Co-operative Housing Approval to Lease and Operate Thirty-Two New Affordable Rental Homes - by Councillor Paula Fletcher, seconded by Mayor Olivia Chow

In June 2021 City Council approved funding in the amount of $6 million to support the acquisition of the 32 units to be owned by the City and directed the appropriate City Officials to undertake a competitive process for the selection of a non-profit co-operative housing provider to operate affordable rental housing post-construction. The City will retain ownership of the units and enter into a long-term lease agreement with the non-profit co-operative provider who will operate the housing with a focus on housing qualified and eligible members of Toronto's arts and culture industries. City Council has also authorized the negotiation and execution of agreements, including shared facilities and contribution agreements, and the required financing documents to facilitate the development of the project. After five years of construction the Don Summerville project is near completion and the 32 units will be ready in April/May to be transferred to the City. As a result, it is imperative that the City urgently select a capable and experienced non-profit co-operative housing organization to rent-up and operate these new affordable homes. This motion recommends that City Council approve leasing the 32 affordable rental homes to the Naismith Non-Profit Housing Co-operative, which is one of four land trusts operated in Toronto by the Co-operative Housing Federation of Toronto. And furthermore, the motion recommends up to $150,000 be made available to the Co-operative Housing Federation to support eligible legal, administrative and other costs incurred in finalizing this transaction. This startup money is required due to the pilot nature of the arrangement and the need to ensure that the units are operational, and therefore occupied, as soon as possible following handover. This funding is included in the City's 2025-2034 Capital Budget and Plan and has been approved by City Council through the City's 2025 budget process.

2. City Council authorize the Executive Director, Housing Secretariat, to enter into a funding agreement with the Co-operative Housing Federation of Toronto to provide up to $150,000 in funding to support eligible legal, administrative and other costs incurred by Co-operative Housing Federation of Toronto in undertaking this transaction, on the terms and conditions set out in Attachment 1 in a form satisfactory to the City Solicitor. 3. City Council authorize the Executive Director, Corporate Real Estate Management, or designate, in consultation with the Executive Director, Housing Secretariat, to negotiate, approve and execute, on behalf of the City, a long-term lease for the 32 city-owned units at 1555-1575 Queen Street East, and related agreements with the Naismith Non-Profit Housing Co-operative substantially on the major terms and conditions set out in Confidential Attachment 1 to this Motion and such other terms as deemed appropriate by the Executive Director, Corporate Real Estate Management and the Chief Procurement Officer, and such other terms as deemed appropriate by the Executive Director, Corporate Real Estate Management, in consultation with Executive Director, Housing Secretariat, and in a form satisfactory to the City Solicitor. 4. City Council consider the lease referenced in Part 3 above to be in the interests of the City. 5. City Council direct that Confidential Attachment 1 to this motion remain confidential as it pertains to a proposed or pending acquisition or disposition of land by the City of Toronto. 6. City Council authorize the public release of Confidential Attachment 1 to this motion following the completion of the transactions contemplated in this motion, at the discretion of the Executive Director, Corporate Real Estate Management.