting is required pursuant to Section 12 of the Development Charges Act; b. City Council express its intent that the future excess capacity identified in the Development Charges Background Study shall be paid for by the development charges contemplated in the Development Charges Background Study, or other similar charges; c. City Council adopt the Transit development charges capital program, as included in the Development Charges Background Study, as the planned level of service, and in doing so indicate that City Council intends to ensure that the increase in service for transit will be met; and d. City Council, after having considered the use of more than one development charge by-law to reflect different needs for services in different areas, determine that the charges be calculated on a municipal-wide uniform basis. 8. City Council authorize the Chief Financial Officer and Treasurer to amend the site specific Development Charges payment agreements listed in Attachment 5 to the report (June 28, 2022) from the Chief Financial Officer and Treasurer, and the Chief Planner and Executive Director, City Planning, in a form satisfactory to the City Solicitor and as amended by Part 8 below, in order to coordinate with the report back on financial incentives in 2023 and to extend the term of the deferral periods for the development charge payment, with all other requirements of the existing agreement to remain in force, such new date being the earlier of: a. December 1, 2023; and b. such other dates as set out in the existing agreement. 9. City Council amend the Interest Policy previously adopted by City Council pursuant to Section 26.2 (3) of the Development Charges Act, pertaining to the "frozen" development charges that applies to Site Plan and Rezoning Applications received, and any building permits issued, after November 1, 2020, and authorize the Chief Financial Officer and Treasurer to apply interest charges: a. at a rate of 1.25 percent for each complete 30 day period from the date an applicable Site Plan Application or Rezoning Bylaw Amendment is received, until the date of building permit issuance; b. limited so that the total amount of interest payable when combined with the development charges payable does not exceed the development charges in effect under the City's by-law at the date of building permit issuance; and c. that the updated interest rate come into effect on September 1, 2022. 10. City Council authorize the Chief Building Official and Executive Director, Toronto Building to continue to require applicants seeking conditional below-grade permits to enter into a development charges payment agreement, in accordance with the general terms and conditions in Attachment 6 to the report (June 28, 2022) from the Chief Financial Officer and Treasurer, and the Chief Planner and Executive Director, City Planning and consistent with current practice. 11. City Council approve the establishment of an obligatory reserve fund account named "Development Charges - Long-Term Care" in Appendix C, Schedule 11 - Development Charges Obligatory Reserve Funds of the City of Toronto Municipal Code Chapter 227, the purpose of which is to provide funding for long-term care capital projects, with criteria set out in Attachment 7 to the report (June 28, 2022) from the Chief Financial Officer and Treasurer, and the Chief Planner and Executive Director, City Planning. 12. City Council approve the establishment of an obligatory reserve fund account named "Development Charges - Waste Diversion" in Appendix C, Schedule 11 - Development Charges Obligatory Reserve Funds of the City of Toronto Municipal Code Chapter 227, the purpose of which is to provide funding for waste diversion capital projects, with criteria set out in Attachment 7 to the report (June 28, 2022) from the Chief Financial Officer and Treasurer, and the Chief Planner and Executive Director, City Planning. 13. City Council direct the Executive Director, Housing Secretariat, the Chief Financial Officer and Treasurer, the Chief Planner and Executive Director, City Planning to support the implementation of HousingTO 2020-2030 by initiating a Rental Housing Opportunities Roundtable to engage on short-term pressures, current constraints and future opportunities affecting secure market and affordable rental supply, including representatives from all orders of government, private and non-profit rental developers and operators, and to report back on potential actions in the first quarter of 2023. 14. City Council amend the terms of the Home Ownership Assistance Program to remove the $60,000 cap on the financial assistance allocated to eligible purchasers, while not exceeding the total development charges deferral for the project. 15. City Council direct the Executive Director, Housing Secretariat, in consultation with the Chief Financial Officer and Treasurer, in collaboration with the non-profit homeownership sector, and as part of the ongoing review of the Home Ownership Assistance Program, to explore amending the affordability period under the program to 99 years and review the Home Ownership Assistance Program development charges deferral program, and report back to Council by the second quarter of 2023 with recommendations. 16. City Council request the Federal and Provincial Governments to take urgent action to avoid the loss of rental housing supply currently in development, and to engage with the City's Rental Housing Opportunities Roundtable to consider additional measures and incentives ensuring sufficient purpose-built rental housing supply in Toronto.