Reducing Development Charges in Partnership with the Provincial and Federal Governments - by Mayor Olivia Chow, seconded by Councillor Shelley Carroll

2. City Council direct the Chief Financial Officer and Treasurer to report back to the July 29, 30, and 31, 2026, meting of City Council with proposed by-law amendments for City Council's consideration which include a decrease of the current development charge rates for residential developments as follows, that will apply contingent on the execution of the Transfer Payment Agreement and on other such circumstances specified in the amendments: a. for all rental and non-rental units with 1 bedroom or less, a discount of 40 percent from current rates; and b. for all rental and non-rental units with 2 bedrooms and larger, as well as dwelling rooms, singles and semis, a discount of 60 percent from current rates. 3. City Council direct the Chief Financial Officer and Treasurer to include in the report to the July 29, 30, and 31, 2026, meeting of City Council further implementation considerations required to successfully implement the direction in Part 2 above. 4. City Council approve Phase 2 of the Purpose-built Rental Homes Incentives stream of the Rental Housing Supply Program substantially on the terms and conditions set out in Attachment 2 to the report (June 23, 2026) from the Chief Financial Officer and Treasurer, and on such additional terms and conditions satisfactory to the Executive Director, Housing Secretariat, provided that such additional terms and conditions do not give rise to financial obligations on the part of the City that have not been previously approved by City Council. 5. City Council authorize the Executive Director, Housing Secretariat, following the execution of the Transfer Payment Agreement referenced in Part 1 above, to release a Call for Applications under Phase 2 of the Purpose-built Rental Homes Incentives stream of the Rental Housing Supply Program to identify up to a total of 10,000 new rental homes, including a minimum of 2,000 affordable homes and up to 8,000 market rental homes in eligible rental housing projects, and to approve: a. City benefits available under the Rental Housing Supply Program to eligible affordable rental homes within the approved projects; and b. a deferral of development charges payable by the purpose-built rental units within the approved projects in accordance with Part 6 below. 6. City Council authorize severally the Executive Director, Housing Secretariat and Executive Director, Housing Development Office to negotiate and execute any agreements or documents necessary to implement the program referenced in Parts 4 and 5 above, including agreements with the appropriate legal entities pursuant to Section 27 of the Development Charges Act, to defer the payment of development charges payable in relation to market rental units within projects approved through the Call for Applications for as long as they meet program eligibility requirements, on terms and conditions satisfactory to the Executive Director, Housing Secretariat and the Executive Director, Housing Development Office, and in a form satisfactory to the City Solicitor. 7. City Council direct the Executive Director, Housing Secretariat and the Executive Director, Housing Development Office to require approved projects, as referenced in Part 5 above, to continually demonstrate progress towards construction start, and where necessary reallocate incentives to other eligible projects, in accordance with program guidelines and agreements. 8. City Council direct the Executive Director, Housing Secretariat, to consult with the Chief Executive Officer, CreateTO to assess any applications received from in-flight housing projects on City-owned or City-controlled land under Phase 2 of the Purpose-built Rental Housing Incentives stream, in consideration of other financial support provided by the City to these developments. 9. City Council direct the Chief Financial Officer and Treasurer, in coordination with the Executive Director, Development Review and the Executive Director, Housing Secretariat, to prepare an annual report to City Council which lists the successful application details and amounts of all development projects which access the incentives programs. 10. City Council request the Minister of Municipal Affairs and Housing to impose a time limit on development applications that have been approved through the City's planning process yet the development site has sat vacant for a long period of time, for which no building permit application has been received. 11. City Council direct the City Manager, in consultation with the City Solicitor and the Chief People Officer, to enter into negotiations for Voluntary Recognition Agreements in Toronto's non-industrial, -commercial and -institutional (ICI) construction sectors with the following unions or, where the union with bargaining rights in the non-ICI sector is a separate local of the same international union, their appropriate non-ICI counterpart, and with any corresponding accredited Employer Associations: Labourers' International Union of North America (LIUNA) Local 183; Heat and Frost Insulators and Allied Workers (Insulators); International Association of Bridge, Structural, Ornamental and Reinforcing Iron Workers (Ironworkers); United Association of Journeymen and Apprentices of the Plumbing and Pipe Fitting Industry (Plumbers); International Brotherhood of Electrical Workers (Electricians); International Association of Sheet Metal, Air, Rail and Transportation Workers Local 285 formerly known as Sheet Metal Workers' International Association, Local 285; International Union of Bricklayers and Allied Craftworkers, Local 2; International Union of Painters and Allied Trades - Glaziers Division (Glaziers); and International Union of Painters and Allied Trades (Painters), and that: a. the Voluntary Recognition Agreement with LIUNA Local 183 will recognize LIUNA Local 183's bargaining rights in the Residential, Heavy Construction, Road Work, and Sewers and Watermain only, and will expressly specify that the City does not recognize LIUNA Local 183's bargaining rights in any other sector that is not already recognized; b. the Voluntary Recognition Agreements with each of the other eight building trades locals listed above will recognize their respective bargaining rights in the Residential sector only, and will expressly confirm that recognition applies to the Residential sector only and does not alter or expand any existing ICI sector recognition or collective agreement where such recognition or collective agreement already exists; c. each Voluntary Recognition Agreement will include language to give effect to the following: 1. construction phase only, not the operation or maintenance of completed buildings; 2. direct City procurement only, excluding projects where the City's role is limited to capital contribution, grants, land conveyance, or loan guarantees to third-party developers; 3. eligibility of non-union general contractors to bid on City projects, provided covered trade work is subcontracted to union-signatory employers; 4. project thresholds and exemptions to protect the participation of small construction companies, including a value threshold and an exemption for sole proprietors and small firms; 5. not applicable to modular and prefabricated construction at any stage, including off-site fabrication, on-site assembly, and supplier sourcing; the scope of Voluntary Recognition Agreements with respect to modular and prefabricated construction may be reviewed in future as the industry and applicable labour relations frameworks develop; 6. negotiate a dispute resolution process that resolves Labour Board disputes with no delays to construction, no costs or damages to the City, contractors, or bidders, no cost recovery against the City or its contractors, and focuses on go-forward outcomes; 7. protection of TCEU Local 416, with language tailored to the sector of each agreement; and 8. carve-outs for work placed through the City's Social Procurement Program and Community Benefits Framework for workforce development purposes. 12. City Council request the City Manager to report to the Executive Committee in the first quarter of 2027 with an update on the status of negotiations of the Voluntary Recognition Agreements in Part 11 above and an anticipated timeline to their conclusion.