Acquisition of Affordable Housing Development Project at 355 Coxwell Avenue

The approved proposal is for a 6-storey affordable cooperative building containing 33 apartments with a mix of one-, two- and three-bedroom units. The Open Door Program approvals were provided to the non-profit group Community Affordable Housing Solutions ("CAHS"), and the owner of the Property is Habitat for Humanity GTA ("Habitat"), which is a member of CAHS. The Development, like many affordable housing projects, has experienced financial challenges due to changing market conditions (rising construction costs and interest rates), changes to Federal funding programs, and other challenges and delays related to approvals and construction. The Development is no longer viable for CAHS and Habitat as developers, and Habitat has received approval from their Board of Directors to sell the Project. Habitat has offered the Project to the City for a price of $3,800,000 until February 2024. The City's acquisition represents the only way forward to ensure affordable housing outcomes are delivered on the Property. Pending City Council's decision on the acquisition of the Project, City staff will implement an expedited City-led affordable housing development process to maximize the number of affordable homes realized on the Property. This approach is in keeping with Council's recently approved report, Generational Transformation of Toronto's Housing System to Urgently Build More Affordable Homes. The Property is currently vacant and has been remediated, with zoning, site plan and NOAC in place. If acquired, this Property could be included among the City's "Construction Ready" sites.

("the Property") substantially on the terms and conditions set out in Attachment 1 and Confidential Attachment 1 to this report from the Executive Director, Housing Secretariat, and the Executive Director, Corporate Real Estate Management, and on such other or amended terms and conditions that are acceptable to the Executive Director, Corporate Real Estate Management, in consultation with the Executive Director, Housing Secretariat. 2. City Council authorize up to 80 affordable rental housing units developed on the Property to be eligible for waivers of fees for planning applications, building permits and parkland dedication, and for development charges exemptions, unless already paid and provided the units are not already exempted under provincial legislation. 3. City Council authorize the Executive Director, Housing Secretariat to submit any applications to the federal or provincial governments to secure funding to develop affordable housing on the Property, and to execute any agreements or other documents on behalf of the City that may be required with respect to same, on terms and conditions satisfactory to the Executive Director, Housing Secretariat and in a form satisfactory to the City Solicitor. 4. City Council increase the 2023-2032 Approved Capital Budget and Plan for the Housing Secretariat by $665,000, fully funded from the Development Charges Reserve Fund for Subsidized Housing (XR2116) to support the fee simple acquisition of 355 Coxwell Avenue for the purposes of new affordable housing. 5. City Council authorize the public release of Confidential Attachment 1 to the report (November 16, 2023) following the closing of the transaction contemplated herein.