| 139697 | REPORT | N | N | MAIN | ACTION | ADOPTED | — | N | — | Authority to Enter into Municipal Housing Project Facility Agreements with Community Housing Providers | 2025.PH20.6 | — | Y | Y | Y | Y | <p>The Executive Director (Interim), Housing Secretariat recommends that:</p>
<p> </p>
<p>1. City Council direct that a new chapter in the City of Toronto Municipal Code titled, Toronto Municipal Code Chapter 513, Housing Programs, be established substantially in the form attached as Attachment 1 to this report (March 27, 2025) from the Executive Director, Housing Secretariat, and require that the chapter apply to all municipal housing facilities in Toronto unless otherwise exempted in the by-law.</p>
<p> </p>
<p>2. City Council repeal City of Toronto By-law 713-2024 to enact a new municipal Housing Facility By-law and to repeal By-law 183-2022.</p>
<p> </p>
<p>3. City Council authorize the Executive Director, Housing Secretariat to negotiate and enter into, on behalf of the City, Municipal Housing Project Facility Agreements for housing purposes for up to 20 years with Housing Services Act, 2011 Part VII.1 Community Housing Providers to secure affordable housing in accordance with the new Toronto Municipal Code Chapter 513, Housing Programs as set out in Part 1 above on terms and conditions satisfactory to the Executive Director, Housing Secretariat and in a form approved by the City Solicitor.</p>
<p> </p>
<p>4. City Council authorize an exemption, for Housing Services Act, 2011 Part VII.1 Community Housing Providers who have entered into a Municipal Housing Project Facility Agreement pursuant to Part 3 above, from taxation for municipal and school purposes and authorize staff to cancel or refund any taxes paid after the Effective Date of exemption from taxation for municipal and school purposes as set out in the applicable Municipal Housing Project Facility Agreement with the Housing Services Act, 2011 Part VII.1 Community Housing Provider.</p>
<p> </p>
<p>5. City Council authorize the Executive Director, Housing Secretariat to negotiate, on behalf of the City, service agreements with Housing Services Act, 2011 Part VII.1 Community Housing Providers that incorporate the requirements of a social housing program under s. 453.1 of the City of Toronto Act, 2006, upon terms and conditions satisfactory to the Executive Director, Housing Secretariat and in a form satisfactory to the City Solicitor.</p>
<p> </p>
<p>6. City Council authorize the Executive Director, Housing Secretariat, together with the Chief Financial Officer and Treasurer, to forgive, extend, or otherwise amend the financial terms and conditions of existing City loan agreements with Community Housing Providers, issued from the Social Housing Stabilization Reserve Fund (XQ1106) and Social Housing Federal Reserve Fund (XR2105) as identified in Table 2, on a case-by-case basis.</p>
<p> </p>
<p>7. City Council direct the Executive Director, Housing Secretariat, together with the Chief Financial Officer, to implement a case-by-case approach, in their sole discretion, forgive, extend or otherwise amend Provincial loan agreements with Housing Services Act, 2011, Part VII Community Housing Providers that have been transferred to the City of Toronto.</p>
<p> </p>
<p>8. City Council direct the Executive Director, Housing Secretariat to continue to advocate with the provincial and federal governments for increased, predictable, and sustainable funding to address the capital repair needs of Community Housing Providers.</p>
<p> </p>
<p>9. City Council request the Government of Ontario to allow residents of community housing projects that are exempted from taxation for municipal and school purposes to be eligible for the Ontario Energy and Property Tax Credit component of the Ontario Trillium Benefit.</p>
<p> </p>
<p>10. City Council enact a site specific by-law amending the criteria for "Affordable Housing" in the Toronto Municipal Code Chapter 513, Housing Programs as set out in Part 1 above, to exempt a total of 142 affordable rental housing units at the addresses listed in Table 5 to this report (March 27, 2025) from the Executive Director, Housing Secretariat, owned and operated by Houselink and Mainstay Community Housing from the restriction that affordable rental housing units be “new” to meet the definition of Affordable Housing in the Toronto Municipal Code Chapter 513, Housing Programs as set out in Part 1 above.</p>
<p> </p>
<p>11. City Council authorize the Executive Director, Housing Secretariat to negotiate and enter into, on behalf of the City, a Municipal Housing Project Facility Agreement (the “City's Contribution Agreement”) with Houselink and Mainstay Community Housing as further described in Table 4 in the Financial Impact section of this report (March 27, 2025) from the Executive Director, Housing Secretariat, to secure affordable housing in accordance with the Toronto Municipal Code Chapter 513, Housing Programs as set out in Part 1 above, on terms and conditions satisfactory to the Executive Director, Housing Secretariat, and in a form approved by the City Solicitor.</p>
<p> </p>
<p>12. City Council authorize an exemption from taxation for municipal and school purposes for Houselink and Mainstay Community Housing for the properties and periods of time described in Table 4 in the Financial Impact section of this report (March 27, 2025) from the Executive Director, Housing Secretariat, with the tax exemption being effective from the Effective Date as set out in the City's Municipal Housing Project Facility Agreement.</p>
<p> </p>
<p>13. City Council authorize the Chief Financial Officer and Treasurer to cancel or refund any taxes paid after the Effective Date of the Municipal Housing Project Facility Agreement with Houselink and Mainstay Community Housing.</p>
<p> </p>
<p>14. City Council authorize the City Solicitor to introduce the necessary Bills and make such stylistic and technical changes to the draft Toronto Municipal Code Chapter 513, Housing Programs as may be required.</p> | <p><span style="font-family: 'times new roman', times;"><strong><span style="line-height: 107%;">Entering into a Municipal Housing Project Facility Agreement with Community Housing Providers under the Housing Services Act Part VII.1 </span></strong></span></p>
<p><span style="font-family: 'times new roman', times;"><br />The City of Toronto as Service Manager is responsible for administering and funding transferred social housing programs under the Housing Services Act. In 2022, the Province of Ontario introduced a new regulatory framework for Part VII Community Housing Providers to enter into a new Service Agreement with the City, that sets out a renewed operating and funding framework governed under Part VII.1 of the Housing Services Act, once the housing project has reached the end of mortgage. Under the current funding model, the City, as Service Manager, subsidizes property taxes for Part VII Community Housing Providers. </span></p>
<p style="margin-bottom: 0cm; line-height: normal;"><span style="font-family: 'times new roman', times; color: black;"> </span></p>
<p style="margin-bottom: 0cm; line-height: normal;"><span style="font-family: 'times new roman', times;"><span style="color: black;">Further to Council’s adoption in June 2024 of the <em>Community Housing Sector Modernization and Growth Strategy,</em> this staff report seeks City Council authority to approve a property tax exemption for Housing Services Act Part VII.1 Community Housing Providers for a 20-year term. Based on the 2024 tax rates, the value of the </span><span style="color: black;">City’s financial incentives, is estimated at an annual amount of $23.93M for</span> <span style="color: black;">Housing Services Act Part VII Community Housing </span><span style="color: black;">Providers</span><span style="color: black;"> to be governed under Part VII.1 once they sign a Service Agreement</span><em><span style="color: black;">. </span></em><span style="color: black;">A further breakdown of the estimated value of the property tax exemptions for municipal and school purposes, including the net present value, is summarized in Table 1</span><span style="color: black;">.</span></span></p>
<p style="margin-bottom: 0cm; line-height: normal;"> </p>
<p style="margin-bottom: 0cm;"><span style="font-size: 9pt; font-family: 'times new roman', times;"><span style="font-size: 12pt;">With the introduction of a property tax exemption, the tax subsidy currently provided to Housing Services Act Part VII Community Housing Providers will be phased out. The implementation of the property tax exemption to Community Housing Providers to be governed under Part VII.1 once they sign a Service Agreement, will follow a gradual approach, taking effect upon the expiration of each housing project's mortgage the last of which will reach maturity in 2032.</span> </span></p>
<p><span style="color: windowtext; font-family: 'times new roman', times;"> </span></p>
<p><span style="font-family: 'times new roman', times;"><span style="color: windowtext;">As the City currently funds property taxes for community housing projects through an annual budget allocation, there is no net impact on the municipal portion of taxes from the Municipal Housing Project Facility exemption. The decrease in municipal tax revenue is offset by a corresponding adjustment in the annual budgetary requirement for the Housing Secretariat. The provincial education portion of property taxes, as described in Table 1, will no longer be required to be remitted to the province once the exemption takes effect; it will be retained in the Housing Secretariat’s budget to continue to support a new operating and funding framework for Community Housing Providers under Part VII.1 of the </span>Housing Services Act<span style="color: windowtext;">, t</span>o maintain or increase rent-geared-to-income (rent-geared-to-income) homes in their housing portfolio and to ensure their sustainability to address operating and repair needs long-term.<br /><br /><strong><span style="font-size: 12pt; line-height: 107%; color: black;">Table 1:</span></strong> <span style="font-size: 12pt; line-height: 107%; color: black;">Estimated Value of Tax Exemptions for Housing Projects Operated by <span style="line-height: 107%;">Housing Services Act</span> Part VII Community Housing Providers</span> <span style="font-size: 12pt; line-height: 107%; color: black;">with rent-geared-to-income and Market Units</span><br /></span></p>
<p> </p>
<table style="width: 474.65pt; border-collapse: collapse; border: none; margin-left: 6.75pt; margin-right: 6.75pt;" width="633">
<tbody>
<tr style="height: 17.1pt;">
<td style="width: 58.8pt; border: solid windowtext 1.0pt; background: #D9D9D9; padding: 0cm 5.4pt 0cm 5.4pt; height: 17.1pt;" rowspan="2" width="78">
<p style="margin-bottom: 0cm; text-align: center; line-height: normal;"><span style="font-family: 'times new roman', times;"><strong><span style="color: black;">Number of Housing Projects</span></strong></span></p>
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<td style="width: 70.8pt; border: solid windowtext 1.0pt; border-left: none; background: #D9D9D9; padding: 0cm 5.4pt 0cm 5.4pt; height: 17.1pt;" rowspan="2" width="94">
<p style="margin-bottom: 0cm; text-align: center; line-height: normal;"><span style="font-family: 'times new roman', times;"><strong><span style="color: black;">Estimated Number of Affordable Rental Homes</span></strong></span></p>
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<td style="width: 81.5pt; border: solid windowtext 1.0pt; border-left: none; background: #D9D9D9; padding: 0cm 5.4pt 0cm 5.4pt; height: 17.1pt;" rowspan="2" width="109">
<p style="margin-bottom: 0cm; text-align: center; line-height: normal;"><span style="font-family: 'times new roman', times;"><strong><span style="color: black;">Affordability Period</span></strong></span></p>
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<td style="width: 193.45pt; border: solid windowtext 1.0pt; border-left: none; background: #D9D9D9; padding: 0cm 5.4pt 0cm 5.4pt; height: 17.1pt;" colspan="3" width="258">
<p style="margin-bottom: 0cm; text-align: center; line-height: normal;"><span style="font-family: 'times new roman', times;"><strong><span style="color: black;">Property Taxes (annual)</span></strong></span></p>
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<td style="width: 70.1pt; border: solid windowtext 1.0pt; border-left: none; background: #D9D9D9; padding: 0cm 5.4pt 0cm 5.4pt; height: 17.1pt;" rowspan="2" width="93">
<p style="margin-bottom: 0cm; text-align: center; line-height: normal;"><span style="font-family: 'times new roman', times;"><strong><span style="color: black;">Estimated Net Present Value of Property Taxes*</span></strong></span></p>
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<p style="margin-bottom: 0cm; text-align: center; line-height: normal;"><span style="font-family: 'times new roman', times;"><strong><span style="color: black;">City</span></strong></span></p>
</td>
<td style="width: 70.85pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; background: #D9D9D9; padding: 0cm 5.4pt 0cm 5.4pt; height: 17.1pt;" width="94">
<p style="margin-bottom: 0cm; text-align: center; line-height: normal;"><span style="font-family: 'times new roman', times;"><strong><span style="color: black;">Education</span></strong></span></p>
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<td style="width: 57.5pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; background: #D9D9D9; padding: 0cm 5.4pt 0cm 5.4pt; height: 17.1pt;" width="77">
<p style="margin-bottom: 0cm; text-align: center; line-height: normal;"><span style="font-family: 'times new roman', times;"><strong><span style="color: black;">Total</span></strong></span></p>
</td>
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<tr style="height: 17.1pt;">
<td style="width: 58.8pt; border: solid windowtext 1.0pt; border-top: none; padding: 0cm 5.4pt 0cm 5.4pt; height: 17.1pt;" width="78">
<p style="margin-bottom: 0cm; text-align: center; line-height: normal;"><span style="font-family: 'times new roman', times; color: black;">139</span></p>
</td>
<td style="width: 70.8pt; 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: 17.1pt;" width="94">
<p style="margin-bottom: 0cm; text-align: center; line-height: normal;"><span style="font-family: 'times new roman', times; color: black;">15,925</span></p>
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<td style="width: 81.5pt; 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: 17.1pt;" width="109">
<p style="margin-bottom: 0cm; text-align: center; line-height: normal;"><span style="font-family: 'times new roman', times; color: black;">20 years</span></p>
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<td style="width: 65.1pt; 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: 17.1pt;" width="87">
<p style="margin-bottom: 0cm; text-align: center; line-height: normal;"><span style="font-family: 'times new roman', times; color: black;">$19.97M</span></p>
</td>
<td style="width: 70.85pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; padding: 0cm 5.4pt 0cm 5.4pt; height: 17.1pt;" width="94">
<p style="margin-bottom: 0cm; text-align: center; line-height: normal;"><span style="font-family: 'times new roman', times; color: black;">$ 3.96M</span></p>
</td>
<td style="width: 57.5pt; 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: 17.1pt;" width="77">
<p style="margin-bottom: 0cm; text-align: center; line-height: normal;"><span style="font-family: 'times new roman', times; color: black;">$23.93M</span></p>
</td>
<td style="width: 70.1pt; 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: 17.1pt;" width="93">
<p style="margin-bottom: 0cm; text-align: center; line-height: normal;"><span style="font-family: 'times new roman', times; color: black;">$356.11M</span></p>
</td>
</tr>
</tbody>
</table>
<p> <span style="font-family: 'times new roman', times;"><em><span style="color: black;">*based </span></em><em><span style="color: black;">on 2024 property taxes, 2024 tax rates and a Net Present Value discount rate of 3%.</span></em></span></p>
<p><span style="font-family: 'times new roman', times;"><em><span style="color: windowtext;"> </span></em></span></p>
<p><span style="font-family: 'times new roman', times;"><em><span style="color: windowtext;">City Loan Agreements </span></em></span></p>
<p><span style="font-family: 'times new roman', times;"><em><span style="color: windowtext;"> </span></em></span></p>
<p style="margin-bottom: 0cm; line-height: normal;"><span style="font-family: 'times new roman', times;">The Social Housing Stabilization Reserve Fund was established by City Council in October 2001, as a discretionary reserve fund of the City. The Social Housing Federal Reserve Fund was established by City Council at its May 2003 meeting. Both funds were established to mitigate financial exposure associated with the devolution of social housing to the City and to offset capital reserve shortfalls where urgent capital repair needs emerged. These funds provided a reserve to support Community Housing Providers in maintaining their housing projects in a state of good repair. </span></p>
<p><span style="color: windowtext; font-family: 'times new roman', times;"> </span></p>
<p><span style="font-family: 'times new roman', times;">As identified in Table 2, the City disbursed a total of $22.62M in loans from the Stabilization Reserve Fund and Social Housing Federal Reserve Fund to Community Housing Providers to support maintaining their housing projects in a state of good repair. These loans were distributed with an interest rate of prime plus 1% with terms for repayment to the City.</span></p>
<p><span style="font-family: 'times new roman', times;"> </span></p>
<p><span style="font-family: 'times new roman', times;"><span style="line-height: 107%;">This report recommends that City Council authorize the Executive Director, Housing Secretariat, together with the Chief Financial Officer and Treasurer, to forgive, extend, or otherwise amend the financial terms of existing City loan agreements disbursed from the</span><span style="line-height: 107%;"> Stabilization Reserve Fund and Social Housing Federal Reserve Fund</span><span style="line-height: 107%;"> as identified in Table 2, on a case-by-case basis analysis of the Community Housing Provider’s current and future operating and capital needs.<br /><br /></span></span></p>
<p><span style="line-height: 107%; font-family: 'times new roman', times;">Should any City loan agreements be forgiven, the City will forgo the associated repayment revenue, resulting in forgone City revenues, including the replenishment of the Social Housing Stabilization Reserve Fund and the Social Housing Federal Reserve Fund.</span></p>
<p> </p>
<p style="margin-bottom: 0cm; text-align: justify; line-height: normal;"><span style="font-family: 'times new roman', times;"><strong>Table 2:</strong> Summary of City Loans for Housing Projects Operated by Community Housing Providers <span style="color: black;"><br /> <br /> </span></span></p>
<table style="width: 447.0pt; border-collapse: collapse; border: none;" width="596">
<tbody>
<tr style="height: 9.0pt;">
<td style="width: 205.55pt; border: solid windowtext 1.0pt; background: #D9D9D9; padding: 0cm 5.4pt 0cm 5.4pt; height: 9.0pt;" width="274">
<p style="margin-bottom: 0cm; text-align: center; line-height: normal;"><span style="font-family: 'times new roman', times;"><strong>Housing Program Type</strong></span></p>
</td>
<td style="width: 120.5pt; border: solid windowtext 1.0pt; border-left: none; background: #D9D9D9; padding: 0cm 5.4pt 0cm 5.4pt; height: 9.0pt;" width="161">
<p style="margin-bottom: 0cm; text-align: center; line-height: normal;"><span style="font-family: 'times new roman', times;"><strong><span style="color: black;">Number of Loans</span></strong></span></p>
</td>
<td style="width: 120.95pt; border: solid windowtext 1.0pt; border-left: none; background: #D9D9D9; padding: 0cm 5.4pt 0cm 5.4pt; height: 9.0pt;" width="161">
<p style="margin-bottom: 0cm; text-align: center; line-height: normal;"><span style="font-family: 'times new roman', times;"><strong><span style="color: black;">Loans</span></strong></span></p>
<p style="margin-bottom: 0cm; text-align: center; line-height: normal;"><span style="font-family: 'times new roman', times;"><strong><span style="color: black;">Advanced</span></strong></span></p>
</td>
</tr>
<tr style="height: 64.8pt;">
<td style="width: 205.55pt; border: solid windowtext 1.0pt; border-top: none; padding: 0cm 5.4pt 0cm 5.4pt; height: 64.8pt;" width="274">
<p style="margin-bottom: 0cm; text-align: center; line-height: normal;"><span style="font-family: 'times new roman', times;"><strong>Housing Services Act Part VII Housing Projects with rent-geared-to-income and Market<br /> <br /> </strong></span></p>
</td>
<td style="width: 120.5pt; 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: 64.8pt;" width="161">
<p style="margin-bottom: 0cm; text-align: center; line-height: normal;"><span style="font-family: 'times new roman', times;">14</span></p>
</td>
<td style="width: 120.95pt; 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: 64.8pt;" width="161">
<p style="margin-bottom: 0cm; text-align: center; line-height: normal;"><span style="font-family: 'times new roman', times;">$19,844,180</span></p>
</td>
</tr>
<tr style="height: 64.8pt;">
<td style="width: 205.55pt; border: solid windowtext 1.0pt; border-top: none; padding: 0cm 5.4pt 0cm 5.4pt; height: 64.8pt;" width="274">
<p style="margin-bottom: 0cm; text-align: right; line-height: normal;"><span style="font-family: 'times new roman', times;"><strong>Housing Services Act Part VII Housing Projects with 100% rent-geared-to-income </strong></span></p>
</td>
<td style="width: 120.5pt; 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: 64.8pt;" width="161">
<p style="margin-bottom: 0cm; text-align: center; line-height: normal;"><span style="font-family: 'times new roman', times;">0</span></p>
</td>
<td style="width: 120.95pt; 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: 64.8pt;" width="161">
<p style="margin-bottom: 0cm; text-align: center; line-height: normal;"><span style="font-family: 'times new roman', times;">0</span></p>
</td>
</tr>
<tr style="height: 64.8pt;">
<td style="width: 205.55pt; border: solid windowtext 1.0pt; border-top: none; padding: 0cm 5.4pt 0cm 5.4pt; height: 64.8pt;" width="274">
<p style="margin-bottom: 0cm; text-align: center; line-height: normal;"><span style="font-family: 'times new roman', times;"><strong>Federal Section 95 Private Non-Profit Housing Program and Federal Section 26/27 Housing Program</strong></span></p>
</td>
<td style="width: 120.5pt; 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: 64.8pt;" width="161">
<p style="margin-bottom: 0cm; text-align: center; line-height: normal;"><span style="font-family: 'times new roman', times;">2</span></p>
</td>
<td style="width: 120.95pt; 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: 64.8pt;" width="161">
<p style="margin-bottom: 0cm; text-align: center; line-height: normal;"><span style="font-family: 'times new roman', times;">$2,783,700</span></p>
</td>
</tr>
<tr style="height: 30.15pt;">
<td style="width: 205.55pt; border: solid windowtext 1.0pt; border-top: none; padding: 0cm 5.4pt 0cm 5.4pt; height: 30.15pt;" width="274">
<p style="margin-bottom: 0cm; text-align: right; line-height: normal;"><span style="font-family: 'times new roman', times;"><strong><span style="color: black;">Total</span></strong></span></p>
</td>
<td style="width: 120.5pt; 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: 30.15pt;" width="161">
<p style="margin-bottom: 0cm; text-align: center; line-height: normal;"><span style="font-family: 'times new roman', times;">16</span></p>
</td>
<td style="width: 120.95pt; 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: 30.15pt;" width="161">
<p style="margin-bottom: 0cm; text-align: center; line-height: normal;"><span style="font-family: 'times new roman', times;">$22,627,880</span></p>
</td>
</tr>
</tbody>
</table>
<p><span style="font-family: 'times new roman', times;"><em><span style="color: windowtext;"> </span></em></span></p>
<p><span style="font-family: 'times new roman', times;"><em><span style="color: windowtext;">Provincial Loan Agreements </span></em></span></p>
<p><span style="font-family: 'times new roman', times;"><em><span style="color: windowtext;"> </span></em></span></p>
<p><span style="line-height: 107%; font-family: 'times new roman', times;">In 2002, the Province downloaded the social housing portfolio to the City through the <em>Social Housing Reform Act, 2002</em>. Through this, the City acquired all existing financing instruments associated with the social housing stock. This included the transfer of Provincial loan agreements entered into with various Community Housing Providers. Upon transfer of the Provincial loan agreements, the City became entitled to the receipt loan repayments owed by Community Housing Providers. </span></p>
<p> </p>
<p><span style="font-family: 'times new roman', times;"><span style="line-height: 107%;">A total of $18.29M in loans, as identified in Table 3, has been disbursed by the Province to Community Housing Providers prior to the download of social housing to the City in 2002.</span> <span style="line-height: 107%;">Upon review of the Provincial loan agreements, the City determined repayment terms were not included in all agreements. As such, the City has no obligation to return any loan payments received, whether principal or interest, to the Province. Should any Provincial loan agreements be forgiven, the City will forgo the associated repayment revenue, resulting in forgone City revenues.</span></span></p>
<p> </p>
<p><span style="line-height: 107%; font-family: 'times new roman', times;">The Executive Director, Housing Secretariat has the delegated authority as Service Manager under the Housing Services Act to make decisions regarding the repayment of these provincial loans. This report recommends that City Council direct the Executive Director, Housing Secretariat together with the Chief Financial Officer and Treasurer to forgive, extend, or otherwise amend the financial terms of existing Provincial loan agreements as identified in Table 3, based on a case-by-case analysis of the Community Housing Provider’s current and future operating and capital needs.</span></p>
<p><span style="font-family: 'times new roman', times;"><strong><span style="line-height: 107%;"><br />Table 3:</span></strong><span style="line-height: 107%;"> Summary of Provincial Loans for Housing Projects Operated by Community Housing Providers</span></span></p>
<p> </p>
<table style="width: 447.6pt; border-collapse: collapse; border: none;" width="597">
<tbody>
<tr style="height: 8.4pt;">
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<p style="margin-bottom: 0cm; text-align: center; line-height: normal;"><span style="font-family: 'times new roman', times;"><strong>Housing Program Type</strong></span></p>
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<td style="width: 120.5pt; border: solid windowtext 1.0pt; border-left: none; background: #D9D9D9; padding: 0cm 5.4pt 0cm 5.4pt; height: 8.4pt;" width="161">
<p style="margin-bottom: 0cm; text-align: center; line-height: normal;"><span style="font-family: 'times new roman', times;"><strong><span style="color: black;">Number of Loans</span></strong></span></p>
</td>
<td style="width: 121.55pt; border: solid windowtext 1.0pt; border-left: none; background: #D9D9D9; padding: 0cm 5.4pt 0cm 5.4pt; height: 8.4pt;" width="162">
<p style="margin-bottom: 0cm; text-align: center; line-height: normal;"><span style="font-family: 'times new roman', times;"><strong><span style="color: black;">Loans</span></strong></span></p>
<p style="margin-bottom: 0cm; text-align: center; line-height: normal;"><span style="font-family: 'times new roman', times;"><strong><span style="color: black;">Advanced</span></strong></span></p>
</td>
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<tr style="height: 60.0pt;">
<td style="width: 205.55pt; border: solid windowtext 1.0pt; border-top: none; padding: 0cm 5.4pt 0cm 5.4pt; height: 60.0pt;" width="274">
<p style="margin-bottom: 0cm; text-align: center; line-height: normal;"><span style="font-family: 'times new roman', times;"><strong>Housing Services Act Part VII Housing Projects with rent-geared-to-income and Market<br /> <br /> </strong></span></p>
</td>
<td style="width: 120.5pt; 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: 60.0pt;" width="161">
<p style="margin-bottom: 0cm; text-align: center; line-height: normal;"><span style="font-family: 'times new roman', times;">24</span></p>
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<p style="margin-bottom: 0cm; text-align: center; line-height: normal;"><span style="font-family: 'times new roman', times;">$17,435,905</span></p>
</td>
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<tr style="height: 57.05pt;">
<td style="width: 205.55pt; border: solid windowtext 1.0pt; border-top: none; padding: 0cm 5.4pt 0cm 5.4pt; height: 57.05pt;" width="274">
<p style="margin-bottom: 0cm; text-align: center; line-height: normal;"><span style="font-family: 'times new roman', times;"><strong>Housing Services Act Part VII Housing Projects with 100% rent-geared-to-income<br /> <br /> </strong></span></p>
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<td style="width: 120.5pt; 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: 57.05pt;" width="161">
<p style="margin-bottom: 0cm; text-align: center; line-height: normal;"><span style="font-family: 'times new roman', times;">4</span></p>
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<td style="width: 121.55pt; 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: 57.05pt;" width="162">
<p style="margin-bottom: 0cm; text-align: center; line-height: normal;"><span style="font-family: 'times new roman', times;">$854,350</span></p>
</td>
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<tr style="height: 57.05pt;">
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<p style="margin-bottom: 0cm; text-align: center; line-height: normal;"><span style="font-family: 'times new roman', times;"><strong>Federal Section 95 Private Non-Profit Housing Program and Federal Section 26/27 Housing Program</strong></span></p>
</td>
<td style="width: 120.5pt; 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: 57.05pt;" width="161">
<p style="margin-bottom: 0cm; text-align: center; line-height: normal;"><span style="font-family: 'times new roman', times;">0</span></p>
</td>
<td style="width: 121.55pt; 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: 57.05pt;" width="162">
<p style="margin-bottom: 0cm; text-align: center; line-height: normal;"><span style="font-family: 'times new roman', times;">0</span></p>
</td>
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<tr style="height: 30.75pt;">
<td style="width: 205.55pt; border: solid windowtext 1.0pt; border-top: none; padding: 0cm 5.4pt 0cm 5.4pt; height: 30.75pt;" width="274">
<p style="margin-bottom: 0cm; text-align: right; line-height: normal;"><span style="font-family: 'times new roman', times;"><strong><span style="color: black;">Total</span></strong></span></p>
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<td style="width: 120.5pt; 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: 30.75pt;" width="161">
<p style="margin-bottom: 0cm; text-align: center; line-height: normal;"><span style="font-family: 'times new roman', times;"><strong>28</strong></span></p>
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<td style="width: 121.55pt; 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: 30.75pt;" width="162">
<p style="margin-bottom: 0cm; text-align: center; line-height: normal;"><span style="font-family: 'times new roman', times;"><strong>$18,290,255 </strong></span></p>
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<p><span style="font-family: 'times new roman', times;"><strong><span style="line-height: 107%;"> </span></strong></span></p>
<p><span style="font-family: 'times new roman', times;"><strong><span style="line-height: 107%;">Entering into a Municipal Housing Project Facility Agreement with Houselink and Mainstay Community Housing<br /><br /></span></strong></span></p>
<p><span style="font-family: 'times new roman', times;">This report seeks City Council authority to enter into a Municipal Housing Project Facility Agreement with Houselink and Mainstay Community Housing, for a total of 142 affordable rental homes for Canadian Veteran’s and their families for a 20-year term. The estimated total net present value of the property tax exemptions over the relevant affordability periods is shown in Table 4. The incentives in Table 4 are not direct payments from the City. The financial impact for the City from the exemption will be foregone revenue from the City portion of property taxes shown in Table 4. </span></p>
<p><span style="font-family: 'times new roman', times;"> </span></p>
<p><span style="font-family: 'times new roman', times;"><strong>Table 4:</strong> Estimated Value of Tax Exemptions for Houselink and Mainstay Community Housing<strong><span style="color: black;"><br /> <br /> </span></strong></span></p>
<table style="width: 616.771px; margin-left: -0.4pt; border-collapse: collapse; border: none;">
<tbody>
<tr style="height: 25.25pt;">
<td style="width: 76px; border: 1pt solid windowtext; background: #d9d9d9; padding: 0cm; height: 25.25pt;" rowspan="2">
<p style="margin-bottom: 0cm; text-align: center; line-height: normal; vertical-align: baseline;"><span style="font-family: 'times new roman', times;"><strong><span style="color: black;">Housing Provider</span></strong></span></p>
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<p style="margin-bottom: 0cm; text-align: center; line-height: normal; vertical-align: baseline;"><span style="font-family: 'times new roman', times;"><strong><span style="color: black;">Estimated Number of Affordable Rental Homes</span></strong><span style="color: black;"> </span></span></p>
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<td style="width: 94px; border-top: 1pt solid windowtext; border-right: 1pt solid windowtext; border-bottom: 1pt solid windowtext; border-image: initial; border-left: none; background: #d9d9d9; padding: 0cm; height: 25.25pt;" rowspan="2">
<p style="margin-bottom: 0cm; text-align: center; line-height: normal; vertical-align: baseline;"><span style="font-family: 'times new roman', times;"><strong><span style="color: black;">Affordability Period</span></strong><span style="color: black;"> </span></span></p>
</td>
<td style="width: 230px; border-top: 1pt solid windowtext; border-right: 1pt solid windowtext; border-bottom: 1pt solid windowtext; border-image: initial; border-left: none; background: #d9d9d9; padding: 0cm; height: 25.25pt;" colspan="3">
<p style="margin-bottom: 0cm; text-align: center; line-height: normal; vertical-align: baseline;"><span style="font-family: 'times new roman', times;"><strong><span style="color: black;">Property Taxes (annual)</span></strong><span style="color: black;"> </span></span></p>
</td>
<td style="width: 112.771px; border-top: 1pt solid windowtext; border-right: 1pt solid windowtext; border-bottom: 1pt solid windowtext; border-image: initial; border-left: none; background: #d9d9d9; padding: 0cm; height: 25.25pt;" rowspan="2">
<p style="margin-bottom: 0cm; text-align: center; line-height: normal; vertical-align: baseline;"><span style="font-family: 'times new roman', times;"><strong><span style="color: black;">Estimated Net Present Value of Property Taxes*</span></strong><span style="color: black;"> </span></span></p>
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<p style="margin-bottom: 0cm; text-align: center; line-height: normal; vertical-align: baseline;"><span style="font-family: 'times new roman', times;"><strong>City</strong></span></p>
</td>
<td style="width: 82px; border-top: none; border-left: none; border-bottom: 1pt solid windowtext; border-right: 1pt solid windowtext; background: #d9d9d9; padding: 0cm; height: 26.8pt;">
<p style="margin-bottom: 0cm; text-align: center; line-height: normal; vertical-align: baseline;"><span style="font-family: 'times new roman', times;"><strong><span style="color: black;">Education</span></strong><span style="color: black;"> </span></span></p>
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<td style="width: 73px; border-top: none; border-left: none; border-bottom: 1pt solid windowtext; border-right: 1pt solid windowtext; background: #d9d9d9; padding: 0cm; height: 26.8pt;">
<p style="margin-bottom: 0cm; text-align: center; line-height: normal; vertical-align: baseline;"><span style="font-family: 'times new roman', times;"><strong><span style="color: black;">Total</span></strong><span style="color: black;"> </span></span></p>
</td>
</tr>
<tr style="height: 49.65pt;">
<td style="width: 76px; border-right: 1pt solid windowtext; border-bottom: 1pt solid windowtext; border-left: 1pt solid windowtext; border-image: initial; border-top: none; padding: 0cm; height: 49.65pt;">
<p style="margin-bottom: 0cm; text-align: center; line-height: normal; vertical-align: baseline;"><span style="font-family: 'times new roman', times; color: black;">Houselink and Mainstay Community Housing – Finchurst Site</span></p>
</td>
<td style="width: 91px; border-top: none; border-left: none; border-bottom: 1pt solid windowtext; border-right: 1pt solid windowtext; padding: 0cm; height: 49.65pt;">
<p style="margin-bottom: 0cm; text-align: center; line-height: normal; vertical-align: baseline;"><span style="font-family: 'times new roman', times;">142</span></p>
</td>
<td style="width: 94px; border-top: none; border-left: none; border-bottom: 1pt solid windowtext; border-right: 1pt solid windowtext; padding: 0cm; height: 49.65pt;">
<p style="margin-bottom: 0cm; text-align: center; line-height: normal; vertical-align: baseline;"><span style="font-family: 'times new roman', times; color: black;">20 years </span></p>
</td>
<td style="width: 75px; border-top: none; border-left: none; border-bottom: 1pt solid windowtext; border-right: 1pt solid windowtext; padding: 0cm; height: 49.65pt;">
<p style="margin-bottom: 0cm; text-align: center; line-height: normal; vertical-align: baseline;"><span style="font-family: 'times new roman', times; color: black;">$172,439</span></p>
</td>
<td style="width: 82px; border-top: none; border-left: none; border-bottom: 1pt solid windowtext; border-right: 1pt solid windowtext; padding: 0cm; height: 49.65pt;">
<p style="margin-bottom: 0cm; text-align: center; line-height: normal; vertical-align: baseline;"><span style="font-family: 'times new roman', times; color: black;">$26,135</span></p>
</td>
<td style="width: 73px; border-top: none; border-left: none; border-bottom: 1pt solid windowtext; border-right: 1pt solid windowtext; padding: 0cm; height: 49.65pt;">
<p style="margin-bottom: 0cm; text-align: center; line-height: normal; vertical-align: baseline;"><span style="font-family: 'times new roman', times; color: black;">$198,574</span></p>
</td>
<td style="width: 112.771px; border-top: none; border-left: none; border-bottom: 1pt solid windowtext; border-right: 1pt solid windowtext; padding: 0cm; height: 49.65pt;">
<p style="margin-bottom: 0cm; text-align: center; line-height: normal; vertical-align: baseline;"><span style="font-family: 'times new roman', times; color: black;">$2,954,287</span></p>
</td>
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<tr style="height: 18.6pt;">
<td style="width: 603.771px; border: none; padding: 0cm; height: 18.6pt;" colspan="7">
<p style="margin-bottom: 0cm; text-align: center; line-height: normal; vertical-align: baseline;"><span style="font-family: 'times new roman', times;"><em><span style="color: black;">*based on 2024 property taxes, 2024 tax rates and a Net Present Value discount rate of 3%.<br /> <br /> </span></em></span></p>
</td>
</tr>
</tbody>
</table>
<p><span style="font-size: 11pt; line-height: 107%; font-family: 'times new roman', times;">The Chief Financial Officer and Treasurer has reviewed this report and agrees with the financial impact information.</span></p> | <p>In June 2024, City Council adopted PH13.9 - <em>Community Housing Sector Modernization and Growth Strategy</em> (“Strategy”), which recommended a new approach to protect the City's existing community housing stock. The strategy included a focused initiative on renewing partnerships with Community Housing Providers with expiring mortgages under the Housing Services Act 2011 (HSA), Part VII.</p>
<p> </p>
<p>To further advance the actions adopted by Council through the <em>Community Housing Sector Modernization and Growth</em> <em>Strategy</em> to support the operational and capital needs of Community Housing Providers, this staff report recommends Community Housing Providers to be governed under the Housing Services Act Part VII.1, enter into a Municipal Housing Project Facility Agreement to maintain units at an affordable rent, in exchange for a property tax exemption for an initial twenty-year period. The property tax exemption will continue to provide financial relief that is already provided by the subsidy paid under Part VII of the Housing Services Act funding formula.</p>
<p> </p>
<p>Providing property tax exemptions to these community housing projects will help maintain over 16,000 affordable rental homes in a state of good repair, preserving some of the City’s most affordable homes for residents. This report also recommends that the City amend any existing loan agreements between the City and Community Housing Providers who enter into a Service Agreement, on a case-by-case basis where necessary.</p>
<p> </p>
<p>In addition, a site-specific property tax exemption is recommended for Houselink and Mainstay Community Housing (“Houselink”) for eight buildings located at their newly acquired Finchurst site, which will ensure the on-going affordability for 142 homes of this former federal housing project that supports military veterans and their families.</p> | 20 | 6 | CMMTTEE | PH | All | N | 1745380800000 | … | Report | ACTION | Adopted | Main | — | — | Committee | … | … | … | … | … | … | … | … | … | … | … | Decision information not found | false | Adopted | — | … | … | … | … | — | — | — | — |