| 137864 | REPORT | N | N | MAIN | ACTION | AMENDED | — | N | — | Relaunch of the Home Ownership Assistance Program to Support New Non-Profit Affordable and Attainable Home Ownership Housing | 2024.PH17.7 | — | Y | Y | Y | Y | <p>The Executive Director, Housing Secretariat, recommends that:</p>
<p> </p>
<p>Home Ownership Assistance Program Update</p>
<p> </p>
<p>1. City Council approve the General Terms and Conditions for the Proposed Home Ownership Assistance Program Update as outlined in this report and Attachment 1 from the Executive Director, Housing Secretariat.</p>
<p> </p>
<p>2. City Council authorize the Executive Director, Housing Secretariat, in consultation with the Chief Financial Officer and Treasurer, to provide eligible proponents under the Home Ownership Assistance Program set out in Attachment 1 with the following City financial incentives:</p>
<p> </p>
<p style="padding-left: 30px;">a. deferral from development charges, if not exempted by provincial legislation;</p>
<p style="padding-left: 30px;"> </p>
<p style="padding-left: 30px;">b. waivers of planning application and building permit fees;</p>
<p style="padding-left: 30px;"> </p>
<p style="padding-left: 30px;">c. exemption from community benefits charges, if not exempted by provincial legislation; and</p>
<p> </p>
<p style="padding-left: 30px;">d. exemption of Cash-in-Lieu of Parkland Dedication, subject to the related amendment to Chapter 415 of the Municipal Code referred to in recommendation 3 below.</p>
<p> </p>
<p>3. City Council amend Article III of the City of Toronto Municipal Code, Chapter 415, Development of Land substantially in accordance with Attachment 3 of this Report to expand the Cash-in-Lieu of Parkland Dedication exemption for affordable rental housing units that are the subject of Municipal Housing Project Facility Agreements to include to housing units approved under the Home Ownership Assistance Program.</p>
<p> </p>
<p>4. City Council approve a pilot of up to 50 units for the turn-key stream that would be developed by eligible non-profit/private sector partnership proponents as set out in Attachment 1 to this report, and direct the Executive Director, Housing Secretariat, in consultation with the Chief Financial Officer and Treasurer, develop metrics, monitor and evaluate the performance of the program.</p>
<p> </p>
<p>5. City Council authorize the Executive Director, Housing Secretariat, to allocate $5,000,000 in funding, inclusive of Harmonized Sales Tax and disbursements to the Home Ownership Assistance Program fully funded from the transfer of Toronto Community Housing Corporation's affordable home ownership program funds.</p>
<p> </p>
<p>6. City Council authorize the Executive Director, Housing Secretariat to negotiate and execute, on behalf of the City, the following:</p>
<p> </p>
<p style="padding-left: 30px;">a. a municipal housing facility agreement ("Contribution Agreement") with eligible proponents for funding and financial incentives, and to set out the terms of the development and operation of affordable and attainable ownership housing, based on the Home Ownership Assistance Program General Terms and Conditions set out in Attachment 1 to this report, and including any additional terms and conditions satisfactory to the Executive Director, Housing Secretariat and in a form satisfactory to the City Solicitor; </p>
<p> </p>
<p style="padding-left: 30px;">b. agreements or other suitable arrangements with City of Toronto agencies and/or corporations, the Government of Ontario and/or its agencies, community agencies, private entities and/or individuals, as appropriate, to deliver projects approved under the Home Ownership Assistance Program; and,</p>
<p style="padding-left: 30px;"> </p>
<p style="padding-left: 30px;">c. any security or financing documents required by the proponent to secure construction and conventional financing and subsequent refinancing, including any postponement, tripartite, confirmation of status, discharge or consent documents where and when required during the term of the Contribution 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.</p>
<p> </p>
<p>7. City Council request the Executive Director, Development Review, in consultation with the Executive Director, Housing Secretariat, to consider projects approved by the Home Ownership Assistance Program among those prioritized for review under the Priority Development Review Stream.</p>
<p> </p>
<p>8. City Council request the Board of Directors, CreateTO request the Chief Executive Officer, CreateTO, and the Board of Directors of Toronto Community Housing Corporation request that the Chief Executive Officer of Toronto Community Housing Corporation to work with the Executive Director, Housing Secretariat, to incorporate affordable and attainable housing in appropriate future housing development projects on public lands to be made available on a leasehold basis. </p>
<p> </p>
<p>9. City Council adopt the updated Municipal Housing Facility By-law in Attachment 2 to the report (November 21, 2024) from the Executive Director, Housing Secretariat, and repeal Municipal Housing Facility By-law 713-2024.</p>
<p> </p>
<p>10. City Council authorize the City Solicitor make such stylistic and technical changes to the draft Municipal Housing Facility By-law and to the amendments to the City of Toronto Municipal Code contained in Attachment 3 as may be required.</p>
<p> </p>
<p>Program Administration</p>
<p> </p>
<p>11. City Council authorize the Executive Director, Housing Secretariat, accept Home Ownership Assistance Program applications on a rolling, first-come, first-served basis, and make funding and incentives allocations, up to the 400 unit/year limit.</p>
<p> </p>
<p>12. City Council authorize the Executive Director, Housing Secretariat, in consultation with the Chief Procurement Officer, Purchasing & Material Management Division, to initiate a competitive procurement process for a third party entity to take on responsibility for administering second mortgage charges currently held by the City and the Toronto Community Housing Corporation in relation to legacy home ownership programs as well as delivering and administering future program loans and second mortgage charges.</p>
<p> </p>
<p>Intergovernmental Considerations</p>
<p> </p>
<p>13. City Council request the Government of Ontario to support the implementation of the Home Ownership Assistance Program by:</p>
<p> </p>
<p style="padding-left: 30px;">a. providing flexibility for the City to allocate revolving loan funds from legacy housing programs currently restricted to affordable housing terms to attainable housing developments under the Home Ownership Assistance Program;</p>
<p style="padding-left: 30px;"> </p>
<p style="padding-left: 30px;">b. increasing the maximum loan amount under the Ontario Priorities Housing Initiative Homeownership Component from 10 percent to 15 percent of the eligible units’ purchase price to broaden and improve the impact of the program; and,</p>
<p style="padding-left: 30px;"> </p>
<p style="padding-left: 30px;">c. increasing the maximum household income under the Ontario Priorities Housing Initiative Homeownership Component to the 80th income percentile to align with those under the Home Ownership Assistance Program.</p> | <p>The proposed updates to the City’s Home Ownership Assistance Program (HOAP) recommended by this report are intended to support the development of new non-profit affordable and attainable home ownership housing. The financial contributions recommended primarily include a revised City incentives package and funding contributions from City, federal and provincial sources.</p>
<p> </p>
<p>These recommendations are supported by the Beam Group and BGM Strategy Group report commissioned by the City’s Housing Secretariat titled Designing a Home Ownership Program for the City of Toronto, included here as Attachment 4.</p>
<p> </p>
<p>Expansion of HOAP Incentives for Affordable and Attainable Homes Delivered by Non-Profit Ownership Housing Providers and “Turn-Key” Partnerships</p>
<p> </p>
<p>This report recommends expanding eligibility for HOAP by creating an “attainable” ownership program tier, as detailed further in the comments section of this report, to complement that of “affordable” ownership housing, as defined by the Official Plan.</p>
<p> </p>
<p>HOAP has historically supported new ownership housing projects through a deferral of development charges that would be repaid to the City when the home is resold into the open market or refinanced. The Province's adoption of the More Homes Built Faster Act, 2022 (Bill 23) and the Affordable Homes and Good Jobs Act, 2023 (Bill 134) have now introduced statutory provincial exemptions of development charges, community benefit charges, and cash-in-lieu of parkland dedication for new non-profit housing and housing at affordable rents and prices set out by the Provincial Affordable Residential Units Bulletin. The non-profit housing development exemption came into effect November 28, 2022 and the exemption for housing at affordable rents and prices came into effect on June 1, 2024.</p>
<p> </p>
<p>Non-profit-owned housing developments are exempted from development charges, community benefits charges, and parkland levies, whether affordable, attainable, market, ownership or rental.</p>
<p> </p>
<p>In addition to the exemptions available to non-profit housing developments that meet provincial requirements, this report proposes making additional support available to non-profit development sites by providing waivers of building permit and planning application fees. These waivers have an estimated value of $1,800 per home. The City’s new Rental Housing Supply Program also provides these incentives for affordable rental homes.</p>
<p> </p>
<p>Although Provincial exemptions are available to private sector developers of affordable ownership housing that meets the price limit of the Affordable Residential Units Bulletin (currently no more than $366,500), the City’s HOAP incentives are proposed only to be available to the non-profit sector.</p>
<p> </p>
<p>Non-profit/private sector partnerships, whereby a non-profit partner administers the sale of a privately built home under the terms of the program, are also proposed to be eligible for HOAP incentives. This report recommends that the full incentives package of development charges, community benefits charges, parkland levies, and planning and permit fees be provided by the City to support this new delivery stream for non-profit affordable and attainable homes. In these turn-key partnership scenarios, City contributions would be subject to a tripartite agreement between the developer, the non-profit corporation, and the City.</p>
<p> </p>
<p>It is proposed that these turn-key homes be delivered using an on-going affordability model administered by the non-profit group whereby the home remains affordable from one eligible purchaser household to the next. In this way the City’s HOAP incentives will benefit multiple households over time without the need to recoup the City’s financial contributions when a home transacts on the open market, as is the case under a one-time affordability approach. Municipal contributions would be secured by way of a mortgage charge on title so that in the event that a home is sold into the open market, the City would recoup the value of its incentives.</p>
<p> </p>
<p>In addition to exemptions, development charges rates for ownership homes have been discounted as a result of the removal of housing services as an eligible service. HOAP was previously made possible through a development charge deferral, however, non-profit and affordable and attainable residential homes (once in effect), will be exempted from development charges. Staff will continue to monitor legislative changes and bring forward recommended program updates, as needed. </p>
<p> </p>
<p>Proposed Fee Waivers and Deferrals: Two HOAP Streams Proposed to Support the City’s Target of 400 Homes Annually</p>
<p> </p>
<p>The City has had a target of approving 400 new affordable ownership homes annually. Under the updated HOAP program it is proposed that this target be maintained and include a 50-home pilot component to support the turn-key partnership stream. The estimated financial impacts to the City are outlined below, with Table 1 illustrating the impacts of 350 non-profit owned and developed homes, and Table 2 illustrating the impacts of 50 turn-key homes. The actual financial impacts will be based on the site-specific value of fees and charges applicable to the actual developments.</p>
<p> </p>
<p>Table 1 - Estimated financial impact to City for 350 affordable/attainable ownership homes on lands owned and developed by the non-profit sector<sup>1</sup></p>
<p> </p>
<table style="border-collapse: collapse;" width="100%">
<tbody>
<tr style="height: 15.0pt;">
<td style="width: 47.64%; border: solid black 1.0pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 15.0pt;" width="47%">
<p><span style="font-size: 10.0pt;"> </span></p>
</td>
<td style="width: 24.68%; border: solid black 1.0pt; border-left: none; padding: 0cm 5.4pt 0cm 5.4pt; height: 15.0pt;" width="24%">
<p style="text-align: center;"><span style="font-size: 10.0pt;">Incentive Value Per Unit</span></p>
</td>
<td style="width: 27.68%; border: solid black 1.0pt; border-left: none; padding: 0cm 5.4pt 0cm 5.4pt; height: 15.0pt;" width="27%">
<p style="text-align: center;"><span style="font-size: 10.0pt;">Incentive Value for 350 Units</span></p>
</td>
</tr>
<tr style="height: 23.75pt;">
<td style="width: 47.64%; border-top: none; border-left: solid black 1.0pt; border-bottom: none; border-right: solid black 1.0pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 23.75pt;" width="47%">
<p><span style="font-size: 10.0pt;">Planning Application Fees</span><span style="font-size: 10.0pt;"> </span></p>
</td>
<td style="width: 24.68%; border: none; border-right: solid black 1.0pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 23.75pt;" width="24%">
<p style="text-align: center;"><span style="font-size: 10.0pt;">$800</span></p>
</td>
<td style="width: 27.68%; border: none; border-right: solid black 1.0pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 23.75pt;" width="27%">
<p style="text-align: center;"><span style="font-size: 10.0pt;">$0.28 million</span></p>
</td>
</tr>
<tr style="height: 15.0pt;">
<td style="width: 47.64%; border: solid black 1.0pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 15.0pt;" width="47%">
<p><span style="font-size: 10.0pt;">Building Permit Fees</span><span style="font-size: 10.0pt;"> </span></p>
</td>
<td style="width: 24.68%; border-top: solid black 1.0pt; border-left: none; border-bottom: solid black 1.0pt; border-right: solid windowtext 1.0pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 15.0pt;" width="24%">
<p style="text-align: center;"><span style="font-size: 10.0pt;">$1,000</span></p>
</td>
<td style="width: 27.68%; border: solid black 1.0pt; border-left: none; padding: 0cm 5.4pt 0cm 5.4pt; height: 15.0pt;" width="27%">
<p style="text-align: center;"><span style="font-size: 10.0pt;">$0.35 million</span></p>
</td>
</tr>
<tr style="height: 15.0pt;">
<td style="width: 47.64%; border: solid black 1.0pt; border-top: none; padding: 0cm 5.4pt 0cm 5.4pt; height: 15.0pt;" width="47%">
<p><span style="font-size: 10.0pt;">Total Value of Incentives</span><span style="font-size: 10.0pt;"> </span></p>
</td>
<td style="width: 24.68%; border-top: none; border-left: none; border-bottom: solid black 1.0pt; border-right: solid windowtext 1.0pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 15.0pt;" width="24%">
<p style="text-align: center;"><span style="font-size: 10.0pt;">$1,800</span></p>
</td>
<td style="width: 27.68%; border-top: none; border-left: none; border-bottom: solid black 1.0pt; border-right: solid black 1.0pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 15.0pt;" width="27%">
<p style="text-align: center;"><span style="font-size: 10.0pt;">$0.63 million</span></p>
</td>
</tr>
</tbody>
</table>
<p> </p>
<p>1) Excludes exemption of development charges, parkland dedication, and community benefits charges as required through the Development Charges Act/Bill 23.</p>
<p> </p>
<p>To sustain this program stream for 350 units per year, it is estimated the foregone revenue from statutory exemptions for development charges, parkland dedication, and community benefits charges will total $34.8 million. The province has indicated that it would make the City whole for these exemptions. In the interim, the City must make up foregone revenue from other sources, or defer capital investments if no other funding is available.</p>
<p> </p>
<p>Table 2 - Estimated financial incentives to City for 50 private/non-profit partnership turn-key affordable/attainable ownership homes</p>
<p> </p>
<table style="border-collapse: collapse;" width="100%">
<tbody>
<tr style="height: 15.0pt;">
<td style="width: 47.7%; border: solid black 1.0pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 15.0pt;" width="47%">
<p><span style="font-size: 10.0pt;"> </span></p>
</td>
<td style="width: 24.54%; border: solid black 1.0pt; border-left: none; padding: 0cm 5.4pt 0cm 5.4pt; height: 15.0pt;" width="24%">
<p style="text-align: center;"><span style="font-size: 10.0pt;">Incentive Value Per Unit</span></p>
</td>
<td style="width: 27.76%; border-top: solid black 1.0pt; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid black 1.0pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 15.0pt;" width="27%">
<p style="text-align: center;"><span style="font-size: 10.0pt;">Incentive Value for 50 Units</span></p>
</td>
</tr>
<tr style="height: 15.0pt;">
<td style="width: 47.7%; border: solid black 1.0pt; border-top: none; padding: 0cm 5.4pt 0cm 5.4pt; height: 15.0pt;" width="47%">
<p style="text-align: justify;"><span style="font-size: 10.0pt;">Development Charges<sup>1</sup></span></p>
</td>
<td style="width: 24.54%; border-top: none; border-left: none; border-bottom: solid black 1.0pt; border-right: solid windowtext 1.0pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 15.0pt;" width="24%">
<p style="text-align: center;"><span style="font-size: 10.0pt;">$65,300</span></p>
</td>
<td style="width: 27.76%; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 15.0pt;" width="27%">
<p style="text-align: center;"><span style="font-size: 10.0pt;">$3.27 million</span></p>
</td>
</tr>
<tr style="height: 15.0pt;">
<td style="width: 47.7%; border: solid black 1.0pt; border-top: none; padding: 0cm 5.4pt 0cm 5.4pt; height: 15.0pt;" width="47%">
<p><span style="font-size: 10.0pt;">Parkland Dedication<sup>2</sup></span></p>
</td>
<td style="width: 24.54%; border-top: none; border-left: none; border-bottom: solid black 1.0pt; border-right: solid windowtext 1.0pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 15.0pt;" width="24%">
<p style="text-align: center;"><span style="font-size: 10.0pt;">$15,000</span></p>
</td>
<td style="width: 27.76%; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 15.0pt;" width="27%">
<p style="text-align: center;"><span style="font-size: 10.0pt;">$0.75 million</span></p>
</td>
</tr>
<tr style="height: 15.0pt;">
<td style="width: 47.7%; border: solid black 1.0pt; border-top: none; padding: 0cm 5.4pt 0cm 5.4pt; height: 15.0pt;" width="47%">
<p><span style="font-size: 10.0pt;">Community Benefits Charges </span><span style="font-size: 10.0pt;"> </span></p>
</td>
<td style="width: 24.54%; border-top: none; border-left: none; border-bottom: solid black 1.0pt; border-right: solid windowtext 1.0pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 15.0pt;" width="24%">
<p style="text-align: center;"><span style="font-size: 10.0pt;">$6,000</span></p>
</td>
<td style="width: 27.76%; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 15.0pt;" width="27%">
<p style="text-align: center;"><span style="font-size: 10.0pt;">$0.30 million</span></p>
</td>
</tr>
<tr style="height: 15.0pt;">
<td style="width: 47.7%; border: solid black 1.0pt; border-top: none; padding: 0cm 5.4pt 0cm 5.4pt; height: 15.0pt;" width="47%">
<p><span style="font-size: 10.0pt;">Planning Application Fees</span><span style="font-size: 10.0pt;"> </span></p>
</td>
<td style="width: 24.54%; border-top: none; border-left: none; border-bottom: solid black 1.0pt; border-right: solid windowtext 1.0pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 15.0pt;" width="24%">
<p style="text-align: center;"><span style="font-size: 10.0pt;">$800</span></p>
</td>
<td style="width: 27.76%; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 15.0pt;" width="27%">
<p style="text-align: center;"><span style="font-size: 10.0pt;">$0.04 million</span></p>
</td>
</tr>
<tr style="height: 15.0pt;">
<td style="width: 47.7%; border: solid black 1.0pt; border-top: none; padding: 0cm 5.4pt 0cm 5.4pt; height: 15.0pt;" width="47%">
<p><span style="font-size: 10.0pt;">Building Permit Fees</span><span style="font-size: 10.0pt;"> </span></p>
</td>
<td style="width: 24.54%; border-top: none; border-left: none; border-bottom: solid black 1.0pt; border-right: solid windowtext 1.0pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 15.0pt;" width="24%">
<p style="text-align: center;"><span style="font-size: 10.0pt;">$1,000</span></p>
</td>
<td style="width: 27.76%; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 15.0pt;" width="27%">
<p style="text-align: center;"><span style="font-size: 10.0pt;">$0.05 million</span></p>
</td>
</tr>
<tr style="height: 15.0pt;">
<td style="width: 47.7%; border: solid black 1.0pt; border-top: none; padding: 0cm 5.4pt 0cm 5.4pt; height: 15.0pt;" width="47%">
<p><span style="font-size: 10.0pt;">Total Value of Incentives</span><span style="font-size: 10.0pt;"> </span></p>
</td>
<td style="width: 24.54%; border-top: none; border-left: none; border-bottom: solid black 1.0pt; border-right: solid windowtext 1.0pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 15.0pt;" width="24%">
<p style="text-align: center;"><span style="font-size: 10.0pt;">$88,100</span></p>
</td>
<td style="width: 27.76%; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 15.0pt;" width="27%">
<p style="text-align: center;"><span style="font-size: 10.0pt;">$4.41 million</span></p>
</td>
</tr>
</tbody>
</table>
<p> </p>
<p>1) Calculations based on unit mix of 10 percent studio, 45 percent 1-bed, 35 percent 2-bed, 10 percent 3-bed units. Calculated using June 6, 2024 rates.</p>
<p> </p>
<p>2) Development charges are discounted due to provincial legislative changes to remove housing as an eligible DC service (estimated at $13,100 per unit).</p>
<p> </p>
<p>3) Estimate is based on land value and reflects an apportioning of land value over a project.</p>
<p> </p>
<p>The City’s HOAP incentives for the 400-home target are estimated to total $5.0 million for exemptions and waivers to municipal fees and charges that would be provided as part of HOAP loans. This figure represents a net new impact and does not include foregone revenue resulting from provincial legislative changes.</p>
<p> </p>
<p>Federal, Provincial and City Funding Contributions </p>
<p> </p>
<p>The Beam Group and BGM Strategy Group report, Designing a Home Ownership Program for the City of Toronto (Attachment 4), estimates that to fill the financial gap for households at the 70th income percentile (the middle of the proposed household eligibility increase from the 60th to the 80th percentile), in addition to the HOAP incentives package recommended by this report, a contribution of some $110,000 would still be required to facilitate an attainable purchase of an average priced condominium apartment valued at $752,000. This financial gap can be filled by a combination of land contributions and federal, provincial or City funding.</p>
<p> </p>
<p>This report recommends that $5.0 million in existing funding be committed to HOAP in the Housing Secretariat’s 2025 budget. This initial investment is proposed to be funded by legacy federal – provincial loan funding repaid by program clients. As noted above, the City has delivered home ownership assistance loan funding under federal/provincial housing programs since 2007 in partnership with both non-profit and private sector developers. In particular, TCHC and their private sector development partner in the first phases of the Regent Park revitalization, the Daniels Corporation, delivered a substantial number of Federal/Provincial loans. As the home ownership loans at these various projects were repaid, both the City and TCHC each separately accumulated funds available for redeployment as new down-payment assistance loans in a “Revolving Loan Fund”.</p>
<p> </p>
<p>Housing Secretariat and TCHC staff are in the process of transferring the current balance of TCHC’s Revolving Loan Fund and any unused ownership funding to the City for redeployment. These funds provide the source of revenue for the $5.0 million recommended for the Housing Secretariat’s 2025 budget referenced above. This report recommends that the Executive Director, Housing Secretariat, be authorized to allocate the available funds to future attainable and affordable housing developments, including future Ontario-Toronto New Deal modular attainable ownership housing initiative sites.</p>
<p> </p>
<p>Historically, household income and unit price eligibility under federal/provincial housing programs have been set by the local 60th income percentile and the average resale price respectively. In 2023, the Province made amendments to expand eligibility under their current homeownership loan program to include first-time buyers (in addition to renter households) and allow larger households with incomes up to the 70th percentile to qualify. This report recommends that the City request the Province to expand eligibility for these funds so they may be allocated under the terms of the HOAP initiative, making households with incomes up to the 80th percentile eligible for loans.</p>
<p> </p>
<p>The City has an existing target of 400 affordable ownership housing approvals annually that is proposed to be transferred to the broader category of affordable and attainable housing. The contributions recommended in this report will enable the City and the non-profit sector to build momentum towards reaching the annual target. Approval for additional funding and incentives allocations will be brought forward to City Council through staff reports or the annual budget process.</p>
<p> </p>
<p>Subject to the adoption of this report, the City will continue to support affordable/ attainable ownership housing development through the allocation of incentives and funding. Final program contributions will be determined based on the evaluation of applications on a site-by-site basis as determined by the Executive Director, Housing Secretariat.</p> | <p>Toronto is facing two housing crises – one where there is a lack of deeply affordable and supportive homes for low-income, marginalized, and vulnerable residents, as well as those experiencing homelessness; and a more recent one in which rising housing costs have made it increasingly unaffordable for middle income earners, key workers and professionals to live in the city. To respond to this dual crises, City Council has pledged to meet the Provincial housing target of 285,000 housing starts in Toronto by 2031,</p>
<p> </p>
<p>As Toronto residents continue to struggle with rising inflation and cost of living, it is becoming increasingly difficult even for middle income earners to access the ownership market, including women-led households and those from equity-deserving communities. As of the 2021 Census, home ownership rates for Indigenous and Black-led households were 50 percent lower than the general population, and historical inequities in homeownership levels within low-income, racialized, and other equity-deserving groups means these groups have not experienced the benefits that typically accompany home ownership.</p>
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<p>This report recommends key changes to the Home Ownership Assistance Program (HOAP), which was first introduced in 2010, enhancing the City’s approach to supporting new non-profit ownership housing development and administration, at a time when new housing solutions are needed across the housing continuum. HOAP currently provides down payment assistance loans through the deferral of development charges for eligible homeowners.</p>
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<p>This report recommends key changes to the HOAP program that respond to Toronto’s current housing context, will expand its reach and impact, and other actions to advance affordable home ownership in line with City Council’s target of approving 4,000 affordable ownership homes by 2030:</p>
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<li>That HOAP eligibility be expanded to include a new “attainable” program tier, with eligible household incomes and home price limits above the “affordable” thresholds prescribed by the City’s Official Plan;</li>
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<li>That the HOAP incentives package be expanded to increase the City’s contributions to non-profit ownership housing, and extended to include private/non-profit development partnerships, and;</li>
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<li>That the City provide funding and land contributions where available and appropriate, particularly to support the New Deal modular attainable housing initiative currently underway with the Province of Ontario.</li>
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<p>The proposed changes are coordinated with statutory exemptions and discounts to municipal growth funding tools introduced by the Province. Recent legislative changes through Bill 23, the More Homes Built Faster Act, and Bill 134, the Affordable Homes and Good Jobs Act, provide non-profit and affordable rental and ownership housing developers with a variety of statutory exemptions from key municipal fees (development charges, parks levies and community benefits charges). The Province has indicated it would make the City whole for the impacts of legislation changes impacting municipal growth funding tools, but this has not yet been confirmed or received. Through the recommendations of this report the updated HOAP incentives package will build on these statutory exemptions to further support non-profit attainable and affordable housing developments. It is also proposed that the incentive package be extended to non-profit partnerships with private developers, which are currently not eligible for the provincial non-profit exemptions.</p>
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<p>In 2020, the City’s Auditor General reviewed the City’s affordable ownership housing programs and recommended the program be revised to strengthen administration and oversight, program design, and to better monitor program outcomes. Following the Auditor's recommendations, the Housing Secretariat engaged the consultants Beam Group and BGM Strategy Group to conduct an evaluation of the program and make recommendations for a program redesign and relaunch. The reports prepared by the consultants are provided as Attachments 4 and 5 and support the recommendations and content of this report. The consultants’ reports and the proposed updates to HOAP address the issues raised by the Auditor General.</p>
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<p>In September 2023, Premier Doug Ford and Toronto Mayor Olivia Chow announced a Working Group of senior public servants from the Government of Ontario and the City of Toronto. The Working Group’s "Ontario-Toronto New Deal Working Group - Term Sheet" was approved by City Council in December 2023 and included a modular attainable housing initiative targeting the development of five sites with Provincial and City support. The recommendations outlined in this report will support future New Deal modular attainable housing developments through the proposed expansion of the HOAP incentives package, as well as funding and land contributions. This report also recommends including HOAP opportunities in appropriate CreateTO and Toronto Community Housing Corporation (TCHC) redevelopments, with suitable TCHC developments providing the opportunity for TCHC tenants to become homeowners.</p>
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<p>The City of Toronto has provided financial support to low-to-moderate income families and individuals, in the form of down payment assistance loans, and/or for the construction of new affordable home ownership housing, through various Federal/ Provincial and City programs since 2007. Since the introduction of HOAP in 2010, the federal/provincial and City programs have provided some 1,370 down payment assistance loans to eligible households worth a combined $54.5 million.</p>
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<p>The recommendations in this report will support the delivery of the City’s HousingTO 2020-2030 Plan and targets in partnership with the federal and provincial governments, and non-profit and private development sectors. Increasing the supply of new homes across the housing continuum will reduce pressure throughout the housing system, improve housing affordability for lower and middle-income households, and support the growth of complete communities.</p> | 17 | 7 | CMMTTEE | PH | All | N | 1734411600000 | … | Report | ACTION | Amended | Main | — | — | Committee | … | … | … | … | … | … | … | … | … | … | … | Decision information not found | false | Amended | — | … | … | … | … | — | — | — | — | — |