August 10, 1998

STRIKING COMMITTEE:

City Council on July 29, 30 and 31, 1998, in adopting, as amended, Clause No.4 contained in Report No.7 of The Community and Neighbourhood Services Committee, headed "Sale of Scattered Units Owned by Ontario Housing Corporation in the City of Toronto", directed, inter alia, that the Provincial Minister of Municipal Affairs and Housing be advised that the City of Toronto will be nominating its two representatives to the Board of Directors of the Metropolitan Toronto Housing Authority; and further that the matter of these nominations be referred to the Striking Committee for consideration.

for City Clerk

J. A. Abrams/csb

Encl.

Clause sent to:Minister responsible for Canada Mortgage and Housing Corporation

Minister of Municipal Affairs and Housing, Province of Ontario

Commissioner of Community and Neighbourhood Services

Striking Committee

Chair, Ontario Housing Corporation

Chair and Chief Executive Officer, Metropolitan Toronto Housing Authority

Mr. Cliff Martin, The Public Housing Fight Back Campaign

Mr. John Ford, Ontario Public Service Employees Union, Local 592

Mr. Wally Devoe, Canadian Union of Public Employees, Local 767

All Interested Parties

CITY CLERK

Clause embodied in Report No. 7 of The Community and Neighbourhood Services Committee, as adopted by the Council of the City of Toronto at its meeting held on July 29, 30 and 31, 1998.

4

Sale of Scattered Units Owned by Ontario

Housing Corporation in the City of Toronto

(City Council on July 29, 30and 31, 1998, amended this Clause by adding thereto the following:

"It is further recommended that City Council indicate to the Provincial Government its willingness to discuss and possibly support a proposal to construct replacement units equal to or larger than those being sold.")

The Community and Neighbourhood Services Committee recommends to Council:

(a)the adoption of the report of the Commissioner of Community and Neighbourhood Services;

(b)that the report of the Commissioner of Community and Neighbourhood Services be forwarded to the Federal Government and Federal Minister responsible for housing; and further that the Minister be advised of the proposed sale of the Provincial housing stock prior to ownership of such housing stock being transferred to the City of Toronto; and

(c)that the Provincial Minister of Municipal Affairs and Housing be advised that the City of Toronto will be nominating its two representatives to the Board of Directors of the Metropolitan Toronto Housing Authority; and further that the matter of these nominations be referred to the Striking Committee for consideration.

The Community and Neighbourhood Services Committee reports having:

(i)directed that The Public Housing Fightback Campaign, the Canadian Union of Public Employees, Local 767, the Ontario Public Services Employees Union, Local 592, and any other interested party, be given the opportunity to present their concerns on the Metropolitan Toronto Housing Authority at the next meeting of the Community and Neighbourhood Services Committee on September 10, 1998; and that this matter be considered as the first item of business on the agenda for such meeting;

(ii)referred to the Commissioner of Community and Neighbourhood Services and the Chief Executive Officer of the Metropolitan Toronto Housing Authority the communications and brief from The Public Housing Fightback Campaign, the Canadian Union of Public Employees Local 767 and the Regent Park Community Health Centre for review and comment thereon to the September 10, 1998, meeting of the Community and Neighbourhood Services Committee; and

(iii)directed that the Commissioner of Community and Neighbourhood Services be requested to report to the Community and Neighbourhood Services Committee on the feasibility of selling MTHA housing stock once the ownership and management responsibility has been fully downloaded to the City of Toronto.

The Community and Neighbourhood Services Committee submits the following report (June30, 1998) from the Commissioner of Community and Neighbourhood Services:

Recommendations:

It is recommended that:

(1)Council oppose the sale of the scattered houses owned by the Ontario Housing Corporation in the City of Toronto;

(2)Council's position be forwarded to the Minister of Municipal Affairs and Housing and to the Chairs of the Boards of the Ontario Housing Corporation and the Metropolitan Toronto Housing Authority; and

(3)the appropriate City officials take the necessary steps to give effect thereto.

Purpose of the Report:

The Community and Neighbourhood Services Committee at its meeting of June 18, 1998, asked the Commissioner of Community and Neighbourhood Services to submit a report outlining the Department's position on the sale of Metropolitan Toronto Housing Authority (MTHA) scattered units. This report has been prepared in response to that request.

Background:

In June of 1996, the Ontario Housing Corporation (OHC) launched a program to sell some of the scattered units which it owns. This was done as a cost saving measure and was part of the 1996Business Plan of the Ministry of Municipal Affairs and Housing. A small number of units were sold through 1996 until a moratorium was placed on the program at the end of 1996, pending direction from the Provincial Government on plans for public housing.

In the fall of 1997, OHC began to consider the issue again and, at its meeting of January 23, 1998, the Board decided to proceed with its original plan to sell scattered units. Local Housing Authorities across the Province, of which MTHA is one, were directed to submit information to the OHC Board regarding any scattered unit that becomes vacant so that the Board can decide whether to sell it or not. The units must fall within the following parameters:

-single-detached, semi-detached or rowhouse unit;

-located on an individually severed lot;

-fewer than five bedrooms; and

-not modified to accommodate tenants with disabilities;

MTHA has identified 438 units which fall within these criteria, out of a total of approximately 500scattered units which it manages. These units include 351 three-bedroom houses and 87four-bedroom houses scattered throughout the City.

It is important to note that all of these houses have subsidy dollars attached to them and are offered to low income families who pay a rent geared to income. This distinguishes these houses from the "property houses"owned by the City, where there are no subsidies attached and tenants pay a market rent.

The Need for Subsidized Units:

As noted, the scattered units to be considered for sale are three and four-bedroom houses. According to waiting list data maintained by Toronto Social Housing Connections (formerly known as the Housing Registry), as of March 31, 1998, there were 9,040 households on waiting lists for three-bedroom units and 2,068 households on waiting lists for four-bedroom units. The majority of these households are waiting for units operated by MTHA. In all of 1997, MTHA only turned over (i.e., rented to new applicants) 553 three-bedroom units and 66 four-bedroom units.

Any sale of units in this category will serve to make a long wait even longer for low income families seeking geared to income housing.

Proceeds of Sales:

OHC will not receive any additional funds from the proceeds of unit sales. Any money generated is returned to the Province's Consolidated Revenue Fund. In a September report to the Board, OHC indicated that it is not known if the sale of some units will affect the level of continuing subsidy from the Federal Government. In addition, there is no plan to transfer any subsidies from units that have been sold to other units in the social housing system. This approach is not consistent with the Provincial Government's stated commitment to maintain service levels through the reform of social housing prior to municipal devolution.

Conclusions:

The need and demand for affordable housing far exceeds the available supply. There is no longer any support from the senior levels of government to build new social housing and cities will increasingly be left to find housing solutions on their own. In the City of Toronto, the problem is a particularly serious one as vacancy rates for rental housing are low and there is almost no construction of private rental accommodation. Any attempt to sell units which are already publicly owned and which have subsidies attached to them seems counterproductive at this time. It is therefore recommended that the City of Toronto formally oppose the sale of the scattered OHC units within the City. The Chair of the OHC Board of Directors and the CEO of MTHA have been notified of the City's interest in this issue and have been invited to attend the July 16 meeting of the Committee.

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The Community and Neighbourhood Services Committee reports, for the information of Council having also had before it communications from the following:

-(July 15, 1998) from Mr. William McMillin Carson, Ontario Housing Corporation, outlining a recommendation from the OHC's Policy and Program Committee to be considered by the OHC Board on July 16 and 17, 1998, with respect to the issue of scattered units for consideration for sale by the Board; and further outlining instructions to staff should such recommendation be adopted;

-(July 15, 1998) from the City Clerk advising that City Council on July 8, 9 and 10, 1998, in adopting, as amended, Clause No. 5 of Report No. 6 of The Community and Neighbourhood Services Committee, headed "Capital Funding of Metropolitan Toronto Housing Authority Projects", directed that the matter of representation on the Board of Directors of the Metropolitan Toronto Housing Authority be referred to the Community and Neighbourhood Services Committee for consideration;

-(July 16, 1998) from the Canadian Union of Public Employees, Local 767, regarding MTHA's proposal to expand their private management partnerships;

-(June 1998) from The Public Housing Fightback Campaign, headed "The Future Management of Public Housing - The Case Against Further Privatization of Public Housing in MTHA)"; and

-(June 29, 1998) from Councillor Howard Moscoe, North York Spadina, submitting a Notice of Motion with respect to representation on boards of local housing authorities; noting that, in the case of MTHA, the Minister of Housing appointed two representatives without consultation with the municipality; and recommending that Council advise the Minister that Toronto will be nominating its two representatives; and that this matter be referred to the Striking Committee.

The following persons appeared before the Community and Neighbourhood Services Committee in connection with the foregoing matter:

-Mr. Wally Devoe and Mr. Lyttleton Joseph, Canadian Union of Public Employees, Local 767;

-Mr. Cliff Martin and Mr. Vance Latchford on behalf of The Public Housing Fightback Campaign;

-Mr. Henderson Phillips;

-Ms. Nicole Seguin, Community Health Worker, Regent Park Community Health Centre, and submitted a brief in regard thereto;

-Ms. Suzanne Kelly, President, Ontario Public Service Employees Union, Local 592; and

-Councillor Howard Moscoe, North York Spadina.