Approval of Property Tax Exemptions for new Affordable Rental Homes at 253 Markham Road - Building A - by Councillor Paul Ainslie, seconded by Councillor Gord Perks

This project represents the first phase of a larger redevelopment project. The development is led by The Cedars Non-Profit Housing Co-operative Corporation who will lease the property from Cedars Development Corporation. City staff have completed their review of the application for Building A and it has been approved for financial incentives to create 49 affordable rental homes, and 196 rent-controlled homes. Building A has received conditional approval of funding and financing under Canada Mortgage and Housing Corporation's Co-Operative Housing Development Program, and the proponent has until February 20th, 2025, to satisfy Canada Mortgage and Housing Corporation's 's requirements. To meet these conditions and secure the federal funding and financing, Canada Mortgage and Housing Corporation's requires confirmation that all exemptions and waivers for the project be approved. While the project is eligible for property tax exemptions following its approval under Rental Housing Supply Program, this exemption is subject to approval by City Council. This motion requests Council to approve an exemption from property taxes for municipal and school purposes for the affordable rental and rent-controlled homes at this project, to ensure the proponent can secure funding and financing from Canada Mortgage and Housing Corporation and bring the project to construction start in the second quarter of 2025. The project is described in Table 1 below. Table 1: Property Tax Exemptions for New Affordable Rental and Rent-Controlled homes at 253 Markham Road - Building A to be developed by Cedars Development Corporation and/or the Cedars Non-Profit Housing Co-operative, or any related entities. Proponent Affordable Rental homes Rent-controlled homes Affordability period (years) City Tax Education Tax City Building Levy NPV of Property Tax Exemption Cedars Development Corporation and/or the Cedars Non-Profit Housing Co-operative 49 196 50 $7,946,724 $2,192,354 $110,337 $10,249,415 The larger multi-phase development at 253 Markham Road is subject to a prior development agreement with Build Toronto, originally planned as an ownership project with 50 percent affordable ownership homes. City Council, in July 2018, previously approved financial incentives for this project under a Home Ownership Assistance Program agreement. However, for Building A, the proponents have since shifted their focus to the development of rental housing through a co-operative. In addition, provincial legislative changes have now provided the development charge relief previously available through Home Ownership Assistance Program, and thus, the existing Home Ownership Assistance Program agreement will be terminated. The Home Ownership Assistance Program incentives approved by Council in 2018 have not resulted in any financial impact to the City as the development did not proceed. This motion is urgent as the federal funding and financing represents a singular opportunity to proceed in short order with Building A as the first phase of development on the site. City staff in the Housing Secretariat, and CreateTO, will continue working with the proponent on the remainder of the development phases to deliver additional affordable rental housing.

3. City Council authorize the Executive Director, Housing Secretariat to execute, on behalf of the City, any security or financing documents required by the Cedars Development Corporation and/or the Cedars Non-Profit Housing Co-operative, or any related entities above to secure construction and conventional financing and subsequent refinancing, including any postponement, tripartite, confirmation of status, discharge or consent documents where and when required during the term of the applicable municipal housing facility 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. 4. City Council authorize the Executive Director, Housing Secretariat to execute, on behalf of the City, any documents necessary to terminate the Home Ownership Assistance Program agreement, 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.