| 146587 | REPORT | N | Y | MAIN | ACTION | AMENDED | — | N | — | Building Toronto's Housing Future - Housing Development Office 2026 Annual Toronto Builds Update and Three-Year Work Plan | 2026.PH30.6 | — | Y | Y | Y | Y | <p>The Deputy City Manager, Development and Growth Services recommends that:</p>
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<p><strong>Housing Development Office Three-Year Work Plan</strong></p>
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<p>1. City Council forward this item, except for Confidential Attachment 3, to the Board of Directors of CreateTO and request the Board keep Confidential Attachments 1 and 2 confidential as they contain a position, plan, procedure, criteria or instruction to be applied to any negotiations carried on or to be carried on by or on behalf of the City; and contains financial information, supplied in confidence to the City of Toronto, which, if disclosed, could reasonably be expected to prejudice significantly the competitive position or interfere significantly with the contractual or other negotiations of a person, group of persons, or organization, and request the Board to consider adopting the Housing Development Office Three-Year Work Plan detailed in Attachment 1 to guide the prioritization of redevelopment of public land managed by its holding corporations, Build Toronto and Toronto Port Lands Company.</p>
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<p>2. City Council forward this item, except for Confidential Attachments 2 and 3 to the Board of Directors of Toronto Community Housing Corporation (TCHC) and request the Board keep Confidential Attachment 1 confidential as it contains a position, plan, procedure, criteria or instruction to be applied to any negotiations carried on or to be carried on by or on behalf of the City; and contains financial information, supplied in confidence to the City of Toronto, which, if disclosed, could reasonably be expected to prejudice significantly the competitive position or interfere significantly with the contractual or other negotiations of a person, group of persons, or organization, and request the Board to consider adopting the Housing Development Office Three-Year Work Plan detailed in Attachment 1 to guide the redevelopment of public land managed by TCHC as well as the TCHC revitalization projects on its lands.</p>
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<p><strong>Allocating Capital Funding to Housing Development Projects</strong></p>
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<p>3. City Council request the Government of Canada, through Build Canada Homes to provide the City of Toronto $557.5 million in capital funding to support the creation of approximately 4,000 rental homes in the next 12-18 months.</p>
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<p>4. City Council authorize the Executive Director, Housing Development Office, in consultation with Executive Director, Housing Secretariat and the Deputy City Manager, Development and Growth Services, to allocate existing capital funding to the prioritized Toronto Builds projects listed in Table 1 of Confidential Attachment 1 to the report (April 23, 2026) from the Deputy City Manager, Development and Growth Services in an amount not to exceed $217.5 million in the 2026-2035 Capital Budget and Plan of the Housing Secretariat and the Housing Development Office.</p>
<p> </p>
<p>5. City Council authorize the Executive Director, Housing Development Office, in consultation with Executive Director, Housing Secretariat and the Deputy City Manager, Development and Growth Services, to allocate existing capital funding to the prioritized City-supported projects with Community Housing Provider proponents listed in Table 2 of Confidential Attachment 1 to the report (April 23, 2026) from the Deputy City Manager, Development and Growth Services, subject to the maximum allowable funding allocation under the Rental Housing Supply Program, in an amount not to exceed $34.6 million in the 2026-2035 Capital Budget and Plan of the Housing Secretariat and the Housing Development Office.</p>
<p> </p>
<p>6. City Council authorize each of the Executive Director, Housing Development Office and Executive Director, Housing Secretariat, severally to negotiate and enter into, on behalf of the City, a municipal housing facility agreement ("Contribution Agreement") or amendments to existing Contribution Agreements with the proponents or related entities listed in Table 2 of Confidential Attachment 1 to the report (April 23, 2026) from the Deputy City Manager, Development and Growth Services or with the proponents chosen through the market offering processes undertaken for each of the Toronto Builds projects, for funding and to set out the terms of the development and operation of affordable rental housing, on terms and conditions satisfactory to the Executive Director, Housing Development Office, in consultation with the Executive Director, Housing Secretariat, and in a form satisfactory to the City Solicitor.</p>
<p> </p>
<p>7. City Council direct that Confidential Attachments 1, 2 and 3 remain confidential at this time as they pertain to a position, plan, procedure, criteria or instruction to be applied to any negotiations carried on or to be carried on by or on behalf of the City; and contain financial information, supplied in confidence to the City of Toronto, which, if disclosed, could reasonably be expected to prejudice significantly the competitive position or interfere significantly with the contractual or other negotiations of a person, group of persons, or organization, and direct that Confidential Recommendations 2 to 9 in Confidential Attachment 2, if adopted by City Council, be made public following the execution of the site-specific definitive project agreements for 72 Amroth Avenue, and that the remaining confidential information in Confidential Attachments 1, 2 and 3 be made public at the discretion of the Deputy City Manager, Development and Growth Services.</p>
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<p><strong>Advancing Other City-Led Housing Projects</strong></p>
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<p>8. City Council authorize the Deputy City Manager, Corporate Services, when transacting with Toronto Community Housing Corporation in relation to Toronto Builds projects, to approve nominal transactions, and execute leases for a term of up to 99 years, related real estate agreements and documents, for the purpose of achieving the City's affordable housing objectives, on terms and conditions satisfactory to the Deputy City Manager, Corporate Services, the Executive Director, Housing Development Office and the Chief Financial Officer and Treasurer, and in a form approved by the City Solicitor.</p>
<p> </p>
<p>9. City Council authorize, severally, each of the Executive Director, Housing Secretariat and the Executive Director, Housing Development Office, to negotiate and enter into, on behalf of the City, a municipal housing facility agreement (the City's Contribution Agreement) with Toronto Community Housing Corporation or a related entity for 405 Sherbourne Street and 150 Queens Wharf Road, to secure the financial assistance being provided and set out the terms of the operation of the affordable rental housing, on terms and conditions satisfactory to the Executive Director, Housing Secretariat, the Executive Director, Housing Development Office and the Chief Financial Officer and Treasurer, and in a form approved by the City Solicitor.</p>
<p> </p>
<p>10. City Council authorize the Executive Director, Corporate Real Estate Management in consultation with the General Manager, Parks and Recreation and the Executive Director, Housing Development Office, to negotiate and execute a licence agreement and/or any other agreements with Toronto Community Housing Corporation, for use and occupation of the parkland at 170 Queens Wharf Road, to facilitate the construction of the building at 150 Queens Wharf Road, on terms and conditions satisfactory to the Executive Director, Corporate Real Estate Management and the Chief Financial Officer and Treasurer and in a form approved by the City Solicitor.</p>
<p> </p>
<p>11. City Council authorize the General Manager, Parks and Recreation, in consultation with the Executive Director, Corporate Real Estate Management, and the Executive Director, Housing Development Office, to negotiate, approve and enter into, on behalf of the City, a project delivery agreement with Toronto Community Housing Corporation and its vendors to design, construct, and deliver a park at 170 Queens Wharf Road on behalf of the City, known as Lower Garrison Creek Park, on terms and conditions satisfactory to the General Manager, Parks and Recreation and the Chief Financial Officer and Treasurer, and in a form satisfactory to the City Solicitor and to ensure that the park project is delivered by qualified contractor approved by the General Manager, Parks and Recreation, the park is constructed expeditiously in advance of the building occupancy, and the project is carried out in close collaboration with relevant City divisions and stakeholders.</p>
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<p>12. City Council adopt the confidential instructions to staff in Confidential Attachment 2 to this report (April 23, 2026) from the Deputy City Manager, Development and Growth Services.</p>
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<p><strong>Property Tax Exemption Approvals for Affordable Rental and Supportive Homes</strong></p>
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<p>13. City Council authorize an exemption from taxation for municipal and school purposes for the affordable rental homes as listed and for the periods of time described in Attachment 2 of this report (April 23, 2026) from the Deputy City Manager, Development and Growth Services.</p>
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<p>14. City Council authorize the Executive Director, Housing Secretariat to negotiate and enter into, on behalf of the City, a municipal housing facility agreement (the City's Contribution Agreement) with Toronto Community Housing Corporation for the Lawrence Heights Phase 1A, 1B, 1E and Phase 1F and Regent Park Phase 4A properties described in Attachment 2 of this report, to provide an exemption from taxation for municipal and school purposes for the 99-year affordability period in accordance with the Toronto Municipal Code Chapter 513, Housing Programs, on terms and conditions satisfactory to the Executive Director, Housing Secretariat and Chief Financial Officer and Treasurer, in a form approved by the City Solicitor.</p>
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<p>15. City Council authorize the Controller and Chief Accountant to cancel or refund any taxes paid after the effective date of the exemption from taxation for municipal and school purposes as set out in the applicable municipal housing facility agreement.</p>
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<p><strong>Updating Delegating Authorities</strong></p>
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<p>16. City Council authorize, severally, the Executive Director, Housing Development Office and Executive Director, Housing Secretariat to negotiate and enter into, on behalf of the City, municipal housing facility agreements with eligible proponents pursuant to the Rental Housing Supply Program (the “Contribution Agreement”) for the funding and/or provision of financial incentives for affordable rental housing, and to set out the terms of the development and operation of affordable rental housing, on terms and conditions satisfactory to the Executive Director, Housing Development Office, Executive Director, Housing Secretariat and the Chief Financial Officer and Treasurer and in a form satisfactory to the City Solicitor.</p>
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<p>17. City Council authorize severally, the Executive Director, Housing Development Office and Executive Director, Housing Secretariat to enter into any security or financing documents, or any other documents required to facilitate the delivery of affordable housing units approved under the City’s Rental Housing Supply Program, to complete pre-development activities, construction and secure conventional financing, where required, including any postponement, 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 as set out in Recommendation 16, on terms and conditions satisfactory to the Chief Financial Officer and Treasurer.</p>
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<p>18. City Council amend Item 2024.EX18.2, Recommendation 13 by reassigning the authority previously provided to the Executive Director, Housing Secretariat to the Executive Director, Housing Development Office and so that it now reads as follows:</p>
<p> </p>
<p style="padding-left: 30px;">City Council authorize the Executive Director, Housing Development Office, in consultation with the Chief Financial Officer and Treasurer, to enter into agreements, pursuant to Section 27 of the Development Charges Act, to defer the payment of development charges payable in relation to purpose-built rental units within projects approved through the 2024 Call for Applications pursuant to the Purpose-Built Rental stream of the Rental Housing Supply Program, for as long as they remain as purpose-built rental containing at least 20 percent affordable units and on such other terms and conditions as may be satisfactory to the Executive Director, Housing Development Office and in a form satisfactory to the City Solicitor.</p>
<p> </p>
<p>19. City Council authorize severally, the Executive Director, Housing Development Office and Executive Director, Housing Secretariat to negotiate and enter into pre-development funding agreements and escrow agreements to secure the financial assistance for affordable rental housing, in accordance with the City’s Pilot Community Housing Pre-Development Fund (CHPF) program, in a form satisfactory to the City Solicitor.</p>
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<p>20. City Council authorize the Executive Director, Housing Secretariat, in consultation with the Chief Financial Officer and Treasurer, to negotiate and enter into on behalf of the City of Toronto any agreements necessary to facilitate and advance the development of modular attainable home ownership sites under the Toronto New Deal Initiative, provided that the Chief Financial Officer and Treasurer agrees that those agreements do not give rise to any financial commitments on the part of the City, or commit the use of City-owned land, including but not limited to:</p>
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<p style="padding-left: 30px;">a. Any Memoranda of Understanding with His Majesty the King in right of Ontario as represented by the Minister of Municipal Affairs and Housing, and with a non-profit deliver partner(s), on terms and conditions acceptable to the Executive Director, Housing Secretariat and the Chief Financial Officer and Treasurer, and in a form satisfactory to the City Solicitor.</p>
<p style="padding-left: 30px;"> </p>
<p style="padding-left: 30px;">b. Any Transfer Payment Agreement(s), or any other related provincial funding agreement(s), with any Ministry of the Government of Ontario, for the receipt and expenditure of provincial contributions required to support the development of the new modular attainable homeownership sites. </p>
<p style="padding-left: 30px;"> </p>
<p style="padding-left: 30px;">c. Any Program Delivery Agreement(s), with any non-profit delivery partner(s), setting out the provincial contributions to be provided for the development of new non-profit affordable and attainable ownership housing on the identified sites, and the ongoing obligations related to the delivery and operation of the program, on terms and conditions consistently with the Memorandum of Understanding and otherwise acceptable to the Executive Director, Housing Secretariat and the Chief Financial Officer and Treasurer, and in a form satisfactory to the City Solicitor.</p> | <p><strong>Build Canada Homes Funding Request for City-Led Projects (Recommendation 3)</strong></p>
<p> </p>
<p>In December 2025, the City of Toronto submitted a portfolio of City-led projects to Build Canada Homes for funding consideration. To date, the City has secured $21.6 million from Build Canada Homes for the Dunn House Phase 2 project within this portfolio and continues intergovernmental discussions to advance its remaining request for $557.5 million in capital funding to support the remaining projects.</p>
<p> </p>
<p>The City has proposed that the Build Canada Homes investment would be matched by City capital funding and waived fees and charges and tax exemptions. In addition, the City would contribute its land to the projects, the values of which were derived through a combination of appraisals and relevant land comparables.</p>
<p> </p>
<p><strong>Operating Revenue Impact - Forgone Revenues</strong></p>
<p>City Council has previously approved various financial incentives for Toronto Builds and Housing Now sites, including those included in the Build Canada Homes submission. These financial incentives include exemptions from development charges, building permit fees, planning application fees and property taxes for municipal and school purposes for the duration of affordability starting from occupancy for all affordable homes. In addition, through the Rental Housing Supply Program’s Affordable Rental and Rent Controlled Housing Incentives (ARRCHI) stream, Community Housing Providers also receive this same suite of exemptions for rent-controlled units. These incentives are not direct capital payments; rather, they represent the forgone revenues of City levies and charges.</p>
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<p>Table 1 below presents the estimated value of waived fees, charges, and property tax exemptions for affordable and qualifying rent‑controlled homes associated with the City‑led projects included in the City’s Build Canada Homes (BCH) submission, excluding Dunn House Phase 2 for which the BCH capital funding has been secured. The estimates have been updated to reflect current rates and potential changes in project size and/or eligible units. Estimates of waived fees, charges and property tax exemptions for projects included in the BCH submission not previously approved by City Council will be provided in a report back on the BCH capital funding once approved.</p>
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<p>Table 1 - Estimated Financial Incentives and Property Tax Exemptions in the Build Canada Homes Submission</p>
<table style="border-collapse: collapse; border: none;">
<thead>
<tr>
<td style="width: 155.8pt; border: solid black 1.0pt; padding: 5.75pt 5.75pt 5.75pt 5.75pt;" width="208">
<p style="text-align: center;"><strong><span style="color: windowtext;">Incentives (Waiver of Fees & Charges)</span></strong></p>
</td>
<td style="width: 155.85pt; border: solid black 1.0pt; border-left: none; padding: 5.75pt 5.75pt 5.75pt 5.75pt;" width="208">
<p style="text-align: center;"><strong><span style="color: windowtext;">Net Present Value of Property Tax Exemptions</span></strong></p>
</td>
<td style="width: 155.85pt; border: solid black 1.0pt; border-left: none; padding: 5.75pt 5.75pt 5.75pt 5.75pt;" width="208">
<p style="text-align: center;"><strong><span style="color: windowtext;">Total</span></strong></p>
</td>
</tr>
</thead>
<tbody>
<tr style="page-break-inside: avoid; height: 18.5pt;">
<td style="width: 155.8pt; border: solid black 1.0pt; border-top: none; padding: 5.75pt 5.75pt 5.75pt 5.75pt; height: 18.5pt;" width="208">
<p style="text-align: center;">$187,781,276 </p>
</td>
<td style="width: 155.85pt; border-top: none; border-left: none; border-bottom: solid black 1.0pt; border-right: solid black 1.0pt; padding: 5.75pt 5.75pt 5.75pt 5.75pt; height: 18.5pt;" width="208">
<p style="text-align: center;">$437,551,665</p>
</td>
<td style="width: 155.85pt; border-top: none; border-left: none; border-bottom: solid black 1.0pt; border-right: solid black 1.0pt; padding: 5.75pt 5.75pt 5.75pt 5.75pt; height: 18.5pt;" width="208">
<p style="text-align: center;">$625,332,941</p>
</td>
</tr>
</tbody>
</table>
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<p><strong>Land Value Contribution – Forgone Revenue</strong></p>
<p>The estimated land value contribution for City-led projects included in the Build Canada Homes submission is approximately $245 million. If these sites were delivered as market rate housing, the City would generate land lease revenue over the term of the lease. By providing long-term land interests to operators at nominal cost, the City forgoes potential ground rent, other market-based revenues, and some future land use flexibility to secure long-term affordability on City-owned land and advance the City’s affordable housing objectives.</p>
<p> </p>
<p><strong>Operating Expense Impact</strong></p>
<p>The City also invests in deepening affordability for low-income households by providing ongoing rent-geared-to-income (RGI) subsidies to new RGI homes, subject to City Council approval. Any incremental operating impacts of investment arising from this implementation will be identified and included in future operating budget submissions for the Housing Secretariat for consideration as part of future budget processes.</p>
<p> </p>
<p><strong>Capital Funding Impact</strong></p>
<p>If capital funding from Build Canada Homes is secured, the funding would be added to the 2026–2035 Capital Budget and Plan for the Housing Secretariat and the Housing Development Office, subject to disclosure of financial implications and acceptance of the terms.</p>
<p> </p>
<p><strong>Capital Funding Contribution for Prioritized Toronto Builds Projects (Recommendation 4)</strong></p>
<p> </p>
<p>The Toronto Builds sites identified in Table 1 of Confidential Attachment 1 represent the highest priority projects within the Build Canada Homes submission and are ready for immediate delivery.</p>
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<p>There is sufficient funding for the prioritized Toronto Builds projects of $217.5 million in the 2026-2035 Capital Budget and Plan of the Housing Secretariat and the Housing Development Office under the City-led Rental Development portfolio as outlined in Table 1 of Confidential Attachment 1.</p>
<p> </p>
<p><strong>Future Capital Maintenance & SOGR Risk</strong></p>
<p>As new City-led housing projects are completed, to the extent that State of Good Repair (SOGR), capital maintenance, and end-of-life obligations are the City’s responsibility, such projects add long-term obligations to the City’s housing portfolio, creating pressure on future capital and operating budgets.</p>
<p> </p>
<p>For buildings operated by non-TCHC operators, major capital repairs and eventual end-of-life renewal or demolition rely on the operator’s reserve funds and asset management plans. If these reserves are insufficient, the City may face future capital pressure. For buildings operated by Toronto Community Housing (TCHC), additional projects will increase demand on TCHC’s SOGR program and capital allocations.</p>
<p> </p>
<p>To mitigate these risks, the Housing Development Office and Housing Secretariat incorporate lifecycle costing, capital reserve planning, and monitoring of operator capacity into project delivery. Operator agreements require completion of regular Building Condition Assessments, reporting Facility Condition Index scores, and, where applicable, maintaining capital reserve funds. These measures will support the long-term viability of the portfolio and help limit unplanned impacts on future City budgets.</p>
<p> </p>
<p><strong>Prioritized City-Supported Community Housing Provider Projects (Recommendation 5)</strong></p>
<p> </p>
<p>Through the HDO 2026 Construction Readiness Assessment, City-supported affordable rental housing projects were prioritized for funding based on their readiness to begin construction. Projects were evaluated using criteria aligned with the HousingTO Plan, including program compliance, construction readiness, and the ability to leverage other government funding.</p>
<p> </p>
<p>The Community Housing Provider-led projects identified as prioritized City-supported Category 2 projects in Table 2 of Confidential Attachment 1 have previously been approved by City Council for funding or financial incentives under existing affordable housing programs (including the Open Door Affordable Housing Program and the Rental Housing Supply Program) and now require additional funding to proceed within the next 12 months to deliver approximately 189 affordable rental homes.</p>
<p> </p>
<p>The City-supported Rental and Homeownership Development portfolio has sufficient funding to support the delivery of prioritized Community Housing Provider-led projects of $34.6 million within the 2026–2035 Capital Budget and Plan of the Housing Secretariat and the Housing Development Office, as shown in Table 2 of Confidential Attachment 1, with no incremental financial impact.</p>
<p> </p>
<p><strong>Potential capital-related impacts</strong></p>
<p>City-supported affordable housing projects are on third party lands and the City is not responsible for long-term SOGR obligations, end-of-life capital renewal or redevelopment needs.</p>
<p> </p>
<p><strong>Operating Expense Impact</strong></p>
<p>The City also invests in deepening affordability for low-income households by providing ongoing rent-geared-to-income (RGI) subsidies to new RGI homes, subject to City Council approval. Any incremental operating impacts of investment arising from this implementation will be identified and included in future operating budget submissions for the Housing Secretariat for consideration as part of future budget processes.</p>
<p> </p>
<p><strong>Advancing TCHC-delivered Toronto Builds Projects (Recommendations 8-11)</strong></p>
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<p><strong>Operating Revenue Impact - Forgone Revenues</strong></p>
<p>TCHC is recommended to build and operate the Toronto Builds sites at 405 Sherbourne St. and 150 Queens Wharf Rd. Because the projects will include a mix of unit types, including rent controlled to affordable homes, TCHC can generate additional revenue to help offset costs and diversify its revenue streams. This represents a positive financial and operational impact that supports the long-term sustainability of the portfolio.</p>
<p> </p>
<p>As a result, the City would forgo revenues associated with building permits, parkland dedication, community benefits charges, and development charges for these projects, as previously reported in 2020.CC21.3 and 2026.PH28.1. The forgone revenue for these fees and charges for the two sites is now estimated at $34.8 million, reflecting current rates and changes in eligible units.</p>
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<p>Forgone licence fee revenue associated with the temporary construction use of City-owned parkland at 170 Queens Wharf Road is nominal and is waived to support the delivery of affordable housing at 150 Queens Wharf Road.</p>
<p> </p>
<p>This report recommends nominal value leases and related real estate agreements of up to 99 years with TCHC for Toronto Builds projects, including 150 Queens Wharf Road and 405 Sherbourne Street. If these sites were delivered as market rate housing, the City would generate land lease revenue over the term of the lease. By providing long-term land interests to TCHC at nominal cost, the City forgoes potential ground rent and related market-based revenues, and some future land use flexibility in exchange for securing long-term affordability on City-owned land and advancing the City’s affordable housing objectives.</p>
<p> </p>
<p><strong>Potential capital-related impacts</strong></p>
<p>As they assume the role of operator for the Toronto Builds projects, TCHC will be responsible for the capital repairs and long-term SOGR needs associated with these new buildings through its annual budget process and multiyear capital planning. As the City provides capital funding to support TCHC’s SOGR program, an expansion of TCHC’s portfolio may create additional long-term pressure on the City’s capital plan as these buildings age. Any resulting impacts will be monitored and brought forward through future budget processes for Council’s consideration.</p>
<p> </p>
<p><strong>Operating Expense Impact</strong></p>
<p>Based on the units planned and rental rates estimates for 405 Sherbourne St. and 150 Queens Wharf Road, it is expected that market units will cover the costs of affordable units, resulting in no net operating expense impacts.</p>
<p> </p>
<p><strong>Capital impact – 170 Queens Wharf Road park delivery</strong></p>
<p>This report requests authorization for Parks and Recreation, in consultation with Corporate Real Estate Management and the HDO, to execute a project delivery agreement with TCHC and its vendor to design, construct and deliver a park at 170 Queens Wharf Road on behalf of the City. Funding of $15.906 million to be provided by Parks and Recreation to TCHC for this work is included in the 2026-2035 Capital Budget and Plan for Parks and Recreation.</p>
<p> </p>
<p><strong>Operating impact – 170 Queens Wharf Road park delivery</strong></p>
<p>Future operating costs of the new park are estimated at $0.05 million annually and will be further refined upon completion of the park for inclusion in Parks and Recreation’s future budget submissions.</p>
<p> </p>
<p><strong>Property Tax Exemptions for Additional Affordable Rental and Rent-Controlled Homes (Recommendations 13-15)</strong></p>
<p> </p>
<p>This report recommends an exemption from taxation for municipal and school purposes for additional affordable rental homes and eligible rent-controlled homes in 13 projects as outlined in Attachment 2 - Summary of Recommended Property Tax Exemptions to Support Additional Affordable Rental and Rent-Controlled Homes. For several projects in Attachment 2, City Council has previously approved property tax exemptions for the affordable rental homes through items 2023.PH3.6, 2021.PH28.2 and 2020.CC21.3; this report now recommends extending property tax exemptions to the rent-controlled homes within those projects that are eligible under the Rental Housing Supply Program Affordable Rental and Rent-Controlled Housing Incentives stream, as well as providing the exemptions to affordable rental replacement homes part of TCHC revitalization sites.</p>
<p> </p>
<p>Municipal property tax exemptions are recommended for the affordability period, ranging from 40 years to 99 years. The estimated Net Present Value (NPV) of the property tax exemptions for approximately 1,629 additional affordable rental and rent-controlled homes across 13 projects is $225.8 million. These exemptions are not direct cash payments from the City but represent foregone property tax revenue over the term of the affordability period. Ongoing eligibility for the property tax exemption will remain conditional on each proponent's continued compliance with the terms and conditions of the City's Contribution Agreement over the term of the agreement.</p>
<p> </p>
<p><strong>Delegated Authority – Toronto New Deal Initiative (Recommendation 20)</strong></p>
<p>To facilitate progress on future Toronto New Deal modular home ownership developments, this report recommends Council provide the Executive Director, Housing Secretariat, delegated authorities to negotiate and enter into agreements with Minister of Municipal Affairs and Housing and development partners to secure provincial funding and move the developments through due diligence, design and approvals.</p>
<p> </p>
<p>There are no financial impacts arising from this recommendation. The authority to negotiate and enter into Memoranda of Understanding, Transfer Payment Agreements, and Program Delivery Agreements is conditional on such agreements not creating any financial commitments for the City or involving the use of City-owned land. Any provincial funding received through these agreements would flow through the City without requiring municipal contributions. Should future City funding, land commitments, or financial obligations be required to advance modular attainable homeownership sites under the Toronto New Deal Initiative, they will be brought forward in a subsequent report for Council consideration.</p>
<p> </p>
<p><strong>Updates on Specific Projects</strong></p>
<p><strong>C1 Bayside</strong></p>
<p>There are no direct financial impacts associated with this site’s update. The decision not to pursue a further extension of the existing agreement with Hines for Block C1 does not create any financial obligations or affect current City revenues. Any future financial impacts related to potential redevelopment of Block C1 - including opportunity costs, land ‑use decisions, or the need for municipal funding or incentives - will depend on the development option brought forward and will be reported to Council as part of a subsequent approval process.</p>
<p> </p>
<p><strong>2444 Eglinton Avenue East</strong></p>
<p>There are no new financial impacts arising from this site’s update. The Agreement of Purchase and Sale for the Market Lands at 2444 Eglinton Avenue East is consistent with the business terms previously approved by Council under Item MM35.39. The proponent’s obligation to fund construction of the 612 co‑operative homes on the leased portion of the site does not require any City capital or operating contribution. Any future financial impacts associated with the development or operation of the site will be brought forward through subsequent reports for Council consideration.</p>
<p> </p>
<p><strong>72 Amroth Avenue</strong></p>
<p>Financial impacts associated with this project are outlined in Confidential Attachment 2.</p>
<p> </p>
<p>The Chief Financial Officer and Treasurer has reviewed this report and agrees with the information as presented in the Financial Impact Section.</p> | <p>In direct response to Toronto’s escalating housing affordability crisis, the City continues to improve on and strengthen its structure, policy framework and overall approach to support and accelerate the delivery of housing development on City-owned lands (City-led projects, including the Toronto Builds and legacy Housing Now portfolio) and on third party lands (City-supported projects, including the Rental Housing Supply Program and legacy Open Door Affordable Housing Program portfolio).</p>
<p> </p>
<p>In 2025, as part of these ongoing efforts, City Council adopted <a href="https://secure.toronto.ca/council/agenda-item.do?item=2025.PH21.4">PH21.4</a> – “Toronto Builds - A Policy Framework to Build More Affordable Rental Homes on Public Land” and <a href="https://secure.toronto.ca/council/agenda-item.do?item=2025.EX25.1">EX25.1</a> – “Building Faster: Streamlining Housing Delivery and Strengthening the City’s Development Capacity.” These reports established a new policy framework for housing development on City lands, and outlined the new housing delivery model for the City and its partners. The City also established the Housing Development Office (HDO) within the Development and Growth Service Area to provide end-to-end oversight of the City’s housing portfolio, including all City-led and City-supported projects. </p>
<p> </p>
<p>The HDO is focused on ensuring that the City’s resources are efficiently deployed to deliver housing across the full continuum of need. City-led projects are addressed in partnership with Corporate Real Estate Management (CREM) via the Project Management Office (PMO), assigned to CreateTO or TCHC, through respective Master Services Agreements (MSA), or led by non-profit, Indigenous, or private housing development partners selected through procurement processes. Together, these delivery partners are responsible for 83 delivery sites in the City-led portfolio. In 2025, City-led projects reached the following milestones:</p>
<p> </p>
<p>- construction starts on 3,606 homes, including 1,492 rent-controlled homes and 1,497 net new affordable and rent-geared-to-income (RGI) homes;</p>
<p>- construction completions on 1,259 homes, including 376 net new affordable and RGI homes and 309 RGI replacement homes; and</p>
<p>- an additional 908 net new homes under construction, including 507 rent-controlled homes, 401 net new affordable and RGI homes, and an additional 165 rental replacement homes.</p>
<p> </p>
<p>The HDO administers City funding and incentive programs for affordable housing projects, enabling the City-supported housing portfolio to reach the following milestones in 2025:</p>
<p> </p>
<p>- construction starts on 4,115 homes, including 196 rent-controlled homes and 1,008 net new affordable and rent-geared-to-income (RGI) homes;</p>
<p>- construction completions on 1,993 homes, including 409 net new affordable and RGI homes; and</p>
<p>- an additional 8,187 net new homes under construction, including 187 rent-controlled homes, 2,342 net new affordable and RGI homes, and an additional 32 rental replacement homes.</p>
<p> </p>
<p>To further the delivery of the housing portfolio, this report provides Council with an update on directed activities of previous reports and seeks Council direction to advance a number of initiatives to support new homes for Toronto, including:</p>
<p> </p>
<p>- the establishment of the HDO;</p>
<p>- the three-year work plan for City-led housing development projects;</p>
<p>- selected housing development projects;</p>
<p>- intergovernmental funding requests critical to the successful delivery of rent-controlled, affordable and RGI homes;</p>
<p>- capital funding to the housing projects described in Confidential Attachment 1;</p>
<p>- next steps on 72 Amroth Ave. described in Confidential Attachment 2;</p>
<p>- the non-profit homeownership project described in Confidential Attachment 3; and</p>
<p>- existing and new delegations of authorities for senior City officials to advance housing development projects efficiently and at the appropriate level of accountability.</p> | 30 | 6 | CMMTTEE | PH | All | N | 1779249600000 | … | Report | ACTION | Amended | Main | — | — | Committee | … | … | … | … | … | … | … | … | … | … | … | … | … | … | … | Decision information not found | false | Amended | — | — | NEGOT | A position, plan, procedure, criteria or instruction to be applied to any negotiations carried on or to be carried on by or on behalf of the City; and contain financial information, supplied in confidence to the City of Toronto, which, if disclosed, could reasonably be expected to prejudice significantly the competitive position or interfere significantly with the contractual or other negotiations of a person, group of persons, or organization. | Measures to be applied to negotiations by or on behalf of the municipality or local board |