Planning and Housing Committee
The full agenda, as filed
All 4 items in the clerk’s order. Each carries the city’s own words: the staff recommendation, what the body decided, and its status. Nothing below is written by us.
PH28.1amended
This report recommends the adoption of Inclusionary Zoning (IZ) Official Plan policies, Zoning By-law provisions and tables draft Implementation Guidelines for consultation. The recommended Inclusionary Zoning policy and zoning framework will enable the City to initially require 5-10% affordable housing and a fully phased-in requirement by 2030 of 8-22% of affordable housing units to be provided in new developments alongside the development of market housing. The introduction of mandatory affordable housing requirements will positively contribute to transforming the delivery of housing in the City by ensuring that affordable housing keeps better pace with the delivery of market housing, contributing to social and economic cohesion in the years to come. Inclusionary Zoning is a widely used planning tool used in hundreds of jurisdictions in the United States, Australia and parts of Canada. Inclusionary Zoning works best in cities where there is strong demand for housing and below market rents and prices can be accommodated through absorption in land values, or in areas where revenues are continually increasing. In support of the preparation of Inclusionary Zoning policies, the City undertook a series of financial assessments in 2019, 2020 and 2021 resulting in a robust financial analysis demonstrating where Inclusionary Zoning can be implemented in the city without negatively impacting overall development activity. Peer review of this work has also been undertaken through a third-party consultant retained by the City and through ongoing consultation on the analysis with development industry analysts. An in-depth analysis of demographic and market data has also been completed to understand housing need and demand across the City and by local neighbourhood. This work, coupled with extensive public and stakeholder consultation throughout 2019, 2020 and 2021, has informed the development of an Inclusionary Zoning policy framework that is balanced, forward-looking and equitable. Since the provincial Inclusionary Zoning regulation was first enacted in 2018, the province undertook legislative changes to limit the potential areas that Inclusionary Zoning may be applied. The Province narrowed the implementation of Inclusionary Zoning to those areas within a Protected Major Transit Station Area (PMTSA) or areas where a Development Permit System has been ordered by the Minister. In addition, the Province introduced new community benefits and parkland rate requirements. These changes have been factored into the financial analysis and final recommended policies. The recommended Official Plan Amendment and Zoning By-law includes a number of directions that reflect the City's specific context and build upon the provincial regulation and legislative framework including: 1. Establishing a minimum development size of 100 units to reflect both minimum required densities that would be required on many sites within PMTSAs, while also recognizing the importance of supporting a diverse range of housing types and sizes that could become financially challenged if Inclusionary Zoning were required on smaller developments; 2. Establishing three distinct market areas to recognize varying market viability in different areas of the City, to be included in the Official Plan as Map 37, each area with its own requirements for condominium projects delivering affordable ownership, condominium projects delivering affordable rental housing or purpose-built rental buildings delivering affordable rental housing; 3. Requiring affordable units to remain affordable for 99 years, ensuring that this stock of housing is not lost over the short term; 4. Setting rents and prices that will reflect the needs of low and moderate income households, providing affordable housing for households for whom market rents and prices are out of reach (e.g., registered nurses, early childhood educators, dental assistants earning between $32,000 and $92,000); 5. Phasing-in of affordable housing requirements from 5-10% in 2022 to 8-22% in 2030 in order to provide time for land values to adjust and the amount of affordable housing required to incrementally increase; 6. Providing for a clear transition period to provide time for developments well advanced to move through the development review process prior to Inclusionary Zoning coming into effect; and 7. Ongoing monitoring and assessment of all aspects of the approach starting in 2025, including reviewing the market areas where Inclusionary Zoning applies. Over the past five years, the City has taken a strong leadership role in the delivery of affordable housing to ensure new housing supply reflects the City's current and future housing needs. Bold affordable housing targets set out in the HousingTO 2020-2030 Action Plan will only be realized through this leadership and partnership with developers and housing providers. Achieving a supply of housing that meets the broad spectrum needs within the city requires multiple policy and program actions. This report highlights many of the recent housing policy, service delivery and program initiatives the City has undertaken in recent years, including the Expanding Housing Options in Neighbourhoods work, policy and zoning changes to maintain and provide for the supply of multi-tenant dwellings or rooming houses, the Concept to Keys initiative, and the Housing Now and Open Door programs, which taken together are all critical in delivering on Council's housing targets. Clarity is essential if the policy framework is to be implemented successfully. As a result, this report recommends that Council endorse for consultation the accompanying draft Implementation Guidelines, which build on experience the City has had over the past 15 years securing affordable housing as a community benefit, either on large sites greater than 5 hectares, within the Central Waterfront Secondary Plan, or as part of site specific developments. This existing policy framework is often described as a voluntary Inclusionary Zoning policy as a developer can elect to provide affordable housing within their development as part of a section 37 community benefits contribution. The results of the current voluntary framework have been uneven and highlight the need for a mandatory framework, as depending on the specific context, some developments have secured affordable housing while others have prioritized other community benefits. The recommended Inclusionary Zoning policy framework was developed in consultation with input from the Housing Secretariat, Shelter, Support and Housing Administration, Corporate Finance, Legal Services, and CreateTO. The background materials and proposed framework meet the provincial requirements for Inclusionary Zoning set out in the Planning Act and Ontario Regulation 232/18.
The Planning and Housing Committee recommends that: 1. City Council adopt the Official Plan Amendment included as Attachment 1 to the report (October 15, 2021) from the Chief Planner and Executive Director, City Planning. 2. City Council adopt the Zoning By-law Amendment included as Attachment 2 to the report (October 15, 2021) from the Chief Planner and Executive Director, City Planning. 3. City Council authorize the City Solicitor to make such stylistic and technical changes to the Official Plan Amendment and Zoning By-law Amendment referred to above in Recommendations 1 and 2 above as may be required. 4. City Council endorse the Inclusionary Zoning Implementation Guidelines included as Attachment 4 to the report (October 15, 2021) from the Chief Planner and Executive Director, City Planning for consultation and report back with final recommended Implementation Guidelines in the first half of 2022, including identifying the terms and conditions for a third party administrator of affordable ownership units, and an additional analysis including a human rights approach on how the set-aside numbers based on the three Zoning Market Areas can be improved to create more affordability, how the significantly large range of set-asides numbers have been identified and the specific evaluation criteria to determine which percentage will be selected on a case-by-case basis. 5. City Council bring forward a zoning by-law amendment to add the Scarborough Centre Protected Major Transit Station Area delineation to the Inclusionary Zoning Overlay map no earlier than September 18, 2023, to provide additional time for the local land market to adjust. 6. City Council deem that a complete Site Plan application submitted under Section 114 of the City of Toronto Act, 2006 shall meet the requirements of Regulation 232/18 under the Planning Act for the purpose of an exemption based on submission of an application for approval of a Site Plan. 7. City Council request that the Minister of Municipal Affairs and Housing amend Section 16(5)(a) of the Planning Act to allow for Official Plan Inclusionary Zoning policies to be applied across the City and not limited to Protected Major Transit Station Areas. 8. City Council forward a copy of the report (October 15, 2021) from the Chief Planner and Executive Director, City Planning to the Minister of Municipal Affairs and Housing along with Attachments 1 through 10. 9. City Council forward a copy of the report (October 15, 2021) from the Chief Planner and Executive Director, City Planning to the Municipal Property Assessment Corporation with a request that property assessments for affordable ownership units take into account the requirements for ongoing affordability of these units over a 99 year period. 10. City Council request the City Manager work with the Municipal Property Assessment Corporation to identify potential options to ensure property assessments reflect the City's household eligibility, resale and price appreciation restrictions for Inclusionary Zoning affordable ownership units. 11. City Council direct the Chief Planner and Executive Director, City Planning to review the market impacts of Inclusionary Zoning one year after the implementation of the Inclusionary Zoning policy has taken effect and to bring forward further amendments to the Official Plan and Zoning By-law policies that may be required as a result of this additional analysis including: a. the need for incentives; b. changes to the Phase-in and/or set aside rate; c. alterations to the minimum development size threshold; and d. any other changes which may be necessary to ensure market stability and production of affordable units. 12. City Council direct the Chief Planner and Executive Director report in June 2022 after conducting additional market analysis in areas currently undergoing study such as Little Jamaica, the Sheppard Subway Corridor and any other areas where planning studies are currently being undertaken and which were not subject to the original detailed analysis to identify additional opportunities wherein Inclusionary Zoning may apply. 13. City Council request that the Chief Planner and Executive Director, City Planning to undertake additional market analysis in the area around both the Mount Dennis area and the Weston Road and Lawrence Avenue West area to determine if there are additional areas that should be added to the Inclusionary Zoning Map of the Official Plan policy and report back no later than June 2022. 14. City Council request the Chief Planner and Executive Director, City Planning to review the policy one year from implementation and assess the maximum number of affordable rental units and affordable ownership units that could be secured and review the percentage of affordable rental and affordable ownership units secured through the policy to ensure that the proposed set aside rates do not unintentionally secure only affordable ownership units. 15. City Council direct the Chief Planner and Executive Director, City Planning to report annually on an interim basis to the Planning and Housing Committee on: a. the actual number of affordable rentals and ownership units approved and secured, including those that are universally accessible, compared to the anticipated projections tracked through the development pipeline to ensure that they are completed and permanently occupied by qualified tenants and owners; b. the establishment of clear goals to obtain the maximum creation of affordable housing to end the housing crisis in five years and new financial tools to achieve this, if required; and c. the creation of additional planning tools to ensure that affordable rental housing is developed in comparable percentages in both condominium development and purpose-built rental development. 16. City Council direct the Chief Planner and Executive Director, City Planning, to develop a new framework to assess which areas are suitable for Inclusionary Zoning, and the percentage of units therein, based on a human rights approach to housing that considers: a. local need for affordable housing; b. community displacement; and c. different models of housing provision.
Staff recommendation as filed
The Chief Planner and Executive Director, City Planning recommends that: 1. City Council adopt the Official Plan Amendment included as Attachment 1 to this report from the Chief Planner and Executive Director, City Planning. 2. City Council adopt the Zoning By-law Amendment included as Attachment 2 to this report from the Chief Planner and Executive Director, City Planning. 3. City Council authorize the City Solicitor to make such stylistic and technical changes to the Official Plan Amendment and Zoning By-law Amendment referred to above in Recommendations 1 and 2 above as may be required. 4. City Council endorse the Inclusionary Zoning Implementation Guidelines included as Attachment 4 to this report from the Chief Planner and Executive Director, City Planning for consultation and report back with final recommended Implementation Guidelines in the first half of 2022, including identifying the terms and conditions for a third party administrator of affordable ownership units. 5. City Council bring forward a zoning by-law amendment to add the Scarborough Centre Protected Major Transit Station Area delineation to the Inclusionary Zoning Overlay map no earlier than September 18, 2023, to provide additional time for the local land market to adjust. 6. City Council deem that a complete Site Plan application submitted under Section 114 of the City of Toronto Act, 2006 shall meet the requirements of Regulation 232/18 under the Planning Act for the purpose of an exemption based on submission of an application for approval of a Site Plan. 7. City Council request that the Minister of Municipal Affairs and Housing amend Section 16(5)(a) of the Planning Act to allow for Official Plan Inclusionary Zoning policies to be applied across the City and not limited to Protected Major Transit Station Areas. 8. City Council forward a copy of this report to the Minister of Municipal Affairs and Housing along with Attachments 1 through 10 to this report. 9. City Council forward a copy of this report to the Municipal Property Assessment Corporation with a request that property assessments for affordable ownership units take into account the requirements for ongoing affordability of these units over a 99 year period. 10. City Council request the City Manager work with the Municipal Property Assessment Corporation to identify potential options to ensure property assessments reflect the City's household eligibility, resale and price appreciation restrictions for Inclusionary Zoning affordable ownership units.
PH28.2adopted
Housing Now Initiative - Annual Progress Update and Launch of Phase Three Sites
The Housing Now Initiative was approved by City Council in January 2019 to activate City-owned lands to stimulate the development of affordable rental housing within transit-oriented, mixed-income, mixed-use, complete communities. This signature program is a key component of the City's HousingTO 2020-2030 Action Plan and is central to enabling the City to meet its target of approving 40,000 new affordable rental homes, including 18,000 supportive homes, by 2030. Of the overall 40,000 new affordable rental homes, the City has committed to delivering 10,000 using its own land and financial incentives. In 2019, as part of phase one of the Housing Now Initiative, 11 properties were approved by City Council to create an estimated 10,000 new homes, including 3,700 affordable rental homes ("Phase One"). In May, 2020, City Council approved six additional sites to be added to the initiative as part of phase two, with the potential to create up to 1,700 additional homes, including up to 620 affordable rental homes ("Phase Two"). The total 17 sites across Phases One and Two are currently in various stages of development. Seven sites have progressed through the re-zoning process, three of which have development partners selected with construction estimated to begin by early-to-mid-2022. Additionally, through the planning approval process, the original residential unit targets were exceeded and the program is now on track to create an estimated 13,479 new homes, including 3,037 ownership homes and 10,142 purpose-built rental homes, of which 5,005 will be affordable. The new affordable rental homes to be created under this program will provide much-needed affordable housing options to address a wide range of housing needs and incomes. This report provides Council with an update on the Housing Now Initiative including progress to-date on advancing the 17 sites. It also recommends Council approval to expand the program to add four additional sites as part of the third phase of the program ("Phase Three"). The Phase Three sites (outlined in Attachment 1) are estimated to yield between 1,150 and 1,400 new homes, including between 450 and 600 affordable rental homes. To support delivery of the Phase Three sites plus the additional units achieved in Phases One and Two, this report also recommends Council's approval of an estimated $90.61 million in Open Door Program incentives. In addition to the Phase Three sites, this report recommends Council approval to create a pipeline of five sites which, subject to satisfactory feasibility assessments, can be added to future phases of the Housing Now Initiative. The creation of a pipeline of sites will enable staff to undertake early due diligence work, including identify risks and mitigation strategies, to ensure that sites can more rapidly move through planning approval and development stages. Creating a pipeline of sites will also enable the City to take advantage of any future federal and provincial funding opportunities, should they become available, to support the development of new housing. The Housing Now Initiative is an example of Toronto's leadership approach to city-building and its commitment to increasing the supply of new homes for current and future residents. Across the growing portfolio of City-owned sites, a significant number of affordable rental, market rental and ownership homes will be developed within complete communities. To-date, the City has dedicated over $1.3 billion in land value, financial incentives, and staffing resources to expedite the planning approvals and development processes. These investments have made it possible for the City to achieve over 50% of its ten-year 10,000 affordable homes approval target in less than three years. However, support from the federal and provincial governments through increased investments and new policy tools is critical to delivering the Housing Now Initiative and the City's overall HousingTO 2020-2030 Action Plan. Participation and investments from the non-profit and private sectors are also essential for success. Increased investments in affordable and supportive housing will support the objectives of all orders of governments to provide a range of housing to address the needs of current and future residents, plus create livable communities where stable, secure and high quality homes provide people with the opportunity to thrive. Investments in housing also support the social, economic and environmental health and resilience of communities, cities and our country as a whole. The Housing Now Initiative is being implemented as a major corporate initiative and this report was developed with input and support from staff in the Housing Secretariat, City Manager's Office, City Planning, CreateTO, Corporate Real Estate Management, Legal Services, Financial Planning, Corporate Finance, Shelter, Support and Housing Administration and Concept 2 Keys.
The Planning and Housing Committee recommends that: Land Considerations 1. City Council direct the Deputy City Manager, Corporate Services and the Executive Director, Corporate Real Estate Management to review, on an expedited basis, the four sites identified in Attachment 1 (the "Phase Three Sites") to the report (October 14, 2021) from the Executive Director, Housing Secretariat, including any prior terms of transfer that have been approved by City Council, and authorize the Deputy City Manager, Corporate Services and the Executive Director, Corporate Real Estate Management to determine, in consultation with the City Manager, whether such terms should be amended in order to achieve the objectives of the Housing Now Initiative. 2. City Council authorize the Deputy City Manager, Corporate Services, where it is determined such action is appropriate to achieve the objectives of the Housing Now Initiative, to declare all or portions of each of the Phase Three Sites surplus, and to amend any prior declaration(s) of surplus, subject to the retention of those areas and interests as have been determined critical to the operational requirements of a division or agency. 3. City Council amend the existing delegated approvals and signing authorities in Item 2017.EX27.12, City-Wide Real Estate - Delegated Authorities Framework and Transition Plan, adopted by City Council on October 2, 3 and 4, 2017, to authorize the Deputy City Manager, Corporate Services and the Chief Financial Officer and Treasurer to approve any lease, transfer and other property transactions involving these Phase Three Sites for the purpose of achieving the City's affordable housing objectives notwithstanding that the related compensation may exceed $5 Million Dollars, and City Council authorize the Deputy City Manager, Corporate Services and the Chief Financial Officer and Treasurer to treat the estimated value of the rental savings that will be realized by tenants of the affordable housing units as compensation received by the City when assessing whether a proposed transaction reflects market value, provided that the Executive Director, Housing Secretariat and the Board of CreateTO or the Board of Directors of the related CreateTO corporate entity concur with the proposed transaction terms. 4. City Council waive the restrictions of Section 2.4(a) of the shareholder direction of Build Toronto Inc., controlled by the Board of CreateTO, solely for transactions relating to the Phase Three Sites on terms and conditions satisfactory to the City Manager and in a form approved by the City Solicitor, and allow for donations or similar contributions to any charity or charitable organization, or to a non-profit organization for the purpose of facilitating the provision of affordable housing units at the Phase Three Sites where determined appropriate by the CreateTO Board of Directors, in consultation with the Deputy City Manager, Corporate Services and the Executive Director, Housing Secretariat. 5. City Council authorize the Deputy City Manager, Corporate Services to approve the transfer of title to any of the Phase Three Sites, or a portion thereof to corporate entities controlled by the Board of CreateTO at nominal consideration where permitted by law, and where the Deputy City Manager, Corporate Services, the Executive Director, Housing Secretariat and the Chief Executive Officer, CreateTO have agreed upon the terms of transfer that will be reflected in a Transfer Agreement between the City and the corporate entity controlled by the CreateTO Board. 6. Council direct the Board of Directors of Toronto Community Housing Corporation, when requested by the Deputy City Manager, Corporate Services and the Executive Director, Corporate Real Estate Management, to transfer a portion of lands located at 1080 Eastern Avenue and currently owned by Toronto Community Housing Corporation, to the City of Toronto at nominal cost to be included as part of the Housing Now site at 1631 Queen Street East, which it will thereafter form part of. Planning Process 7. City Council request the Chief Planner and Executive Director, City Planning to: a. provide key planning principles and guidelines for each of the Phase Three Sites to be included as part of the public market offering process; and b. expeditiously advance Official Plan Amendments, Zoning By-law Amendments and plans of subdivision required to prepare the properties for marketing and ensure a range of housing opportunities within each of the Phase Three Sites; 8. City Council request the Chief Operating Officer, Development, to support the Housing Now Initiative through the Concept 2 Keys (C2K) program by continuing to expedite the review process for Site Plan Control applications submitted by the selected developers of each site. Affordable Housing Program 9. City Council approve an overall development target across the Phase Three Sites including a minimum of one-third affordable rental units (with average rents not to exceed 80 percent of annual Canada Mortgage and Housing Corporation average market rent, a minimum of one-third market rental housing, and a maximum of one-third ownership homes. 10. City Council request the Executive Director, Housing Secretariat, in consultation with the Chief Executive Officer, CreateTO, to explore opportunities and partnerships with other orders of governments and non-profit organizations to exceed the one-third affordable rental housing target on each of the Phase Three Sites. 11. City Council exempt the up to 600 affordable rental homes anticipated to be developed throughout the Phase Three Sites, commencing from first occupancy of each site, from taxation for municipal and school purposes for the term of the municipal housing project facility agreement, with the property tax exemption having an estimated net present value of approximately $19,736,198 over 99 years. 12. City Council exempt the 485 additional affordable rental homes (in addition to the 4,520 affordable homes already approved) anticipated to be developed on the Phases One and Two Sites from taxation for municipal and school purposes for the term of the municipal housing project facility agreement, with the property tax exemption having an estimated net present value of approximately $15,953,427 over 99 years. 13. City Council authorize the Controller to cancel or refund any taxes paid for the affordable rental homes developed on Phase One, Two and Three Sites, after the effective date of the exemption for taxation for municipal and school purposes set out in the applicable municipal housing project facility agreement. 14. City Council authorize the Executive Director, Housing Secretariat to offer the Open Door incentives for affordable rental housing, for up to 600 affordable rental homes, for the term of affordability, and to exempt the affordable rental housing, including any applicable ancillary and related amenity space on the Phase Three Sites, from the payment of development charges and provide a waiver of all planning and building permit fees and parkland dedication fees. 15. City Council authorize the Executive Director, Housing Secretariat to offer the Open Door incentives for affordable rental housing, for 485 additional affordable rental homes (in addition to the 4,520 affordable homes already approved) anticipated to be developed on the Phases One and Two Sites for the term of affordability, and to exempt the affordable rental housing, including any applicable ancillary and related amenity space, from the payment of development charges and provide a waiver of all planning and building permit fees and parkland dedication fees. 16. City Council authorize the Executive Director, Housing Secretariat to negotiate and enter into, on behalf of the City, municipal housing project facility agreements (the City's Contribution Agreement) with the developers chosen for each of the Phase Three Sites, on terms and conditions satisfactory to the Executive Director, Housing Secretariat and in a form approved by the City Solicitor. 17. City Council authorize the Executive Director, Housing Secretariat or her designate to execute, on behalf of the City, any security or financing documents required by the developers of the Phase Three Sites 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 municipal housing project 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. 18. City Council authorize the Deputy City Manager, Corporate Services, in consultation with the Deputy City Manager, Community and Social Services, to provide any consent necessary to transfer or encumber the Phase Three Sites or the affordable rental housing portion thereof, and to negotiate and enter into any agreements or other documents required to effect any future transfer or assignment of any of the Phase Three Sites or the affordable rental housing portion thereof, and the associated legal agreements with the City to another legal entity, on terms and conditions satisfactory to them and in a form approved by the City Solicitor. Funding and Budget Considerations 19. City Council direct the Deputy City Manager, Community and Social Services and the Executive Director, Housing Secretariat to compensate CreateTO for the costs related to the provision by CreateTO of services directly related to implementing the Housing Now Initiative including: preparing the properties for marketing including undertaking necessary environmental studies and remediation; market analyses; planning and other consultant studies; legal costs; overhead and administration costs; relocation costs; costs of on-site City programming requirements; costs of required on- or off-site infrastructure upgrades or improvements; subsidizing projects that many not be financially feasible, etc., with payment to be made on a cost-recovery basis from the Capital Revolving Reserve Fund for Affordable Housing (XR1058). 20. City Council direct the Executive Director, Housing Secretariat, in consultation with the Chief Executive Officer, CreateTO, to include the estimated cost of delivering the Housing Now Initiative as part of the Housing Secretariat's 10-Year Capital Plan for consideration by Council as part of the 2022 budget process. 21. City Council direct the Executive Director, Housing Secretariat, in consultation with the Chief Executive Officer, CreateTO, to request funding to complete due diligence/feasibility work related to the five sites identified as potential future Housing Now Initiative sites in Attachment 2 to the report (October 14, 2021) from the Executive Director, Housing Secretariat, as part of the Housing Secretariat's 10-Year Capital Plan for consideration by Council as part of the 2022 budget process. Market Offering Process 22. City Council direct the utilization of the Phase Three Sites, identified in Attachment 1 to the report (October 14, 2021) from the Executive Director, Housing Secretariat, for the Housing Now Initiative through a market offering process with a priority of retaining public ownership through long-term land leases. 23. City Council direct the Deputy City Manager, Corporate Services, the Deputy City Manager, Community and Social Services, and the Chief Financial Officer and Treasurer to approve the business case and market offering process for each Phase Three Site provided that the Executive Director, Housing Secretariat and the CreateTO Board of Directors or the Board of Directors of the relevant CreateTO corporate entity, concur with the proposed business case and market offering process. 24. City Council direct the Chief Executive Officer, CreateTO, in consultation with the Executive Director, Housing Secretariat to administer the market offering process for the Phase Three Sites and utilize its existing pre-qualified Broker roster to expedite marketing, where required, and to negotiate the leases, purchase agreements and other contracts with the successful development partners, other than the municipal housing project facility agreements in Recommendation 16 above, and subject to the approvals required in Recommendation 23 above. 25. City Council direct the Executive Director, Housing Secretariat, in consultation with the Chief Executive Officer, CreateTO, to administer the market offering process for sites designated exclusively for non-profit and Indigenous participation, and to negotiate the leases, purchase agreements and other contracts with the successful non-profit and Indigenous development proponents. 26. City Council request the Executive Director, Housing Secretariat to work with the Chief Executive Officer, CreateTO, the Deputy City Manager, Corporate Services, and the Chief Financial Officer and Treasurer in overseeing the market offering process related to the Phase Three Sites including the selection of preferred proponents, and the co-ordination of government funding and financing incentives to ensure that the affordable housing projects are financially viable. 27. Council request the Executive Director, Housing Secretariat and the Chief Executive Officer, CreateTO to encourage the involvement and participation of non-profit, co-operative and Indigenous housing organizations in the market offering process for the Phase Three Sites, and to provide greater consideration to submissions that exceed the affordable rental and market rental housing delivery targets and increase supportive housing opportunities. 28. City Council request the Executive Director, Housing Secretariat and the Chief Executive Officer, CreateTO, in consultation with the Executive Director, Social Development, Finance and Administration, to incorporate, in the market offering process for all Housing Now sites, including the Phase Three Sites, measurable community benefits opportunities, such as social procurement and apprenticeship, training, and/or other hiring opportunities for people from equity-deserving communities. 29. City Council request the Executive Director, Housing Secretariat in consultation with the Chief Executive Officer, CreateTO, to ensure that all future Housing Now Initiative sites, including the proposed Phase Three sites, achieve the Toronto Green Standard Version 4 Tier 2 energy performance level with the exception of sites that are currently in, or have completed the market offering process including: 50 Wilson Heights Boulevard; 705 Warden Avenue; 777 Victoria Park Avenue; 140 Merton Street; 2444 Eglinton Avenue East; and Bloor-Kipling (Block One). Other Considerations 30. City Council re-iterate its request that the Federal Government and the Canada Mortgage and Housing Corporation (CMHC): a. approve a portfolio approach to the funding and financing of all sites in the Housing Now Initiative including the new Phase Three Sites; b. develop a streamlined and expedited approach to underwriting Housing Now Initiative sites, including through the Rental Construction Financing Initiative; c. allocate grant funding for eligible Housing Now projects based on the growing need to increase the supply of permanent affordable housing options for residents, and reflective of the high cost of construction in Toronto; and, d. identify and dedicate surplus lands in Toronto for increasing the supply of affordable and supportive housing. 31. City Council re-iterate its request to the Province of Ontario to support the creation of affordable and supportive housing opportunities as part of the Housing Now Initiative by providing operating funding (for both rent supplements to deepen affordability and to provide support services), and to identify and dedicate surplus lands within Toronto for new affordable homes, including supportive housing.
Staff recommendation as filed
The Executive Director, Housing Secretariat recommends that: Land Considerations 1. City Council direct the Deputy City Manager, Corporate Services and the Executive Director, Corporate Real Estate Management to review, on an expedited basis, the four sites identified in Attachment 1 (the "Phase Three Sites") to this report, including any prior terms of transfer that have been approved by City Council, and authorize the Deputy City Manager, Corporate Services and the Executive Director, Corporate Real Estate Management to determine, in consultation with the City Manager, whether such terms should be amended in order to achieve the objectives of the Housing Now Initiative. 2. City Council authorize the Deputy City Manager, Corporate Services, where it is determined such action is appropriate to achieve the objectives of the Housing Now Initiative, to declare all or portions of each of the Phase Three Sites surplus, and to amend any prior declaration(s) of surplus, subject to the retention of those areas and interests as have been determined critical to the operational requirements of a division or agency. 3. City Council amend the existing delegated approvals and signing authorities in Item 2017.EX27.12, City-Wide Real Estate - Delegated Authorities Framework and Transition Plan, adopted by City Council on October 2, 3 and 4, 2017, to authorize the Deputy City Manager, Corporate Services and the Chief Financial Officer and Treasurer to approve any lease, transfer and other property transactions involving these Phase Three Sites for the purpose of achieving the City's affordable housing objectives notwithstanding that the related compensation may exceed $5 Million Dollars, and City Council authorize the Deputy City Manager, Corporate Services and the Chief Financial Officer and Treasurer to treat the estimated value of the rental savings that will be realized by tenants of the affordable housing units as compensation received by the City when assessing whether a proposed transaction reflects market value, provided that the Executive Director, Housing Secretariat and the Board of CreateTO or the Board of Directors of the related CreateTO corporate entity concur with the proposed transaction terms. 4. City Council waive the restrictions of Section 2.4(a) of the shareholder direction of Build Toronto Inc., controlled by the Board of CreateTO, solely for transactions relating to the Phase Three Sites on terms and conditions satisfactory to the City Manager and in a form approved by the City Solicitor, and allow for donations or similar contributions to any charity or charitable organization, or to a non-profit organization for the purpose of facilitating the provision of affordable housing units at the Phase Three Sites where determined appropriate by the CreateTO Board of Directors, in consultation with the Deputy City Manager, Corporate Services and the Executive Director, Housing Secretariat. 5. City Council authorize the Deputy City Manager, Corporate Services to approve the transfer of title to any of the Phase Three Sites, or a portion thereof to corporate entities controlled by the Board of CreateTO at nominal consideration where permitted by law, and where the Deputy City Manager, Corporate Services, the Executive Director, Housing Secretariat and the Chief Executive Officer, CreateTO have agreed upon the terms of transfer that will be reflected in a Transfer Agreement between the City and the corporate entity controlled by the CreateTO Board. 6. Council direct the Board of Directors of Toronto Community Housing Corporation, when requested by the Deputy City Manager, Corporate Services and the Executive Director, Corporate Real Estate Management, to transfer a portion of lands located at 1080 Eastern Avenue and currently owned by Toronto Community Housing Corporation, to the City of Toronto at nominal cost to be included as part of the Housing Now site at 1631 Queen Street East, which it will thereafter form part of. Planning Process 7. City Council request the Chief Planner and Executive Director, City Planning to: a. provide key planning principles and guidelines for each of the Phase Three Sites to be included as part of the public market offering process; and b. expeditiously advance Official Plan Amendments, Zoning By-law Amendments and plans of subdivision required to prepare the properties for marketing and ensure a range of housing opportunities within each of the Phase Three Sites; 8. City Council request the Chief Operating Officer, Development, to support the Housing Now Initiative through the Concept 2 Keys (C2K) program by continuing to expedite the review process for Site Plan Control applications submitted by the selected developers of each site. Affordable Housing Program 9. City Council approve an overall development target across the Phase Three Sites including a minimum of one-third affordable rental units (with average rents not to exceed 80 percent of annual Canada Mortgage and Housing Corporation average market rent, a minimum of one-third market rental housing, and a maximum of one-third ownership homes. 10. City Council request the Executive Director, Housing Secretariat, in consultation with the Chief Executive Officer, CreateTO, to explore opportunities and partnerships with other orders of governments and non-profit organizations to exceed the one-third affordable rental housing target on each of the Phase Three Sites. 11. City Council exempt the up to 600 affordable rental homes anticipated to be developed throughout the Phase Three Sites, commencing from first occupancy of each site, from taxation for municipal and school purposes for the term of the municipal housing project facility agreement, with the property tax exemption having an estimated net present value of approximately $19,736,198 over 99 years. 12. City Council exempt the 485 additional affordable rental homes (in addition to the 4,520 affordable homes already approved) anticipated to be developed on the Phases One and Two Sites from taxation for municipal and school purposes for the term of the municipal housing project facility agreement, with the property tax exemption having an estimated net present value of approximately $15,953,427 over 99 years. 13. City Council authorize the Controller to cancel or refund any taxes paid for the affordable rental homes developed on Phase One, Two and Three Sites, after the effective date of the exemption for taxation for municipal and school purposes set out in the applicable municipal housing project facility agreement. 14. City Council authorize the Executive Director, Housing Secretariat to offer the Open Door incentives for affordable rental housing, for up to 600 affordable rental homes, for the term of affordability, and to exempt the affordable rental housing, including any applicable ancillary and related amenity space on the Phase Three Sites, from the payment of development charges and provide a waiver of all planning and building permit fees and parkland dedication fees. 15. City Council authorize the Executive Director, Housing Secretariat to offer the Open Door incentives for affordable rental housing, for 485 additional affordable rental homes (in addition to the 4,520 affordable homes already approved) anticipated to be developed on the Phases One and Two Sites for the term of affordability, and to exempt the affordable rental housing, including any applicable ancillary and related amenity space, from the payment of development charges and provide a waiver of all planning and building permit fees and parkland dedication fees. 16. City Council authorize the Executive Director, Housing Secretariat to negotiate and enter into, on behalf of the City, municipal housing project facility agreements (the City's Contribution Agreement) with the developers chosen for each of the Phase Three Sites, on terms and conditions satisfactory to the Executive Director, Housing Secretariat and in a form approved by the City Solicitor. 17. City Council authorize the Executive Director, Housing Secretariat or her designate to execute, on behalf of the City, any security or financing documents required by the developers of the Phase Three Sites 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 municipal housing project 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. 18. City Council authorize the Deputy City Manager, Corporate Services, in consultation with the Deputy City Manager, Community and Social Services, to provide any consent necessary to transfer or encumber the Phase Three Sites or the affordable rental housing portion thereof, and to negotiate and enter into any agreements or other documents required to effect any future transfer or assignment of any of the Phase Three Sites or the affordable rental housing portion thereof, and the associated legal agreements with the City to another legal entity, on terms and conditions satisfactory to them and in a form approved by the City Solicitor. Funding and Budget Considerations 19. City Council direct the Deputy City Manager, Community and Social Services and the Executive Director, Housing Secretariat to compensate CreateTO for the costs related to the provision by CreateTO of services directly related to implementing the Housing Now Initiative including: preparing the properties for marketing including undertaking necessary environmental studies and remediation; market analyses; planning and other consultant studies; legal costs; overhead and administration costs; relocation costs; costs of on-site City programming requirements; costs of required on- or off-site infrastructure upgrades or improvements; subsidizing projects that many not be financially feasible, etc., with payment to be made on a cost-recovery basis from the Capital Revolving Reserve Fund for Affordable Housing (XR1058). 20. City Council direct the Executive Director, Housing Secretariat, in consultation with the Chief Executive Officer, CreateTO, to include the estimated cost of delivering the Housing Now Initiative as part of the Housing Secretariat's 10-Year Capital Plan for consideration by Council as part of the 2022 budget process. 21. City Council direct the Executive Director, Housing Secretariat, in consultation with the Chief Executive Officer, CreateTO, to request funding to complete due diligence/feasibility work related to the five sites identified as potential future Housing Now Initiative sites in Attachment 2, as part of the Housing Secretariat's 10-Year Capital Plan for consideration by Council as part of the 2022 budget process. Market Offering Process 22. City Council direct the utilization of the Phase Three Sites, identified in Attachment 1 to this report, for the Housing Now Initiative through a market offering process with a priority of retaining public ownership through long-term land leases. 23. City Council direct the Deputy City Manager, Corporate Services, the Deputy City Manager, Community and Social Services, and the Chief Financial Officer and Treasurer to approve the business case and market offering process for each Phase Three Site provided that the Executive Director, Housing Secretariat and the CreateTO Board of Directors or the Board of Directors of the relevant CreateTO corporate entity, concur with the proposed business case and market offering process. 24. City Council direct the Chief Executive Officer, CreateTO, in consultation with the Executive Director, Housing Secretariat to administer the market offering process for the Phase Three Sites and utilize its existing pre-qualified Broker roster to expedite marketing, where required, and to negotiate the leases, purchase agreements and other contracts with the successful development partners, other than the municipal housing project facility agreements in Recommendation 16 above, and subject to the approvals required in Recommendation 23 above. 25. City Council direct the Executive Director, Housing Secretariat, in consultation with the Chief Executive Officer, CreateTO, to administer the market offering process for sites designated exclusively for non-profit and Indigenous participation, and to negotiate the leases, purchase agreements and other contracts with the successful non-profit and Indigenous development proponents. 26. City Council request the Executive Director, Housing Secretariat to work with the Chief Executive Officer, CreateTO, the Deputy City Manager, Corporate Services, and the Chief Financial Officer and Treasurer in overseeing the market offering process related to the Phase Three Sites including the selection of preferred proponents, and the co-ordination of government funding and financing incentives to ensure that the affordable housing projects are financially viable. 27. Council request the Executive Director, Housing Secretariat and the Chief Executive Officer, CreateTO to encourage the involvement and participation of non-profit, co-operative and Indigenous housing organizations in the market offering process for the Phase Three Sites, and to provide greater consideration to submissions that exceed the affordable rental and market rental housing delivery targets and increase supportive housing opportunities. 28. City Council request the Executive Director, Housing Secretariat and the Chief Executive Officer, CreateTO, in consultation with the Executive Director, Social Development, Finance and Administration, to incorporate, in the market offering process for all Housing Now sites, including the Phase Three Sites, measurable community benefits opportunities, such as social procurement and apprenticeship, training, and/or other hiring opportunities for people from equity-deserving communities. 29. City Council request the Executive Director, Housing Secretariat in consultation with the Chief Executive Officer, CreateTO, to ensure that all future Housing Now Initiative sites, including the proposed Phase Three sites, achieve the Toronto Green Standard Version 4 Tier 2 energy performance level with the exception of sites that are currently in, or have completed the market offering process including: 50 Wilson Heights Boulevard; 705 Warden Avenue; 777 Victoria Park Avenue; 140 Merton Street; 2444 Eglinton Avenue East; and Bloor-Kipling (Block One). Other Considerations 30. City Council re-iterate its request that the Federal Government and the Canada Mortgage and Housing Corporation (CMHC): a. approve a portfolio approach to the funding and financing of all sites in the Housing Now Initiative including the new Phase Three Sites; b. develop a streamlined and expedited approach to underwriting Housing Now Initiative sites, including through the Rental Construction Financing Initiative; c. allocate grant funding for eligible Housing Now projects based on the growing need to increase the supply of permanent affordable housing options for residents, and reflective of the high cost of construction in Toronto; and, d. identify and dedicate surplus lands in Toronto for increasing the supply of affordable and supportive housing. 31. City Council re-iterate its request to the Province of Ontario to support the creation of affordable and supportive housing opportunities as part of the Housing Now Initiative by providing operating funding (for both rent supplements to deepen affordability and to provide support services), and to identify and dedicate surplus lands within Toronto for new affordable homes, including supportive housing.
PH28.3amended
New Multi-Unit Residential Acquisition (MURA) Program to Protect Existing Affordable Rental Homes
In October 2020, through Item PH17.5, City Council adopted the process developed as part of the Rooming House Acquisition Pilot Project to support the acquisition of private market rental housing by non-profit housing organizations, including co-operative housing providers. Council also directed staff to report back on establishing an ongoing rental housing acquisition program that would provide dedicated financial support to non-profit housing organizations or community land trusts, to facilitate the purchase and conversion of at-risk private market affordable housing to permanently affordable rental homes. This report responds to Council's request and recommends a new program, to be called the Multi-Unit Residential Acquisition ("MURA") Program, for approval. The primary objectives of the MURA Program are to remove properties from the speculative housing market and create permanently affordable rental homes; improve housing stability for current and future tenants; improve the physical conditions of buildings; increase capacity in the non-profit and Indigenous housing sectors; and ensure the long-term financial sustainability of the homes. The report recommends a number of actions to begin implementation of the MURA Program in 2021. The proposed Program will provide grant funding and Open Door Program incentives to qualified non-profit and Indigenous housing groups to support their purchase, renovation and operation of market rental properties to create permanently affordable rental homes for Torontonians with low-and-moderate incomes. The Program will also support the City's acquisition of at-risk affordable rental housing that non-profit and Indigenous organizations will operate long term. The MURA Program will be implemented through an open annual proposal call process to establish a list of qualified and experienced non-profit and Indigenous housing providers. Selected proponents will be given pre-approval of available funding which would provide certainty and allow them to move quickly to secure properties available for purchase on the open market. Proponents will have up to one calendar year from the date of approval to submit properties for consideration on a rolling basis. To advance the City's commitments to truth, reconciliation and justice, it is also proposed that 20% of the annual funding allocations under the MURA Program be dedicated to support acquisitions by Indigenous housing organizations for Indigenous Peoples. Subject to City Council approval of this report, the first proposal call will make $10,000,000 in funding available from the Development Charges Reserve Fund (XR2116). Subsequent funding will also be available from the City's Land Acquisition Reserve Fund subject to Council's approval of the strategic disposal of the City asset at 249 Queens Quay West which will be considered by the Executive Committee in October 2021. The strategic disposal of 249 Queens Quay West supports previous Council direction in PH17.5 to establish a small sites acquisition program (now MURA). Under MURA, eligible properties will include small apartment buildings (up to 60 units) and multi-tenant houses (also known as rooming houses) that are either vacant or occupied and at-risk of being lost due to conversion. Based on projects previously supported by the City and advice from the non-profit housing and financial sectors, the MURA Program proposes that apartment building acquisitions and renovations be eligible for up to $200,000 in funding per dwelling unit and multi-tenant houses be eligible for up to $150,000 per dwelling room. Any additional costs will be funded and/or financed by the housing operators. Through the 2021 proposal call, it is anticipated that between 50 and 67 rental apartments and/or dwelling rooms will be converted to permanently affordable rental homes. Recognizing that most residents will have their housing needs met through the city's existing rental supply over the next decade, it is crucial that these homes be preserved and maintained. While the City is taking a leadership role in launching MURA to protect existing rental housing, it is critical that the federal and provincial governments also support these efforts. An acquisition and renovation/conversion program from other orders of government, focused on protecting existing rental housing, could be combined with the City's MURA Program to increase grant funding and/or provide low-cost financing to support acquisitions. Alternatively, other orders of government could allocate funding to the City, to support the expansion/enhancement of MURA in the future. This would ultimately result in a greater number of properties being converted to non-profit, Indigenous and publicly-owned permanent affordable rental housing. Through the stacking of government programs, deeper levels of affordability can also be achieved for lower-income residents, including vulnerable and marginalized people experiencing or at-risk of homelessness. Implementation of the MURA Program will help advance key strategic actions identified in the HousingTO 2020-2030 Action Plan. Specifically, it will help prevent homelessness and improve pathways to housing stability; maintain and increase access to affordable housing; ensure well-maintained and secure homes for renters; and increase the supply of 'For Indigenous, By Indigenous' affordable housing.
The Planning and Housing Committee recommends that: 1. City Council authorize the Executive Director, Housing Secretariat to issue an open and transparent competitive proposal call under the Multi-Unit Residential Acquisition Program (the "MURA Program" or "Program") on an annual basis to experienced non-profit and Indigenous affordable rental housing providers and to select the best proponents, in her sole discretion, to purchase or establish long-term conventional financing, renovate and operate affordable rental housing to be acquired under the MURA Program. 2. City Council increase the 2021 Housing Secretariat Operating Budget by $3.5 million gross and $0 net, fully funded from the City's Development Charges Reserve Fund (XR2116), for the purpose of funding the 2021 proposal call under the Multi-Unit Residential Acquisition Program, with such funding to be payable to the non-profit and Indigenous organizations selected through the process outlined in Recommendation 1 above, for the purpose of acquiring and renovating affordable rental housing under the Program. 3. City Council authorize the Executive Director, Housing Secretariat to negotiate and enter into a municipal capital facility agreement for housing purposes ("Contribution Agreement") providing for the advance of the Program funds to the non-profit and Indigenous groups or a related corporation selected through proposal calls under the Program, whether advanced before or after the entering into of the Contribution Agreement, on terms and conditions satisfactory to the Executive Director, Housing Secretariat, and in a form acceptable to the City Solicitor. 4. City Council authorize the Executive Director, Housing Secretariat to advance a portion of the funding to be provided to the selected non-profit and Indigenous groups, for the purposes of providing funds for deposits and other pre-purchase expenses, prior to the proponent entering into a Contribution Agreement. 5. City Council authorize the Executive Director, Housing Secretariat to allocate 20 percent of annual funding allocations under the Program to support the acquisition of market rental properties by Indigenous housing organizations to create permanent affordable rental homes for Indigenous residents. 6. City Council authorize the Executive Director, Housing Secretariat to support the selected non-profit and Indigenous groups on any applications to the federal or provincial governments to secure funding to support the acquisition and/or renovation of affordable rental housing under the Program, and to execute any agreements or other documents required with respect to same, on terms and conditions satisfactory to the Executive Director, Housing Secretariat and in a form acceptable to the City Solicitor. 7. City Council authorize the Executive Director, Housing Secretariat to execute, on behalf of the City, any security or financing documents or any other documents required to facilitate the funding process, including any documents required by a selected not for profit, or its related corporation to complete third party financing and refinancing, when required during the term of the City's agreement with the successful non-profit and Indigenous groups or their successors. 8. City Council authorize the affordable rental units secured through the Program be eligible for Open Door Program incentives including waivers of planning application and building permit fees, as outlined in the Financial Impact Section of the report (October 14, 2021) from the Executive Director, Housing Secretariat. 9. City Council amend Municipal Housing Facility By-law 1756-2019 to include as a category in the criteria for "Affordable Housing" units acquired pursuant to the Multi-Unit Residential Acquisition Program. 10. City Council, conditional on the enacting of the by-law amendment referred to in Recommendation 9 above, authorize an exemption from taxation for municipal and school purposes for up to 100 affordable rental units annually to a maximum of 500 units to be secured through the Program for the 99-year term of the Contribution Agreements. 11. City Council authorize the Controller to cancel or refund any taxes paid after the effective date of a Contribution Agreement. 12. City Council authorize the Executive Director, Housing Secretariat to issue a Request for Proposals and to select non-profit and Indigenous housing providers to operate properties acquired by the City under the Program. 13. City Council authorize the Executive Director, Housing Secretariat to negotiate and execute on behalf of the City, municipal housing facility agreements for housing purposes (the City's "Contribution Agreement") for 99 years with the non-profit and Indigenous housing providers selected through the competitive process referred to in Recommendation 12, or a related corporation, to secure the financial assistance being provided and to set out the terms of the operation of the affordable rental housing, on terms and conditions satisfactory to the Executive Director, Housing Secretariat and in a form approved by the City Solicitor. 14. City Council authorize the Executive Director, Housing Secretariat to execute, on behalf of the City, any security or financing documents required by the non-profit and Indigenous housing providers, including any postponement, confirmation of status, discharge or consent documents where and when required during the term of the 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. 15. City Council re-iterate the request that the federal and provincial governments establish acquisition programs that would support the acquisitions and renovations/ conversions for all types of private market residential properties and other properties, to create new permanent affordable and supportive homes. 16. City Council authorize the City Solicitor to introduce the necessary Bills to give effect to City Council's decision. 17. City Council direct the Executive Director, Housing Secretariat to incorporate an intersectional gender equity lens to ensure that the Multi-Unit Residential Acquisition (MURA) Program provides equitable housing opportunities and outcomes to all equity-deserving groups including women, non-binary and LGBTQ2S+ communities. 18. City Council direct the Chief Financial Officer and Treasurer in consultation with the Executive Director, Housing Secretariat, as part of the report back on the Vacant Home Tax, to consider the feasibility of allocating a portion of revenues to be received by the City from the future Vacant Homes Tax to the Capital Revolving Loan for Affordable Housing (XR1058), to be allocated to the Multi-Unit Residential Acquisition Program.
Staff recommendation as filed
The Executive Director, Housing Secretariat recommends that: 1. City Council authorize the Executive Director, Housing Secretariat to issue an open and transparent competitive proposal call under the Multi-Unit Residential Acquisition Program (the "MURA Program" or "Program") on an annual basis to experienced non-profit and Indigenous affordable rental housing providers and to select the best proponents, in her sole discretion, to purchase or establish long-term conventional financing, renovate and operate affordable rental housing to be acquired under the MURA Program. 2. City Council increase the 2021 Housing Secretariat Operating Budget by $3.5 million gross and $0 net, fully funded from the City's Development Charges Reserve Fund (XR2116), for the purpose of funding the 2021 proposal call under the Multi-Unit Residential Acquisition Program, with such funding to be payable to the non-profit and Indigenous organizations selected through the process outlined in Recommendation 1 above, for the purpose of acquiring and renovating affordable rental housing under the Program. 3. City Council authorize the Executive Director, Housing Secretariat to negotiate and enter into a municipal capital facility agreement for housing purposes ("Contribution Agreement") providing for the advance of the Program funds to the non-profit and Indigenous groups or a related corporation selected through proposal calls under the Program, whether advanced before or after the entering into of the Contribution Agreement, on terms and conditions satisfactory to the Executive Director, Housing Secretariat, and in a form acceptable to the City Solicitor. 4. City Council authorize the Executive Director, Housing Secretariat to advance a portion of the funding to be provided to the selected non-profit and Indigenous groups, for the purposes of providing funds for deposits and other pre-purchase expenses, prior to the proponent entering into a Contribution Agreement. 5. City Council authorize the Executive Director, Housing Secretariat to allocate 20 percent of annual funding allocations under the Program to support the acquisition of market rental properties by Indigenous housing organizations to create permanent affordable rental homes for Indigenous residents. 6. City Council authorize the Executive Director, Housing Secretariat to support the selected non-profit and Indigenous groups on any applications to the federal or provincial governments to secure funding to support the acquisition and/or renovation of affordable rental housing under the Program, and to execute any agreements or other documents required with respect to same, on terms and conditions satisfactory to the Executive Director, Housing Secretariat and in a form acceptable to the City Solicitor. 7. City Council authorize the Executive Director, Housing Secretariat to execute, on behalf of the City, any security or financing documents or any other documents required to facilitate the funding process, including any documents required by a selected not for profit, or its related corporation to complete third party financing and refinancing, when required during the term of the City's agreement with the successful non-profit and Indigenous groups or their successors. 8. City Council authorize the affordable rental units secured through the Program be eligible for Open Door Program incentives including waivers of planning application and building permit fees, as outlined in the Financial Impact Section of this report. 9. City Council amend Municipal Housing Facility By-law 1756-2019 to include as a category in the criteria for "Affordable Housing" units acquired pursuant to the Multi-Unit Residential Acquisition Program. 10. City Council, conditional on the enacting of the by-law amendment referred to in Recommendation 9 above, authorize an exemption from taxation for municipal and school purposes for up to 100 affordable rental units annually to a maximum of 500 units to be secured through the Program for the 99-year term of the Contribution Agreements. 11. City Council authorize the Controller to cancel or refund any taxes paid after the effective date of a Contribution Agreement. 12. City Council authorize the Executive Director, Housing Secretariat to issue a Request for Proposals and to select non-profit and Indigenous housing providers to operate properties acquired by the City under the Program. 13. City Council authorize the Executive Director, Housing Secretariat to negotiate and execute on behalf of the City, municipal housing facility agreements for housing purposes (the City's "Contribution Agreement") for 99 years with the non-profit and Indigenous housing providers selected through the competitive process referred to in Recommendation 12, or a related corporation, to secure the financial assistance being provided and to set out the terms of the operation of the affordable rental housing, on terms and conditions satisfactory to the Executive Director, Housing Secretariat and in a form approved by the City Solicitor. 14. City Council authorize the Executive Director, Housing Secretariat to execute, on behalf of the City, any security or financing documents required by the non-profit and Indigenous housing providers, including any postponement, confirmation of status, discharge or consent documents where and when required during the term of the 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. 15. City Council re-iterate the request that the federal and provincial governments establish acquisition programs that would support the acquisitions and renovations/ conversions for all types of private market residential properties and other properties, to create new permanent affordable and supportive homes. 16. City Council authorize the City Solicitor to introduce the necessary Bills to give effect to City Council's decision.
PH28.4amended
Official Plan Amendment on Updating the Definitions of Affordable Rental and Ownership Housing
This report recommends an Official Plan Amendment which proposes to revise the following housing definitions in Section 3.2.1 of the Official Plan: (1) affordable rental housing and affordable rents (affordable rental housing); (2) mid-range rents, including adding two new mid-range rent tiers; and (3) affordable ownership housing. The recommended definitions are intended to better respond to the needs of low and moderate income households by establishing definitions of affordable housing that are aligned with incomes instead of solely on market rents/prices. The development of the definitions has been informed by extensive public and stakeholder consultation throughout 2020 and 2021 as well as through consultations on Inclusionary Zoning and the HousingTO 2020-2030 Action Plan ("HousingTO Action Plan") in 2019. During those consultations, participants felt that the City's current affordable housing definitions, which are based on average market rents/prices, had left many low-income residents unable to afford housing and that this problem would continue to worsen over time given average market rents have grown faster than incomes over the past decade. This report, which proposes updates to the Official Plan's housing definitions, is the first step in moving towards an income-based approach for affordable housing, as directed by Council through adoption of the HousingTO Action Plan in December 2019. In addition to revising the Official Plan definitions, the HousingTO Action Plan provides direction for the City to adopt a new income-based approach in the administration of affordable rental housing programs. In accordance with this direction, a future report to Council will be brought forward by staff in 2022 recommending changes to City programs and support implementation of the revised definition of affordable housing. The recommended revised definitions will also be used to update the City's Municipal Housing Facility By-law. The Municipal Housing Facility By-law is used to provide fee and property tax exemption for affordable housing units. Updates to the by-law, including specific transition provisions for projects that have received or initiated funding approvals, will be brought forward after the Official Plan Amendment is in effect, and within a year following the 2022 staff report. In addition to Council direction and stakeholder input, the proposed revised definitions have been informed by the Provincial Policy Statement (PPS). The PPS directs that affordable rental housing should be affordable to households with incomes in the lowest 60 percent of the income distribution for renter households for the regional market area. The PPS also directs that affordable ownership housing should be affordable to households with incomes in the lowest 60 percent of the income distribution for the regional market area. Furthermore, the proposed revised definitions align with the Canada Mortgage and Housing Corporation (CMHC) affordability threshold which sets affordability at no more than 30% of a household's before-tax income. This definition is currently being applied to the federal Rapid Housing Initiative (RHI) projects which provide affordable housing for people experiencing or at risk of homelessness. RHI projects set an affordability requirement whereby tenants pay no more than 30% of their gross income on rent. This level of affordability is being supported by federal investments which fund 100% of capital costs of projects under the program. The recommended changes to the affordable rental housing definition in this report would lead to a reduction in affordable rents for studio units, one-bedroom units, and three-bedroom units compared to affordable rents under the current definition. These reductions in rents are the result of tying affordable rent for each unit type to the lower of average market rent or indicator household incomes. For example, affordable one-bedroom rents are recommended to be set at the lower of average market rent for a one-bedroom unit or what a one-person renter household at the 60th percentile of income can afford. The previous market based definition meant that affordable rents were out of reach for low and moderate income households. For example, under the current definition one-person households earning at or below the 60th percentile of income cannot afford either an affordable studio or one-bedroom unit. Affordable rents for two-bedroom units currently remain unchanged using the recommended definition. This is because what is affordable to incomes for 2-person households in 2021 exceeds the current average market rent for two-bedroom units. However, if average market rents continue to rise faster than incomes, rents for two-bedroom units would be set at what is affordable to the 60th percentile 2-person household, instead of average market rent for two-bedroom units. The recommended mid-range rents definitions in this report have been established to maintain the existing rent thresholds used when implementing rental replacement requirements and in other unique circumstances. Two bands of mid-range rents are recommended. Mid-range rents (affordable) would secure rents higher than affordable rents and up to average market rent. Mid-range rents (moderate) would secure rents up to 1.5 times average market rent. Existing social housing programs that have historically used average market rents could use the mid-range rents (affordable) definition when securing future fee exemptions. As the recommended affordable rental housing definition would lead to lower affordable rents, it would also lead to lower revenues in buildings that provide affordable rental units. Staff will report to Council in 2022 with recommended policy and program changes to help support implementation of the proposed new definition and ensure the delivery of new affordable housing across the city. In terms of affordable homeownership, the recommended definition will lead to changes in affordable ownership prices for all unit types. These proposed changes will tie affordable ownership prices to low and moderate income households in the City of Toronto. The recommended changes also update the total monthly shelter cost used to establish affordable ownership prices. Notably the new definition includes condominium fees as part of the monthly shelter cost. This has the impact of reducing the mortgage payments that can be supported by a given income, leading to a reduction in affordable ownership prices. The affordable housing definitions recommended in this report reflect a human rights-based approach to the development of housing legislation, policy and programs. The recommended definitions which tie affordable rents and affordable ownership prices to incomes rather than market rents/prices, will help ensure that affordable housing secured or developed by the City stays affordable to low and moderate income households. The proposed affordable rental housing definitions also ensure that household sizes used to determine rents for specific unit types align with CMHC's National Occupancy Standard. Increased financial investments from all orders of government and adjustments to policy and programs will be required to support implementation of the new definition as well as to offset any potential impacts to the delivery of new affordable housing. In addition, the proposed changes will help align municipal, provincial and federal housing policies and programs, and support the shared objectives of all governments to increase the supply of affordable housing, promote housing stability for residents and end chronic homelessness.
The Planning and Housing Committee recommends that: 1. City Council amend the Official Plan in accordance with the recommended Official Plan Amendment appended as Attachment 1. 2. City Council authorize the City Solicitor to make such stylistic and technical changes to the recommended Official Plan Amendment as may be required. 3. City Council direct the Executive Director, Housing Secretariat to report back to the Planning and Housing Committee in 2022, following further consultation with affordable housing developers, with: a. a detailed financial analysis outlining impacts of the recommended definition on City programs such as the Housing Now Initiative and Open Door; b. recommended program changes and/or other actions to mitigate impacts to development projects; and c. a recommended transition plan including timelines for implementation of the new definition. 4. City Council direct the Executive Director, Housing Secretariat to engage with the Government of Canada, including Canada Mortgage and Housing Corporation, and the Province of Ontario and report back in 2022 on how current or future funding and financing programs from each order of government could support implementation of the proposed new definition and also meet HousingTO 2020-2030 targets. 5. City Council direct the Executive Director, Housing Secretariat to report back to the Planning and Housing Committee, within 12 months of the Planning and Housing Committee's consideration of the report referenced in recommendation 3 above and after the recommended Official Plan Amendment comes into effect, with recommended changes to the Municipal Housing Facility By-law, including transition provisions.
Staff recommendation as filed
The Chief Planner and Executive Director, City Planning and the Executive Director, Housing Secretariat recommend that: 1. City Council amend the Official Plan in accordance with the recommended Official Plan Amendment appended as Attachment 1. 2. City Council authorize the City Solicitor to make such stylistic and technical changes to the recommended Official Plan Amendment as may be required. 3. City Council direct the Executive Director, Housing Secretariat to report back to the Planning and Housing Committee in 2022 with a detailed financial impact analysis of the recommended definition on City programs such as Housing Now and Open Door, and potential program changes and/or other mitigation strategies to address the impacts. 4. City Council direct the Executive Director, Housing Secretariat to engage with the Government of Canada, including Canada Mortgage and Housing Corporation, and the Province of Ontario and report back in 2022 on how current or future funding and financing programs from each order of government could support implementation of the proposed new definition and also meet HousingTO 2020-2030 targets. 5. City Council direct the Executive Director, Housing Secretariat to report back to the Planning and Housing Committee, within 12 months of the Planning and Housing Committee's consideration of the report referenced in recommendation 3 above and after the recommended Official Plan Amendment comes into effect, with recommended changes to the Municipal Housing Facility By-law, including transition provisions.