Affordable Housing Committee

Meeting No. 5
Meeting Date Tuesday, November 13, 2007
Start Time 9:30 AM
Location Committee Room 2, City Hall
Contact Patsy Morris, Committee Administrator
Phone 416-392-9151
E-mail pmorris@toronto.ca
Affordable Housing Committee
Councillor Giorgio Mammoliti(Chair)
Councillor Pam McConnell (Vice-Chair) 		Councillor Adrian Heaps
Councillor Howard Moscoe 		Councillor Cesar Palacio
Councillor Adam Vaughan

Members of Council and Staff: Please keep this agenda and the accompanying material until the City Council meeting dealing with these matters has ended. The City Clerk's Office will not provide additional copies.

Special Assistance for Members of the Public: City staff can arrange for special assistance with some advance notice. If you need special assistance, please call (416-392-8485), TTY 416-338-0889 or e-mail (pmorris@toronto.ca).

Closed Meeting Requirements: If the Affordable Housing Committee wants to meet in closed session (privately), a member of the committee must make a motion to do so and give the reason why the Committee has to meet privately. (City of Toronto Act, 2006).

Notice to People Writing to the Committee: The City of Toronto collects any personal information in your communication to Toronto City Council or its committees under the City of Toronto Act, 2006 and the City of Toronto Municipal Code.

The City collects this information to enable it to make informed decisions on the relevant issue(s). Individuals who submit letters and other information should be aware that any personal information in their communication will become part of the public record. The City will make it available to the public, unless the individual expressly requests the City to remove the personal information.

Direct any questions about this collection to the City Clerk's Office, City Hall, 100 Queen St. W. Toronto ON M5H 2N2 or by calling 416-392-8485.

If the Affordable Housing Committee wishes to meet in closed session (privately), a motion must be made to do so, and the reason given (City of Toronto Act, 2006).

Declarations of Interest under the Municipal Conflict of Interest Act.

Speakers/Presentations - A complete list will be distributed at the meeting Communications/Reports

AH5.1 ACTION   Ward: All

Housing Opportunities Toronto ­ Affordable Housing Framework 2008 ­ 2018

(October 30, 2007) Report from Sue Corke, Deputy City Manager

Recommendations

That this report be received for information.

Financial Impact

There are no direct financial implications from this report. Resources to conduct the consultation process are provided within the Affordable Housing Office.

The Deputy City Manager and Chief Financial Officer has reviewed this report and agrees with the financial impact information.

Summary

The City of Toronto has released for public review and engagement Housing Opportunities Toronto ­ An Affordable Housing Framework 2008 ­ 2018.

This report sets out the highlights of Housing Opportunities Toronto and the public consultation process to be undertaken over the next four to six months. Upon the completion of the consultation, further research and intergovernmental discussion, city officials will draft a long-term Affordable Housing Plan for consideration by the Affordable Housing Committee and Council in 2008.

Background Information

Housing Opportunities Toronto Affordable Housing Framework 2008 - 2018 (http://www.toronto.ca/legdocs/mmis/2007/ah/bgrd/backgroundfile-8053.pdf)
Housing Opportunities Toronto Affordable Housing Framework - Booklet (http://www.toronto.ca/legdocs/mmis/2007/ah/bgrd/backgroundfile-8272.pdf)

AH5.2 ACTION   Ward: 14, 30, 32

Affordable Housing ­ Funding Recommendations Request for Proposals 9155-07-7200 for the Development of Transitional Housing and Supportive Housing

(October 31, 2007) Report from the Deputy City Manager and the Director, Purchasing and Materials Management

Recommendations

The Deputy City Manager and Director of Purchasing and Materials Management recommend that City Council:

  1. Approve the following supportive housing and transitional housing projects selected through the RFP subject to the City successfully signing an agreement with the federal government for the administration of the Homelessness Partnership Initiative funding:
    1. Alternative Living Solutions Inc. at 1908 Gerrard Street East;
    2. Parkdale United Church Foundation Incorporated at 1355 King Street West;
    3. WoodGreen Community Housing Inc. at 650 Queen Street East;
  2. Grant authority to exempt the listed projects from taxation for municipal and school purposes for the term of the municipal capital facility agreement;
  3. Grant authority for exempting all projects, not subject to a waiver under the Development Charges Act, from payment of development fees and charges;
  4. Grant authority to designate the listed projects to qualify as social housing allowing all or part of the project relief from normal parking standards;
  5. Approve $240,000 in funding from the Capital Revolving Fund as a grant to be allocated to Parkdale United Church Foundation for its transitional housing project at1339 King Street West;
  6. Approve the establishment of a Contingency Fund of $500,000 to be drawn from the Homeless Partnership Initiative transitional and supportive housing funds; and
  7. Authorize and direct the General Manager, Shelter Support and Housing Administration on behalf of the City, to approve use of the Contingency Fund under the criteria set out in Appendix 2 and if use of the contingency funds is approved, the General Manager, Shelter Support and Housing Administration be granted authority to execute on behalf of the City an agreement to amend the municipal capital facility agreement for the project receiving contingency funds to reflect the increase in funding.
  8. Grant authority for the City to enter into a municipal capital facility agreement and such other agreements, security and other documents deemed necessary, with the proponents of each of the projects, set out in the foregoing recommendations or to another entity associated and controlled by it and acceptable to the Director of Affordable Housing Development to provide for the development and operation of supportive housing and transitional housing, on such terms and conditions as the Director Affordable Housing Development and the General Manager, Shelter, Support and Housing Administration, considers appropriate and in a form approved by the City Solicitor;
  9. Authorize and direct the Director, Affordable Housing Office Development, on behalf of the City, to execute municipal capital facility agreements and all other agreements and documents deemed necessary to give effect to all other recommendations in this report, on terms and conditions satisfactory to the Director, Affordable Housing Development and the General Manager, Shelter, Support and Housing Administration and in a form approved by the City Solicitor.

Financial Impact

The funding sources to build the 68 units (3 projects) recommended in this report for a total of $11,797,990 are set out below and detailed in Appendix 1. Access to Homelessness Partnership Initiative funding is contingent on the successful signing of an agreement with the federal government, anticipated to be in place effective January 1, 2008.

Direct capital assistance for the construction of the 68 units from all orders of government is:

Government Assistance Capital

Homelessness Partnership Initiative (HPI) Contribution $8,209,000
Capital Revolving Fund Contribution $ 240,000
Minimum Expected GST and PST Rebates $ 293,220
Municipal Development Charges and Planning Fees at current rates $ 337,770
TOTAL $9,079,990

Private equity and mortgage financing to be obtained is set out below:

Proponent Capital Contributions

Minimum Proponent Equity $1,718,000
Minimum First Mortgage Financing $1,000,000
TOTAL $2,718,000

The only operating assistance will be property tax exemptions for the twenty five years of the term of the Contribution Agreements at a total net present value of $666,973 for the three projects. No rent supplements are being provided by the City to any of the projects.

Funding from the Capital Revolving Fund for the Parkdale United Church Foundation "Shalom House" transitional housing project will be provided as a grant by way of forgiveable loan in the amount of $240,000. The Capital Revolving Fund for Affordable Housing projects has an uncommitted balance of $13.5 M available.

The detailed budget implications (including 2008 budget adjustments) for the 2008-2010 year will be reported to the Budget Committee early in 2008 and any 2009-2010 budget year implications associated with these projects will be reported and included in the 2009-2010 year program budgets as developments proceed and funds are advanced. There is no City contribution/commitment required for development beyond what is recommended in this report.

The Deputy City Manager and Chief Financial Officer has reviewed this report and agrees with the financial impact information.

Summary

This report recommends approval of $8,209,000 in federal Homelessness Partnership Initiative funding for the development of 3 transitional and supportive housing projects. These three projects will result in 68 new affordable homes for people who have experienced homelessness in the City of Toronto. The developments were selected from proposals submitted in response to a Request for Proposals ("RFP") issued by the City. It also recommends the establishment of a Contingency Fund in the amount of $500,000 to be funded from Homelessness Partnership Initiative.

Federal capital funding is from the Homelessness Partnership Initiative (HPI), a program that provides resources to communities across Canada to address and alleviate homelessness. In order to acquire the funding, the City of Toronto must sign an agreement with the federal government for HPI, anticipated to be in place effective January 1, 2008. City of Toronto support is in accordance with existing affordable housing policies and programs. This report recommends that the City administer the projects for a period of 25 years. Contributions from the City include waiver of development fees and charges, and exemption from property taxes. There will be no net costs to the City.

This report also recommends approval of $240,000 from the City of Toronto Capital Revolving Fund (CRF) as a grant for the completion of Parkdale United Church Foundation's "Shalom House", a transitional and supportive housing project, the majority of the previous funding was funded under the predecessor program to HPI, the Supporting Communities Partnership Initiative (SCPI).

Background Information

Affordable Housing - Funding Recommendations Request for Proposals 9155-07-7200 for the Development of Transitional Housing and Supportive Housing (http://www.toronto.ca/legdocs/mmis/2007/ah/bgrd/backgroundfile-8048.pdf)

AH5.3 ACTION   Ward: All

Canada-Ontario Affordable Housing Program: Revised Program Allocations

(October 30, 2007) Report from Sue Corke, Deputy City Manager

Recommendations

The Deputy City Manager for Affordable Housing Office recommends that:

  1. Council approve Toronto's participation in the Canada-Ontario Affordable Housing Program (2003) ­ Homeownership Component and authority be granted for the City to enter into the Service Manager's Administration Agreement with the Province of Ontario, to provide for the delivery of the Program by the City, on terms and conditions considered appropriate by the Director, Affordable Housing Development and in a form approved by the City Solicitor;
  2. Council approve conversion of funding for 500 units from the Housing Allowance/Rent Supplement initiative, valued at approximately $10.5 million, to capital funding for rental and supportive capital units and for homeownership loans under the Canada Ontario Affordable Housing Program ­ Homeownership Component;
  3. Council allocate $2 million of the converted Housing Allowance/Rent Supplement initiative to Toronto Community Housing Corporation to provide for the delivery of 150 affordable homes to eligible homebuyers in Regent Park under the Affordable Homeownership Program, on such terms and conditions considered appropriate by the Director, Affordable Housing Development and in a form approved the City Solicitor;
  4. Council allocate $1,740,000 to Miziwe Biik Development Corporation to provide purchasing assistance to 100 eligible Aboriginal home buyers to be allocated from $870,000 of the converted Housing Allowance/Rent Supplement initiative and authority be granted to enter into an agreement to subcontract the delivery of a further $870,000 in assistance, to Miziwe Biik Development Corporation, under the Canada-Ontario Affordable Housing Program ­ Home Ownership Component, on such terms and conditions satisfactory to the Director, Affordable Housing Development and in a form satisfactory to the City Solicitor;
  5. Council approve the transfer of the balance of the converted Housing Allowance/Rent Supplement initiative of approximately $7,630,000 to the Capital Revolving Fund for Affordable Housing to provide capital support for future rental and supportive housing projects approved by Council;
  6. Council confirm that 179 units of home ownership funding, allocated to the City under the Canada-Ontario Affordable Housing Program ­ Home Ownership Component, be deployed by the Province directly with Council's request that these units be delivered to eligible households in Toronto;
  7. the Director, Affordable Housing Development be authorized and directed to execute, on behalf of the City, all agreements referred to in recommendations 1, 3, and 4, and such other documents and agreements deemed necessary to give effect to those recommendations in this report.
  8. the General Manager of Shelter, Support and Housing Administration be authorized and directed, on behalf of the City, to execute any and all necessary agreements and documentation to effect the approved reallocation of HARS funding.

Financial Impact

In 2005 the Province of Ontario allocated $37.8 million in funding to assist 1,800 households under the Housing Allowance/Rent Supplement Component of the Canada-Ontario Affordable Housing Program. In light of new program flexibilities this report is recommending $2.87 million in federal/provincial funding be converted to the Homeownership Component of the Canada-Ontario Affordable Housing Program and the balance be converted to the Rental and Supportive capital component.

Furthermore in 2006 the Province of Ontario also allocated $6.345 million in funding to assist 729 Toronto households purchase a home under the Homeownership Component of the Canada ­ Ontario Affordable Housing Program. At that time the Minister of Municipal Affairs and Housing designated funding for 300 of these units directly to Toronto Community Housing Corporation.

The remaining 429 units of assistance valued at $3.734 million were left to the City of Toronto to decide whether to deliver. In 2006 Council decided that 100 units of assistance be designated to the Aboriginal community, thereby leaving 329 units to be deployed or returned to the Province for provincial delivery. This report recommends 150 units be retained for allocation while returning 179 units of funding.

Program funding to support the homeowner initiatives recommended in this report comes from the federal and provincial governments. The City of Toronto will benefit from receiving a prescribed administration fee.

Upon entering into a Service Manager Administration Agreement with the Province of Ontario the City of Toronto will receive an administration fee of $25,000 for participating in the Homeownership Component of the Program and a another 1.3% of the amount of down payment assistance for each owner applicant. It is anticipated that the administration fee of $25,000 will be received in early 2008. The City will be eligible for an additional $26,260 in administration funding depending on whether there is full Program take-up.

The Deputy City Manager and Chief Financial Officer has reviewed this report and agrees with the financial impact information.

Summary

This report is a follow-up to the report on the Canada-Ontario Affordable Housing Program allocations considered by Toronto City Council at its meeting of October 26, 27, 28 and 31, 2005; June 27, 28 and 29, 2006; and, July 16, 17, and 19, 2007.

The Province has recently offered all Service Managers in Ontario, including the City of Toronto the opportunity to convert all or a portion of its uncommitted allocation of Affordable Housing Program (AHP) Housing Allowance/Rent Supplement (HARS) funds to an AHP capital component: either Rental and Supportive or Homeownership; and to return Homeownership allocations for Provincial redistribution. Further, a number of changes have been made to the Homeownership Component of the Affordable Housing Program, including the opportunity to invest additional federal/provincial funding resources.

This report recommends that the City of Toronto (a) reallocate a portion of provincial HARS funding to capital projects; (b) confirm Toronto's administration of the Homeownership Program; (c) confirm Canada-Ontario Affordable Housing Program funding to the Toronto Community Housing Corporation to assist new residents of Regent Park and also to Miziwe Biik Development Corporation to assist members of Toronto's Aboriginal community; and (d) return to the Province a portion of home ownership funding that the City is requesting they deploy directly in Toronto.

Specifically, it is recommended that Council support the re-deployment of $2,870,000 from the HARS initiative to TCHC to support the Regent Park homeownership program and Miziwe Biik Development Corporation to assist eligible Aboriginal households and the balance of $7,630,000 million to future Rental and Supportive housing capital projects.

Background Information

Canada-Ontario Affordable Housing Program: Revised Program Allocations (http://www.toronto.ca/legdocs/mmis/2007/ah/bgrd/backgroundfile-8049.pdf)

AH5.4 ACTION    

Affordable Home Ownership Opportunity at 403 Keele Street

(November 7, 2007) Member Motion from Councillor Perks and Councillor Mammoliti

Recommendations

  1. Authority be granted to calculate the development charges at the 2007 rate, and defer them in the amount of approximately $3,200,000, on the whole of the 403 Keele Street project, for a period of up to ten years to assist in the delivery of up to 150 affordable ownership homes through deferred payment second mortgages, and which fees are to be paid to the Capital Revolving Fund for Affordable Housing.
  2. Authority be granted to allocate up to 150 forgivable mortgage loans from the Canada- Ontario Affordable Housing Program - Homeownership Component to Home Ownership Alternatives Non-Profit Corporation, or such party or corporation as is deemed appropriate, for delivery of up to 150 eligible purchasers of affordable ownership housing at 403 Keele Street to a maximum of $1,150,000.
  3. Authority be granted for the City to enter into a contribution agreement with Home Ownership Alternatives Non-Profit Corporation or such other parties as the City deems appropriate, to provide for the deferral of development charges, under the Development Charges Act, 1997, for 644 units in a housing project to be developed at 403 Keele Street, thereby securing the repayment of the Development Charges and ensuring the availability of up to 150 of those units to lower income qualifying households, on terms and conditions determined by the Director Affordable Housing Development and in a form approved by the City Solicitor.
  4. Authority be granted for the City to enter into a delivery agreement with Home Ownership Alternatives Non-Profit Corporation and/or such other parties as the City deems appropriate, for delivery and administration, by that corporation of a portion of the City's allocation under the Canada-Ontario Affordable Housing Program - Homeownership Component, as provided for in the Service Manager's Administration Agreement entered into with the Ministry of Municipal Affairs and Housing on terms and conditions determined by the Director Affordable Housing Development and in a form approved by the City Solicitor.
  5. Authority be granted for the Director Affordable Housing Development to execute the contribution agreement and delivery agreement, and any other agreements for documents required to give effect to the foregoing, on behalf of the City.
  6. As a condition of the approval for City support to the project that Home Ownership Alternatives Non-Profit Corporation be required to initially offer up to 150 affordable homes to eligible and interested households on Toronto's social housing waiting list.

Summary

While Toronto has been successful in facilitating the development and construction of affordable rental housing there have been few attempts to support families and individuals in purchasing their first homes. At the same time market conditions continue to put the price of purchasing further and further out of the reach of Toronto renters.

This Notice of Motion recommends Council provide financial support to assist up to 150 households in purchasing an affordable home in a new development ready to start at 403 Keele Street.

The proposed development involves the construction of 644 residential units at the site of a former Canadian Tire store located in the West Toronto Junction neighbourhood at Dundas West and Keele Street. The appropriate planning approvals were granted by Toronto City Council in 2002. The development of the site will result in the elimination of a derelict building and provide an economic and social lift to the local community and business in the West Toronto Junction revitalization area.

403 Keele Street is being developed by its owner, the Kintyre Co-operative Development Corporation, with Options for Homes as the development consultant. Home Ownership Alternatives Non-Profit Corporation is providing financial guarantees to support construction financing and is offering assistance in the form of deferred payment second mortgages to all purchasers. Home Ownership Alternatives Non-Profit Corporation has for the past nine years participated in the development of over 1,400 new lower cost homes in Toronto with a focus on serving first time buyers.

This Notice of Motion puts forward two forms of financial support from the City for 150 families and individuals. Both forms of financial support decrease the amount of the first mortgage needed to purchase the units by increasing the size of a deferred-payment second mortgage:

  1. Deferral of Development Charges

    Current Development Charges for the project's 644 units amount to $3,200,000. This amount applied to the amount of the second mortgages of up to 150 units reduces the first mortgage required to purchase by an average of at least $21,333. The funds are to be repaid on resale, discharge of the mortgage by the owner, or within 10 years by the Home Ownership Alternatives Non-Profit Corporation.

  2. Canada-Ontario Affordable Housing Program - Homeownership Component funding in the amount of $1,150,000.The City of Toronto currently has an allocation of $1,150,000 available from the Canada-Ontario Affordable Housing Program - Homeownership Component (AHP-HC). AHP-HC funding is delivered through second mortgages. Divided among the 150 households this will result in a further reduction of the first mortgage by an average of $7,666.

    It is proposed that Home Ownership Alternatives Non-Profit Corporation act under an administration agreement signed with the City in delivering the AHP-HC to the 150 purchasers. Home Ownership Alternatives Non-Profit Corporation has experience supporting the purchase of affordable ownership homes with funding from the AHP- HC.

The City assistance will allow up to 150 purchasers to pay the equivalent of, or less than, average market rent by unit type for their housing, including mortgage principal, interest, and taxes.

The Home Ownership Alternative Non-Profit Corporation is proposing to provide up to 150 affordable homes that would include approximately 20 bachelor apartments priced at $100,960(cost price) per unit, 40 one bedroom apartments at $120,717(cost price) per unit, 50 two bedroom apartments at $148,575(cost price) per unit and 40 three bedroom apartments at $175,580(cost price) per unit.

These prices are at or below those defined by the Toronto Official Plan as affordable.

Communications

(November 7, 2007) Member Motion from Councillor Perks and Councillor Mammoliti (AH.Main) (http://www.toronto.ca/legdocs/mmis/2007/ah/comm/communicationfile-4243.pdf)