Building Faster: Streamlining Housing Delivery and Strengthening the City’s Development Capacity

To meet the complex and evolving housing needs of its residents, the City is adopting a more proactive and hands-on approach to housing development. Structural and policy innovations-such as the establishment of the Housing Development Office and the implementation of the Toronto Builds Policy Framework-are pivotal to this strategy. These initiatives are designed to streamline processes, align resources, and facilitate the timely development of housing on land owned by the City and its agencies and corporations. This report responds to City Council direction from EX19.1 and PH21.4 and provides an update on the new housing delivery model to implement the Toronto Builds Policy Framework. Specifically, it outlines the Housing Delivery Governance Framework, that was established earlier this year, to improve decision-making, accountability and coordination across teams, provides details on the development models, stage gating and approval framework for Toronto Builds sites, and describes the status and key terms of the Master Service Agreements between the City and CreateTO and the Toronto Community Housing Corporation (TCHC), respectively. In addition, this report offers an update on the establishment of the Housing Development Office, which serves as a central coordinating body to drive housing delivery across the corporation and with CreateTO and TCHC, to ensure accountability, efficiency, and innovation in the City's housing efforts.

2. City Council direct the Executive Director, Housing Development Office to request through the annual budget process sufficient funding for all pre-development, due diligence, development review, development procurement, and market offering activities, and all other services to be provided pursuant to the Master Service Agreements with CreateTO and Toronto Community Housing Corporation for Toronto Builds sites based on the Workplan referred to in Recommendation 1 above. 3. City Council authorize the Executive Director, Housing Development Office to approve Development Services Requests and Development Services Summaries and approve and execute Project Addenda for Toronto Builds Projects under the Master Service Agreements with CreateTO and Toronto Community Housing Corporation, respectively subject to the availability of sufficient Council approved funding for the services included in the Project Addendum. 4. City Council, as part of Council's previous request in Part 3 of Item EX19.1, adopted by City Council in December 2024, request the Board of Directors of CreateTO to direct the Chief Executive Officer, CreateTO to advance work on housing opportunities at the direction of the City, including having CreateTO provide development and construction management services and act as a development partner for projects on City lands as part of the terms of the Master Services Agreement to be executed by CreateTO. 5. City Council direct the Executive Director, Development Review, the Chief Building Official and Executive Director, Toronto Building and the Chief Planner and Executive Director, City Planning to prioritize and expedite all relevant planning application and building permit approvals required to deliver Toronto Builds projects, based on the approved Workplan in Recommendation 1 above. 6. City Council deem Toronto Builds projects as having City-wide interest and direct that the City-initiated planning applications for these projects be considered by the Planning and Housing Committee. 7. City Council authorize the Deputy City Manager, Development and Growth Services, in consultation with the Deputy City Manager, Corporate Services, and the Chief Financial Officer and Treasurer to approve the business case and competitive delivery partner selection process for each of the Toronto Builds Projects, as recommended through the Governance Framework, provided that the business case complies with the Toronto Builds Policy Framework and does not include any new financial impacts to the City that were not previously approved by City Council. 8. City Council authorize the Executive Director, Housing Development Office to, in accordance with the approved business case, per Recommendation 7 above: a. undertake, or assign to CreateTO or TCHC through their respective Master Services Agreement to undertake, a competitive process to select a delivery partner; and b. approve, in consultation with the Deputy City Manager, Development and Growth Services a delivery partner for each Toronto Builds Project, provided that the terms are aligned with the approved business case. 9. City Council authorize the Executive Director, Housing Secretariat to issue Requests for Proposals and select, in consultation with the Deputy City Manager, Development and Growth Services, non-profit and for-profit housing operators for Toronto Builds sites, when required, provided that the terms are aligned with the approved business case per Recommendation 7 above. 10. City Council authorize, severally, each of the Executive Director, Housing Secretariat and the Executive Director, Housing Development Office, to negotiate and enter into, on behalf of the City, municipal housing project facility agreements (the City's Contribution Agreement) with the development partners and/or operators selected in accordance with Recommendations 8 and 9, to secure the financial assistance being provided and set out the terms of the development and/or operation of the affordable rental housing, on terms and conditions satisfactory to the Executive Director, Housing Secretariat and the Executive Director, Housing Development Office, and in a form approved by the City Solicitor. 11. City Council authorize, severally, the Executive Director, Housing Secretariat and the Executive Director, Housing Development Office, or their designate, to execute, on behalf of the City, any security or financing documents required by the development partners and/or operators selected in accordance with Recommendations 8 and 9 to secure construction and conventional financing and subsequent refinancing, including any postponement, confirmation of status, discharge or consent documents where and when required during the term of the City's Contribution 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. 12. City Council authorize Executive Director, Housing Secretariat to amend the Contribution Agreements for any of the six Housing Now sites identified in the report (July 2, 2025) from the Deputy City Manager, Development and Growth Services, if required, to remove the requirement that 10 percent of the affordable rental housing units be rented at no more than 40 percent of average market rent and require where not otherwise provided for, that 20 percent of the affordable housing units be made available to households in receipt of housing benefits to create new rent-geared-to-income homes, provided the requirement that the overall average rents for the affordable units at each site not exceed 80 percent of average market rents remains unchanged. 13. City Council direct the Executive Director, Housing Development Office, in consultation with relevant City Divisions, Agencies, and Corporations, to report annually to the Planning and Housing Committee on the status of Toronto Builds Projects, including development progress and timelines, and update on the three-year Workplan. 14. City Council direct the Executive Director, Housing Development Office, in consultation with relevant City Divisions, Agencies, and Corporations, to include in the Toronto Housing Data Hub publicly available information on the delivery of the Toronto Builds Portfolio. Real Estate Authorities to Implement Toronto Builds Projects on City-owned Land 15. City Council authorize the Deputy City Manager, Corporate Services, when transacting with for-profit developers and/or operators in relation to Toronto Builds projects, to approve market value transactions, including leases and related transaction agreements for a term of up to 99 years for the purpose of achieving the City's affordable housing objectives, notwithstanding that the related values may exceed the Deputy City Manager, Corporate Service's existing delegated authority of $5 million dollars, as set out in Municipal Code Chapter 213, Appendix A, provided that the lease and transaction agreements are materially consistent with the applicable business case approved in accordance with Recommendation 7, and the Executive Director, Housing Development Office and the Executive Director, Housing Secretariat concur with the proposed transaction terms. 16. City Council authorize, in relation to transactions contemplated in Recommendation 15 above, the Deputy City Manager, Corporate Services, to consider the estimated value of the affordable housing benefits that will be realized by the City as sufficient market value compensation received by the City, provided the transaction meets the affordability requirements set out in the Toronto Builds Policy Framework. 17. City Council authorize the Deputy City Manager, Corporate Services, when transacting with non-profit developers and/or operators in relation to the Toronto Builds projects, to approve transactions at nominal or less than market value, including leases and related transaction agreements for terms of up to 99 years for the purpose of achieving the City's affordable housing objectives, provided that the Executive Director, Housing Development Office and the Executive Director, Housing Secretariat concur with the proposed transaction terms. 18. City Council authorize, severally, the Deputy City Manager, Corporate Services, and the Executive Director, Corporate Real Estate Management, to execute, on behalf of the City, any documents arising in relation to the exercise of the approval authorities set out in Recommendations 15 and 17 above, subject to such documents being in a form satisfactory to the City Solicitor. 19. City Council authorize the Deputy City Manager, Corporate Services, in consultation with the Executive Director, Housing Development Office, to provide any consent necessary to encumber the Toronto Builds Projects or the affordable rental housing portion thereof, and to negotiate and enter into any associated agreements or other documents required to deliver any of the Toronto Builds Projects or the affordable rental housing portion thereof, on terms and conditions satisfactory to them and in a form approved by the City Solicitor. 20.City Council authorize the Executive Director, Corporate Real Estate Management, to negotiate and enter into agreements, including nominal agreements with corporate entities controlled by either CreateTO or Toronto Community Housing Corporation, where it is deemed necessary to facilitate or perform development activities for Toronto Build Projects in accordance with the terms of the Master Services Agreements. 21. City Council amend Article VI of the City of Toronto Municipal Code, Chapter 415, Development of Land substantially in accordance with Attachment 2 to the report (July 2, 2025) from the Deputy City Manager, Development and Growth Services, to exempt Toronto Builds Projects from the application of parkland dedication requirements and payment of community benefits charges. 22. City Council direct the Deputy City Manager, Development and Growth Services to work, in consultation with the Deputy City Manager, Community Development and Social Services, and request the Board of Directors of CreateTO, and the Board of Directors Toronto Community Housing Corporation to direct the Chief Executive Officers of CreateTO and Toronto Community Housing Corporation to work in consultation with the Deputy City Manager Development and Growth Services and the Deputy City Manager, Community Development and Social Services to explore ways to harmonize community benefits best practices. 23. City Council direct that the confidential information contained in Confidential Attachment 1 remain confidential in its entirety until all the projects under the Master Service Agreements with CreateTO and TCHC have been completed.