TABLE OF CONTENTS

REPORTS OF THE STANDING COMMITTEES

AND OTHER COMMITTEES

As Considered by

The Council of the City of Toronto

on May 13 and 14, 1998

COMMUNITY AND NEIGHBOURHOOD SERVICES COMMITTEE

REPORT No. 4

1Ontario Works Act Regulations

2Cheque Encashment Service Changesfor Social Assistance Recipients

3Emergency Shelter for Youth

4Preventing Homelessness by Reducing Evictions

5Proposed Redevelopment - North-East Quadrant,North Regent Park, Don River Ward

6Other Items Considered by the Committee

City of Toronto

REPORT No. 4

OF THE COMMUNITY AND NEIGHBOURHOOD SERVICES COMMITTEE

(from its meeting on April 23, 1998,

submitted by Councillor Gordon Chong, Chair)

As Considered by

The Council of the City of Toronto

on May 13 and 14, 1998

1

Ontario Works Act Regulations

(City Council on May 13 and 14, 1998, adopted this Clause, without amendment.)

The Community and Neighbourhood Services Committee recommends the adoption of the report dated April 21, 1998, from the Commissioner of Community and Neighbourhood Services.

The Community and Neighbourhood Services Committee reports, for the information of Council, having requested:

(a)the Chair of the Community and Neighbourhood Services Committee to report to the May21,1998, meeting of the Committee on the outcome of his meeting with the Minister of Community and Social Services; and

(b)the Commissioner of Community and Neighbourhood Services to:

(i)report to the May 21, 1998, meeting of the Committee providing a more detailed analysis of the impacts of the Ontario Works Act regulations, in order that strategies can be developed to respond to such regulations; and

(ii)invite interested parties to submit their comments on the regulations.

The Community and Neighbourhood Services Committee submits the following report (April21, 1998) from the Commissioner of Community and Neighbourhood Services:

Purpose:

The purpose of this report is to provide an overview of the new Ontario Works Act regulations, which have recently been released by the Province. Due to the limited time available to examine the regulations, this report highlights the key changes contained in the new regulations, and provides an initial overview and impression of the cumulative impacts for Toronto.

Financial Implications:

The net financial impact of the new regulations will require substantial analysis and is therefore not known at this time.

Recommendations:

It is recommended that:

(1)the Chair of the Community and Neighbourhood Services Committee arrange a meeting with the Minister of Community and Social Services to discuss the implications of the new regulations for the City of Toronto;

(2)the Province be urged to reconsider those regulatory changes that undermine and contradict the employment goals central to the Ontario Works program, and that constrains the Municipality's capacity to effectively and efficiently manage the delivery system such that it is both fiscally responsible, and sufficiently flexible to meet the needs of Toronto residents;

(3)this report be forwarded to the Minister of Community and Social Services; and

(4)the appropriate City officials be authorized and directed to take the necessary action to give effect thereto.

Background:

By the late 1980s, it was widely acknowledged that the social assistance system was in need of significant reform. Based on legislation which had been passed in the late 1950s, the system could no longer adapt to rapidly occurring changes in the social and economic environment. Ongoing reductions in other programs, like Employment Insurance (E.I.), and difficult labour market conditions, placed increasing pressure on social assistance, to the point where it is now the principal labour market adjustment program in Toronto, and an ever more critical support for people who lose jobs, or who are seeking assistance to re-enter the labour market. As one example of the changes occurring, it is worth noting that fewer than 40 percent of the unemployed people in the Greater Toronto Area (G.T.A.) are now in receipt of E.I. versus more than 70 percent a decade ago.

The current government initially outlined its commitment to reform the social assistance system in "The Common Sense Revolution" document. Beginning in 1995, a number of significant changes were made to the social assistance system, including:

(a)reductions in social assistance rates;

(b)introduction of more restrictive policies governing eligibility;

(c)in October 1996, the introduction of the Ontario Works program;

(d)tabling of new social assistance legislation, the Social Assistance Reform Act (S.A.R.A.), in June 1997;

(e)announcement of significant new municipal responsibilities for cost-sharing and delivering social assistance as part of the Province's "Who Does What" process;

(f)introduction of a series of important regulation changes affecting benefit levels and eligibility for implementation on April 1, 1998; and

(g)most recently, release of the new regulations for the Ontario Works program effective May1,1998.

A critical component of the Province's reform is the creation of a new legislative framework for social assistance. Passed in November 1997, the new S.A.R.A. does two things:

(a)it gives effect to the new municipal social assistance funding and program delivery responsibilities recommended by the Provincial Who Does What panel; and

(b)it creates a wholly new social assistance delivery system through two new pieces of program legislation: the Ontario Works Act (O.W.A.) and the Ontario Disability Support Program Act (O.D.S.P.A.). These statutes replace three existing Acts: General Welfare Assistance (G.W.A.), Family Benefit Assistance (F.B.A.), and the Vocational Rehabilitation Services (V.R.S.) Act.

In July 1997, the Department reported to Metropolitan Council on the details of the new legislation (Clause No. 2 of Report No. 10 of The Human Services Committee), and assessed impacts of the new legislative framework introduced by the Province.

The Social Services Division has had the regulations for less than a week. Due to the limited time available to examine the regulations, this report highlights the key changes, and provides an initial overview and impression of the cumulative impacts for Toronto. The changes are listed in AppendixI. The Department will continue to analyze the impacts in greater detail and report back to Committee over the next several months.

The Province has indicated that provision is being made for a transition period, extending to the end of 1998, to enable delivery agents to fully implement the new regulations.

Discussion:

(I)Toronto's Social Services Delivery System:

The Department has recognized for some time that social assistance should be an employment focused program which enables staff to actively help people become independent by obtaining jobs. Its own efforts to reform the social assistance delivery system have been predicated on two basic principles:

(a)people on assistance want to work; and

(b)the social services delivery system must balance the need to ensure financial integrity with the need to provide service supports which effectively meet the needs of Toronto residents.

Overall, Toronto has demonstrated that a social services delivery system can be compassionate, while at the same time, efficient, effective and fiscally responsible.

Toronto Social Services has a track record of responding to residents' service needs and to initiating new and effective strategies for improving program management and reducing program delivery costs.

Since the early 1980s, Toronto has provided a range of employment programs and supports to clients. By working with an array of community organizations and other levels of government, it developed a basic employment services infrastructure. This provided the foundation for the implementation of the Province's Ontario Works program, and enabled the municipality to introduce Ontario Works in a way which best meets local needs and respects community values.

Through a fundamental redesign of the delivery system, begun in the late 1980s, the Social Services Division has dramatically streamlined administrative processes, introduced program efficiencies, increased cost-effectiveness, and reduced the time spent by staff on non-value added activities. The result is evident in cost of administration comparisons with the other delivery agents around Toronto, which demonstrate that the City is just as cost-effective as these jurisdictions, although it faces issues unique to large urban centres, and delivers services to 90 percent of all social assistance clients in the G.T.A.

Steps to increase financial integrity have been central to the Division's efforts to improve the delivery system. Through a range of initiatives, with technology as a central focus, most recently the Client Identification and Benefits Systems, the Division has continued to strengthen program integrity.

In the end, however, the hallmark of an effective social services delivery system for any community is its capacity to positively respond to local needs within the prevailing legislative and regulatory framework. Toronto has consistently advocated for the changes to social assistance which ensure that the program:

(a)treats people fairly and equitably;

(b)provides adequate financial and employment supports in relation to the costs of living in the local community; and

(c)makes sufficient discretion available to municipalities to respond flexibly to needs in different communities.

As indicated in its July 1997 report, the Department is supportive of certain core elements of the Province's approach to legislative reform. The Department has long supported the creation of a single tier social assistance system, and the development of a separate program for people with disabilities. Similarly, the Department strongly agrees with the dual priority the new legislation establishes for the social assistance system: to promote independence through employment, and to provide financial assistance.

At the same time, there are key features of the legislation, and more specifically, the new O.W.A. regulations, which are regressive and which are counterproductive to achieving the Province's own stated purpose of creating an employment focused program which has, as its priority, the goal of moving people into jobs. Appendix IV states the Province's specific purpose for the Ontario Works Act.

Of particular concern is the introduction of law enforcement powers in the social assistance system. These powers appropriately belong to law enforcement agencies, and directly contradict the support role that must be central to an employment focused social assistance program. This concern will be elaborated later in the report.

(II) New Regulations: Overview:

The O.W.A. regulations provide the detailed and technical basis for specifying the application of the provisions contained in the new statutes. In effect, regulations provide the rules for delivering social assistance on a day to day basis. The new regulations published by the Province set out the following: basic definitions under the O.W.A.; who is eligible for assistance; how applications will be taken; obligations to seek employment and to participate in employment assistance activities; issues related to non-compliance; and the processes for calculating benefit entitlement. Appendix I lists the contents of the new regulatory package.

Overall, the Department is concerned that the social assistance system which will emerge under the new regulations will be administratively cumbersome, unnecessarily restrictive, and will undo the positive efforts this municipality has made to redirect staff time and resources from administering financial eligibility to supporting clients' efforts to re-enter the labour market.

(III)Key Issues:

This section will examine specific changes to eligibility, benefits and program delivery. Potential impacts will be assessed using key examples.

(A)Changes to Eligibility:

There are a number of changes which affect who is eligible for financial assistance. Overall, the regulations adopt a more restrictive approach to program eligibility. The key ones are as follows.

Treatment of Assets: Value of Automobiles:

Under the new regulations, automobiles worth more than $5,000.00 are considered an available asset. Applicants and recipients who own such a vehicle will not be eligible for assistance unless they dispose of the asset.

Given that more than one third of Toronto's clients receive assistance for less than four months, this is a unduly restrictive change which will cause many clients to lose their primary source of transportation, and one of the most important tools they have to regain employment. The effect may well be to reduce people's ability to look for work, and rapidly move off assistance.

Conversely, someone may be in need, and meet all other eligibility criteria, but be denied financial assistance solely on the basis of the value of their vehicle. In such cases, the applicant person may have no recourse but to sell their automobile even though they may need benefits for only a short time.

Earnings Exemptions:

The new regulations reduce the amount of employment income that people with earnings can retain as the length of time on assistance increases (see Appendix I for details). Currently, there are over 14,000 people with earnings in receipt of assistance who may be affected by this change.

This change will undermine the Support to Employment Program (S.T.E.P.), introduced over 10years ago. The program ensures that people with earnings are always better off working than they would be on social assistance alone. The program also serves as a transitional support to clients with low incomes who are seeking to become completely independent of social assistance.

The most substantial impact will be felt by larger families who have earnings, but who, because of their budgetary needs, remain eligible for social assistance. In these cases, the new exemptions will simply reduce the overall income available (see Appendix II for several case examples), and serve as a disincentive to maintaining part-time employment.

Persons 60-64 Years Old:

As the Department noted in its July 1997 report, under S.A.R.A., 60 to 64-year old persons applying for social assistance after January 1, 1998, will only be eligible for financial assistance under O.W.A. They also will be required, as a mandatory condition of eligibility, to participate in all approved employment activities, including Community Participation. There is a monthly average of over 500 people in this age group in receipt of O.W.

The Department's position remains that the inclusion of this group in O.W. is not consistent with the purpose of the Act, which is intended to assist employable individuals find the "shortest route to a job." If citizens nearing retirement must apply for financial assistance through O.W., at minimum, they should be exempted through regulation from mandatory O.W. activities, such as Community Participation.

Sole Support Parents:

As of May 1, 1998, in conjunction with the implementation of the new Ontario Works legislation, all single parents will be required to enroll in the Ontario Works program as part of the overall changes in the delivery system. Single parents with school-aged children will have mandatory participation requirements. All regulations that have traditionally applied exclusively to employable cases, will now also apply to this group. For example, single parents who quit or are fired from their jobs may not be eligible for assistance for a three or six-month period. As has been reported previously, this represents a fundamental change for the social service system.

(B)Changes to Benefits:

The new regulations do not alter the maximum benefit levels provided under basic assistance or shelter allowances. However, there are a number of changes which, taken collectively, will negatively impact many clients, either by reducing the funds they will receive as a result of the way benefits will be calculated, by reducing the funds available in certain situations, or by restricting eligibility for specific benefits. The following summarizes the key changes.

Pregnancy Allowances:

The most obvious change to benefits is the elimination of the pregnancy allowance, which provided $37.00 per month for up to six months to pregnant clients. In 1997, this allowance was provided to approximately 6,500 women. To date, in 1998, nearly 2,900 women have received the allowance. The Provincial position is that the funds may be provided through other means, but only where proof of need is demonstrated and it can be assured that the funds are appropriately used.

In consultation with Toronto Public Health, the Social Services Division will investigate options to replace the pregnancy allowance (e.g., by using the Special Diet allowance), and examine approaches to delivering the benefit which will meet the nutritional needs of pregnant women.

Back to School and Winter Clothing Allowance:

In both cases, these allowances, which are provided to families once a year, will now be available only to children living at home who are under 18 years of age. Previously, all dependents up to the age of 21 were eligible to receive both allowances.

Restricted Eligibility for Discretionary Benefits:

Under G.W.A. regulations, a person or family with a low income, on the basis of a needs test, could obtain a drug card under G.W.A. which provided 100 percent coverage for the cost of approved prescription drugs and drug products. In 1997, approximately 300 people per month received drug cards who were in this situation, including people on fixed incomes who are in receipt of Old Age Security or Canada Pension Plan benefits.

These clients will no longer be eligible for a drug card. As noted in the Department's February report, entitled "General Welfare Assistance Regulation Changes," this change will create very real hardships for certain low income and working poor households, especially where individuals or families urgently require drugs to maintain their health. In certain cases, individuals or families with high drug costs may be compelled to leave their jobs and apply for social assistance to ensure their medical needs can be met.

The new O.W.A. regulations introduce a mandatory program providing vision and basic dental care for children in receipt of benefits under O.W. and O.D.S.P., and for disabled adults in receipt of O.D.S.P. Programs serving adults in receipt of O.W. will only be provided on a discretionary basis by municipalities. The potential is that a two tier system will emerge, with adults on O.W. receiving no dental or vision care benefits, or lower quality benefits. Currently, low income people and recipients of other government programs (C.P.P., O.A.S./G.I.S.) can receive certain vision care and dental benefits under G.W.A.

Dependent Adults:

The regulations introduce a new definition of dependent adult, which will affect both eligibility and benefit levels for specific clients. Currently, any adult over the age of 21 is eligible for social assistance if they demonstrate financial need. However, under the new regulations, any adult who does not meet the new test for financial independence is considered a dependent adult, regardless of age, and is not eligible for social assistance in their own right.

As a result, dependent adults, whether they are 20 or 45 years of age, who live with their parents are not eligible for social assistance if their parents are not in receipt of O.W.A. or O.D.S.P. If the parents are in receipt of social assistance, the dependent adult is simply added to the family's benefit unit, resulting in a substantially reduced allowance which is paid directly to the parent.

For adults in this situation, the immediate effect of this change will be either ineligibility or a substantial reduction in benefits, ranging up to 80 per cent. of current entitlements. Appendix II provides specific examples of the way benefit levels will be altered. Along with reductions in benefits, there will also be a corresponding loss of independence for those affected.

As of April 1, 1998, the maximum entitlement for boarders living at home was also reduced. Currently, boarders who live with their parents, and all boarders, receive the same allowances. As a result of this change, people who move in with, or remain with, their parents to reduce their costs, will be penalized. In addition, clients who receive income from boarders will have a greater proportion of this income deducted. A number of other reductions in benefits related to shelter costs were described in the Division's February 4, 1998, report discussing changes to regulations effective April 1, 1998.

There is a larger issue related to benefit reductions that should be noted here. Given the cuts in social assistance rates that were made in 1995, and the ongoing problems with housing affordability in Toronto, for many people even moderate reductions in benefits may increase the risk that they will lose their housing, or make it that much more difficult for them to secure stable housing. Such consequences often ultimately result in the need for more costly interventions.

Funerals:

Currently, the municipality, under the Anatomy Act, is responsible for burial costs of the indigent poor. The Province has traditionally cost-shared these expenses on a 80/20 basis under Special Assistance. Under the new regulations, the Province will no longer cost-share burials for non-social assistance recipients. In 1997, gross divisional expenditures for funerals was approximately $2.7million. Appendix III provides information about the 1997 and 1998 funeral expenditures.

(C)Changes Affecting Program Delivery:

Eligibility Review Officers: Law Enforcement Powers:

Currently, the Division has a well established and effective process in place for protecting the integrity of the social assistance program. The Division has developed a close working relationship with the Toronto Police Service, and is convinced, based on experience, that the delineation of powers and responsibilities between police staff and social service workers is appropriate and productive in addressing any program abuse.

The new legislation expands the ability of delivery agents to establish fraud control measures, and permits the creation of specific units and positions, such as a fraud control unit and eligibility review officer with police-type powers, including search warrants. While the Department supports placing new authorities in the Act that will enable it to better protect program integrity, it is very concerned about the emphasis on an onerous client policing function for the social assistance system, and for staff.

The Department believes, as a principle, there is a fundamental contradiction between policing and client support functions. "Policing" functions should not be incorporated within the social assistance system. This is particularly the case when the current verification and monitoring activities are to be expanded so significantly.

Verification and Documentation Requirements:

The new regulations will substantially increase the need to document and verify information related to the determination of eligibility and entitlement. A number of regulatory changes announced by the Province in February this year are indicative of the thrust of the new O.W.A. regulations. For example, the fixed shelter amount for homeless individuals was eliminated, and replaced by repayment of actual shelter costs, where proof is provided.

In addition, only actual utility costs are now being paid. Previously, below a minimum dollar amount, a set allowance was paid for utilities, based on family size. Currently, about 10 percent of the caseload is reimbursed for actual utility costs. About one-third receives the set allowance.

The Department's analysis of these minor changes indicates that the caseload changes will add to the already extensive amounts of documentation front-line workers currently review, thereby lengthening the eligibility determination process and increasing staff workload. Direct financial savings from the proposed changes will be modest, at best, as the Provincial government has acknowledged.

These consequences will be magnified many fold with the introduction of the O.W.A. regulations. Several examples are cited below:

(a)determination of whether an adult is financially independent or dependent (more information is provided in the section below related to this issue);

(b)establishing and monitoring trusteeships for youth under 18;

(c)establishing liens against property as required by the new regulations; and

(d)the extensive workload associated with implementing new fraud control measures.

Increased administrative workload required to deliver income supports will make it more difficult for the Division to pursue increased efficiencies by streamlining and automating procedures, which has allowed it to redirect staff time to assisting people to obtain work. In fact, these initiatives are critical to the success of Ontario Works, which requires front-line staff to work intensively with clients to pursue employment activities.

Program Prescriptiveness:

The new regulations are indicative of the prescriptive approach being taken by the Province to the management of the social assistance delivery system. Potentially, the discretion available to local service managers in a number of human service areas to shape their delivery systems to respond to local community needs will be impacted.

The potential under the new regulations is that the Province will increasingly micro-manage the delivery system. Over time, the City has been able to fashion positive and appropriate responses to the needs of Toronto's residents using the discretion and flexibility available to it under the G.W.A. Act.

At a more basic level, reflecting the core values which have been expressed by communities in Toronto, the municipality has used its discretion and has consistently pursued the creation of a delivery system which balances effective program management and competent and cost-effective program delivery with a responsive and compassionate approach to providing income supports to eligible people in need. Maintaining this balance has been critical through the last recession, a period in which social assistance became the program of last resort to a much larger group of people who had no other means to subsist, as well as the primary employment support program for unemployed people in Toronto.

Conclusion:

This report provides a broad overview of the major changes to the social assistance system that will flow from the new O.W.A. regulations. While a detailed examination of impacts has not been possible, given the recent release of the regulations, the issues identified reflect the direction and tone of the Provincial changes.

The Department has a number of critical concerns about the cumulative impacts of the regulations on the social assistance delivery system:

(a)Changes made to the way eligibility is determined and benefits are calculated will, in many cases, negatively impact clients already in very vulnerable situations. Reductions to social assistance benefits may also place more people in unstable or risky situations, particularly in Toronto given the high cost of shelter. The Department is concerned that the energies of an ever larger group of clients will be directed to trying to maintain housing and meet basic needs, diminishing their capacity to actively seek work.

(b)Excessively restrictive eligibility criteria which deny benefits to people in need will increase pressures on true emergency services, such as hostels and other community-based services supported by the Municipality and local funders.

(c)The new regulations are highly prescriptive and centralize control of very detailed program decisions with the Province. There will be much less discretion and flexibility available to delivery agents at the very time that municipalities are required to contribute to a larger part of the costs of social assistance.

(d)As noted, new policing powers are included which are inherently incompatible with the employment support role central to Ontario Works, and which should therefore not be part of the social assistance program.

(e)The regulations will have substantial program management implications, and will significantly increase the staff time and resources required to deliver the O.W. program.

Underpinning these changes is the presumption that clients do not use benefits for the reasons they are provided, and cannot be trusted to decide how their needs can best be met. This seems paradoxical given one of the tenets of the Provincial reform is to support people becoming self reliant. The outcome of the approach taken in the regulations will be a delivery system which is much less capable of responding to client need, and which requires great efforts to document and verify large amounts of information, with corresponding increases in the time staff spend administering financial assistance, and a reduction in the time available to actively assist clients to become independent.

In view of the above, it is recommended that the Province be urged to reconsider those regulatory changes that undermine and contradict the employment goals central to the Ontario Works program, and that constrain the municipality's capacity to effectively and efficiently manage the delivery system such that it is both fiscally responsible and sufficiently flexible to meet the needs of Toronto residents.

Contact Name:

Heather MacVicar:

Tel: 392-8952

--------

Appendix I

Regulation Changes Overview

*new to social assistance regulations

Appendix III

Funeral Costs

Under the Ontario Works regulations, funerals are considered discretionary. However, under the "Antomy Act" it is the responsibility of the municipality to dispose of unclaimed bodies when instructed by the coroners office. The Municipality will be responsible for 100 percent of the costs for people not in receipt of social assistance resulting in an increase in program costs.

Description of Services:

Indigent:Services include professional services, vehicles, casket and burial.

Regular:Service include professional services, funderal home, chapel, vehicles, casket and burial.

--------

Appendix IV

Legislative Authority

The Ontario Works Act provides a legislative framework for the vision of social assistance in Ontario. This vision is one that respects people's dignity, enhances their self-esteem, and fosters independence, self-reliance, community contribution and participation. Ontario Works provides employment assistance and temporary financial support for people who are in financial need.

The legislation states the purpose of the Ontario Works Act is to:

-recognize individual responsibility and promote self-reliance through employment;

-provide temporary financial assistance to those most in need while they satisfy obligations to become and stay employed;

-effectively serve people needing assistance; and-be accountable to the taxpayers of Ontario.

Excerpt from Draft Provincial Ontario Works Policy Directives: Directive #1 Overview of Policy Directives

--------

The Community and Neighbourhood Services Committee reports, for the information of Council, also having had before it a communication (undated) from Mr. Peter Clutterbuck, Co-Executive Director, Community Social Planning Council of Toronto, outlining their concerns with the changes made to social assistance laws with the release of the regulations implementing aspects of the Ontario Works Act; and attaching a copy of a newsletter from the Ontario Social Safety Network in regard thereto; and requesting that the Committee reserve space on its May agenda for deputations from members of the community on these issues and concerns.

Councillor Jack Layton, Don River, appeared before the Community and Neighbourhood Services Committee in connection with the foregoing matter.

2

Cheque Encashment Service Changes

for Social Assistance Recipients

(City Council on May 13 and 14, 1998, adopted this Clause, without amendment.)

The Community and Neighbourhood Services Committee recommends:

(i)the adoption of the following report (April 21, 1998) from the Commissioner of Community and Neighbourhood Services, subject to amending Recommendation No.(1) by deleting the words "according to the conditions outlined in this report", and inserting in lieu thereof the words "to December 31, 1998, under the existing terms and conditions", so that such recommendation reads as follows:

"(1)the agreement with the Bank of Montreal for social assistance banking arrangements be extended to December 31, 1998, under the existing terms and conditions, until superseded by new City of Toronto Banking arrangements;" and

(ii)that a copy of the report from the Commissioner of Community and Neighbourhood Services be forwarded to the Corporate Services Committee for information:

Purpose:

This report outlines the interim cheque encashment arrangements between the Bank of Montreal and Social Services Division and recommends that equitable cheque encashment for social assistance recipients be included in the agreement with the City of Toronto's future banking service provider.

Funding Sources:

As a result of the interim arrangements, the administration costs for cheque encashment will increase by an average from $48,000.00 gross, $24,000.00 net, to $60,000.00 gross, $30,000.00 net, per month from May through December, 1998.

Recommendations:

It is recommended that:

(1)the agreement with the Bank of Montreal for social assistance banking arrangements be extended according to the conditions outlined in this report, until superseded by new City of Toronto banking arrangements;

(2)as part of the negotiations with the single banking provider, for the City of Toronto, Finance staff request that there be unrestricted and equitable cheque encashment for social assistance recipients in the City of Toronto banking contract; and

(3)the appropriate City officials be authorized and directed to take the necessary action to give effect thereto.

Background:

Beginning in 1995, terms and conditions were established with the Bank of Montreal for a three-year contract for the encashment of social assistance cheques through a variety of means, ensuring that social assistance recipients had access to mainstream banking services. The initial changes to the agreement occurred as a result of incremental increases to services charges from $2.00 per cheque to the current $5.00 per cheque.

In the spring of 1997 the Bank of Montreal informed the Department that they planned to limit the encashment of social assistance cheques to 10 specific branch locations for non-account social assistance recipients and that they would reserve the right to periodically change encashment locations.

In response, through staff discussions, the Department advised the Bank of Montreal that the restriction of encashment to 10 designated locations represented a significant reduction in client service and was not consistent with corporate policy of equitable treatment and services for residents of Toronto. Concerns around disabled access, proximity of proposed branches to area offices and access to public transportation were identified. Four of the proposed branches did not have disabled access and three other branches are located within shopping malls which do not appear to have disabled access.

As a result of the identified concerns, the Bank of Montreal officials agreed to reassess their service proposal.

Not withstanding ongoing staff discussions, on April 9, 1998, the Bank of Montreal outlined the terms and conditions under which the bank would be willing to extend its social assistance banking arrangements with the Department past the April 30, 1998, termination date.

With payment processes for social assistance clients currently under review and the overall corporate banking contract currently subject to a Request For Proposal (R.F.P.), the Department required an interim solution having minimal client and administrative impact. Consequently, an extension of the existing banking relationship was desirable and appropriate, given that no other bank is currently interested in meeting the Division's specific service needs on a dedicated basis.

Comments:

Effective May 1, 1998, the Bank of Montreal will limit the encashment of Social Assistance cheques to 13 locations, Appendix I, for non-customers of the bank and will establish a flat fee for encashment of Social Services cheques to $60,000.00 gross per month. Currently the volume driven fees for cheque encashment average approximately $48,000.00 per month.

Due to the limited time lines, the Division has had to accept the arrangement. The concerns noted in response to the spring 1997 proposal are still valid. In the interim, through a cheque insert, staff are notifying the restricted access to 13 branch locations for non-account customers and by way of posters in the area offices' reception areas. Regardless of staff interventions, there is bound to be confusion on the part of clients, particularly with the other concurrent social assistance regulation changes to eligibility requirements.

Presently, the average monthly caseload is estimated to be 85,000. Approximately 65 per cent. of all payments are delivered via direct bank deposit. The balance of allowances are issued via cheques of which it is estimated that 9,600 are cashed directly at the branches of the Bank of Montreal for which the new services are affected.

Currently, the City of Toronto is in the process of selecting a bank for its general banking requirements through a request for proposal procedure which will likely have a selection within this month and implemented by mid-year. Social services banking requirements have been incorporated as part of the general corporate requests and are expected to be met by the successful proponent. Social Services will be available to ensure their client needs are addressed with development of service arrangements with the successful proponent.

Conclusions:

The Social Services Division is committed to ensuring recipients of social services benefits have appropriate access to mainstream banking services. The Division is concerned that, in the interim, social assistance clients will not have equitable access to banking services as a result of the restricted new cheque encashment procedures. It may result in having the 13 designated bank branches considered "welfare bank branches" further stigmatizing and marginalizing social assistance clients.

In the meantime, Social Services staff will stress to Finance staff the importance of negotiating access for social assistance clients to mainstream banking services including open access to the encashment of social assistance cheques.

Contact Name:

Heather MacVicar, Tel: 392-8952

--------

Appendix I

Special Notice for Clients Without Bank Accounts Cashing Cheques

Beginning May 1, l998, clients without bank accounts who wish to cash Social Assistance cheques at the Bank of Montreal can only use the following locations:

2122 Bridletown Circle at Echo Point2448 Lakeshore Boulevard at Mimico-New Toronto

2739 Eglinton Avenue East at Brimley1530 Albion Road at Kipling-Shoppers World

3601 Lawrence Avenue East at Markam*885 Jane Street at Alliance Road-Jane Park Plaza

1220 Queen Street East at Leslie1293 Bloor Street West at Lansdowne*

175 Bloor Street East at Church1211 King Street West at Dufferin*

6 King Street West at Yonge* 1 Yorkgate Boulevard at Finch Avenue-

Yorkgate Mall

1700 Wilson Avenue at Jane Street

* Locations are not wheelchair accessible

The Community and Neighbourhood Services also submits the following communication (April22, 1998) addressed to Mr. Eric Gam, Executive Director, Social Development and Management Services Division, Community and Neighbourhood Services, from Mr.EdwardJ.Zinger, Vice-President, Government Building, Bank of Montreal:

Further to our telephone discussions of yesterday and earlier today concerning our contract extension letter dated April 9, 1998, and Ms. Shirley Hoy's response dated April 15, 1998, I am pleased to confirm the following:

-cheque encashment will not be restricted to the 13 locations noted in our April 9, 1998, letter, rather they are the primary branches now used by your clients and therefore they are the branches that will be staffed and equipped to meet the needs of your clients. As always cheques can be cashed at any branch that City of Toronto clients wish to cash their cheques at; and

-fees for cheque encashment will remain unchanged, to that now in effect, through to December 31, 1998.

We are pleased to have this opportunity to clarify our position on the cheque encashment locations and to address your concern over the pricing.

3

Emergency Shelter for Youth

(City Council on May 13 and 14, 1998, adopted this Clause, without amendment.)

The Community and Neighbourhood Services Committee recommends the adoption of the communication dated April 9, 1998, from Councillor Jack Layton, Co-Chair, Advisory Committee on Homeless and Socially Isolated Persons.

The Community and Neighbourhood Services Committee reports, for the information of Council, having requested the Commissioner of Community and Neighbourhood Services to submit a progress report regarding emergency shelter for youth to the Community and Neighbourhood Services Committee.

The Community and Neighbourhood Services Committee submits the following communication (April 9, 1998) from Councillor Jack Layton, Co-Chair, Advisory Committee on Homeless and Socially Isolated Persons:

Purpose:

To address the impending emergency shelter service gaps for youth as a result of scheduled closures on April 30, 1998, of the three temporary winter hostel sites and the Out of the Cold programs.

Funding Sources, Financial Implications and Impact Statement:

Financial implications of the proposed recommendation should be absorbed by the existing Hostel Services Division budget.

Recommendations:

Given that a number of the temporary winter facilities, created by the Hostel Services Division during the winter of 1997/98 to address increased demand for daytime and overnight emergency shelter, are scheduled to close on April 30, 1998, resulting in a significant reduction in overnight services for a minimum of 120 youth, per night, it is recommended that:

(1)the City of Toronto Hostels Division recognize the need for expanded overnight services for youth as a high priority and continue to explore all possible options for meeting the needs of youth using the services at The Satellite, 60 Richmond Street, 11 Ordnance Street and the Out of the Cold programs, specifically:

(a)that existing youth shelters be surveyed to determine the potential for adding "emergency service" beds, funded at the current per diem rate;

(b)given the success of the model utilized by Eva's Place at The Satellite, that a high priority be placed on finding another facility to enable the program to continue to operate; and

(2)the City of Toronto promote the creation of permanent housing for youth in recognition that emergency shelters are not an effective long term solution to homelessness.

Council Reference/Background/History:

On October 8, 1997, the former Metropolitan Council received a report, entitled "The Homeless Crisis in Metro," from the Commissioner of Community Services which described the growing crisis of homelessness in Toronto along with suggested actions to enable an effective winter response. The former Metro and City of Toronto Councils authorized staff to co-ordinate the release of municipal building space for emergency shelter purposes for the winter of 1997/98. Staff of Metro and the City of Toronto worked with community agencies to successfully develop three additional sites at 60Richmond Street, 11 Ordnance and at the Sheppard Subway, a facility dedicated for youth called The Satellite. The Satellite is operated by Eva's Place, an existing youth shelter in North York. The expected closure of these winter shelters and Out of the Cold Programs on April 30, 1998, will result in a loss of approximately 450 beds to the system.

The Satellite, with space for 40 youth, report operating at full capacity since its opening. This suggests the value of this alternative service model which is targeted toward youth who typically do not use youth shelters. Limited rules and demands have attracted youth from squats, "squeegee kids", and youth living on the street. Staff report success with this model and have successfully assisted a number of youth along the path to permanent housing.

The new facilities at 60 Richmond and 11 Ordnance report an unexpected demand for service by youth. An average of 35 youth stay at 60 Richmond per night with another 20 young people staying at the Ordnance site. Staff also report a high number of "squeegee kids" using these services.

The Out of the Cold program established a once a week, dedicated youth program for the first time this winter. They provide food and shelter to 25 to 40 youth per night. In addition, 5-10 percent of those using the regular Out of the Cold programs are youth.

In addition to the unexpected demand for emergency shelter by youth at these temporary winter facilities, existing youth shelters have maintained consistently high occupancy levels. The demand for emergency shelter by youth does not typically drop during the summer months. In fact, each spring as the Out of the Cold programs close, drop-in hours are reduced and the extreme weather alert beds are eliminated, service demand increases.

A range of emergency shelter models encourage a greater number of homeless youth to find a safe, supportive place to stay. Ensuring that these services are located across the City of Toronto allow young people to remain in their own communities. Familiar supports and services help young people in stabilizing their lives after the chaos of a homeless experience.

Conclusion:

With the scheduled closure of several temporary winter shelters on April 30, 1998, as many as 120young people could find themselves without a place to stay each night. The City of Toronto crafted an emergency system during the winter of 1997/98 to meet the growing homeless crisis in Toronto. Unfortunately, the crisis has not abated. Furthermore, youth who do not tend to use more structured youth shelters have responded to the type of services provided at The Satellite, 60Richmond and 11 Ordnance Street and have come to depend upon them.

An immediate response is needed to avert this crisis for homeless youth in our city. Therefore, the Advisory Committee on Homeless and Socially Isolated Persons calls upon Toronto's Hostel Services Division to recognize the need for expanded overnight services for youth as a high priority and continue to explore all possible options for meeting the needs of youth using the services at The Satellite, 60 Richmond Street, 11 Ordnance Street and the Out of the Cold programs.

--------

Councillor Jack Layton, Co-Chair, Advisory Committee on Homeless and Socially Isolated Persons, appeared before the Community and Neighbourhood Services Committee in connection with the foregoing matter.

4

Preventing Homelessness by Reducing Evictions

(City Council on May 13 and 14, 1998, adopted this Clause, without amendment.)

The Community and Neighbourhood Services Committee recommends the adoption of the following report (April 9, 1998) from the Commissioner of Community and Neighbourhood Services:

Purpose:

This report comments on a plan presented on March 26 and 27, 1998, to the Community and Neighbourhood Services Committee by the Advisory Committee on Homeless and Socially Isolated Persons in their report "An Eviction Prevention Strategy for the City of Toronto." The plan addresses the need for a co-ordinated effort to prevent evictions. The Commissioner was asked to report back on seven of the eleven recommendations contained in the report and on two related recommendations of the Community and Neighbourhood Services Committee.

Funding Sources, Financial Implications and Impact Statement:

A recommendation was forwarded to the April 3, 1998, Budget Committee requesting that Council allocate $55,000.00 to fund eviction prevention strategies. A report was prepared for the April14,1998, meeting of City Council regarding that request.

A report on the funding level and sources for a rent bank pilot project will be prepared and submitted to the Community and Neighbourhood Services Committee should authority for expenditures be required.

Recommendations:

It is recommended that:

(1)a meeting between the Metropolitan Toronto Housing Authority (MTHA), The Metropolitan Toronto Housing Company Limited (MTHCL), Cityhome and representatives of the Advisory Committee on Homeless and Socially Isolated Persons be convened to discuss policies and procedures for working with tenants to avoid arrears and economic evictions;

(2)the Commissioner of Urban Planning and Development Services report to the Community and Neighbourhood Services Committee on the matter of the proposal for a "Use it or Lose it" by-law as considered by the former Metropolitan Council at the time of adoption of the Report of the Metro Stakeholder Panel on Housing in September 1997;

(3)City Council refer the report "An Eviction Prevention Strategy for the City of Toronto" from the Advisory Committee on Homeless and Socially Isolated Persons to the Commissioner of Urban Planning and Development Services to be considered in their 1998 review of a uniform by-law for accessory apartment units and for a report back to the Community and Neighbourhood Services Committee as soon as possible;

(4)the Commissioner of Community and Neighbourhood Services be authorized to undertake a proposal call for a rent bank pilot project as outlined in this report, and report back should authority for funding be required; and

(5)the appropriate City officials be authorized and directed to take the necessary action to give effect thereto.

Council Reference/Background/ History:

At the March 26 and 27, 1998, meeting of the Community and Neighbourhood Services Committee, the Advisory Committee on Homeless and Socially Isolated Persons proposed a plan of co-ordinated action, research and education in order to prevent evictions from rental accommodation, especially among households with low incomes for whom homelessness is a very real risk.

This report comments on seven key elements of a plan proposed by the Advisory Committee on Homeless and Socially Isolated Persons and two other recommendations arising from discussion at the Community and Neighbourhood Services Committee on March 26 and 27, 1998.

Comments and/or Discussion and/or Justification:

The rate of evictions from both private and public sector housing has increased steadily since 1992. The number of eviction applications in Toronto processed by the courts in 1997 (23,174) is 25percent higher than in 1992 (17,224). Writs of Possession have also increased in 1997, with 8,195 households visited by an officer of the Sheriff's Office (3,000 more than in 1992.) Changes in landlord tenant legislation within the next few months and continued economic pressure may continue to push this rate upward.

The causes of evictions and the consequences for tenants were the subject of a forum on eviction prevention in June 1996. The ensuing report "Working Together - An Exploration of Strategies to Prevent Evictions" recommended specific actions including: promoting landlord/tenant mediation services, particularly where early intervention will prevent eviction; investigating the viability of rent banks; developing and distributing public education on eviction prevention including encouraging landlords to post information for tenants; and further research on evictions.

The plan developed by the Advisory Committee on Homeless and Socially Isolated Persons arises from the recommendations of this forum and work which has been completed subsequently.

(1)Purchase of Service Agreement with Federation of Metro Tenants' Associations (FMTA):

The Community and Neighbourhood Services Committee requested the Commissioner to comment on a proposal by the FMTA to undertake a public education campaign aimed at preventing evictions from rental accommodation. The request for $55,000.00 to fund this campaign (which includes $5,000.00 for printing and translation services) was forwarded to Budget Committee on April 3, 1998. The Budget Committee then requested that the Commissioner report directly to the April 14, 1998, Council meeting on this proposal. The report to Council, entitled "Funding Eviction Prevention Strategies," meets that request.

(2)Best Practices to Avoid Economic Evictions at MTHA, MTHCL, and Cityhome:

The Advisory Committee requested that a joint meeting of staff from MTHA, MTHCL and Cityhome convene a meeting with representatives from the Advisory Committee to discuss their policies and procedures for working with tenants to avoid arrears and economic evictions. The purpose of these discussions will be to share information on the best practices of each of the housing companies. Staff support this recommendation and will convene a meeting in the near future.

(3)Uniform Accessory Unit By-law:

A review of the existing housing policies of each former municipality is being carried out by staff from Urban Planning and Development Services. Staff will recommend which policies should be incorporated into the new Official Plan and which should be retained in secondary or Part II Plans.

Accessory apartments are one area of review. A uniform accessory unit policy and by-law for the City will be considered during the review process, however, the nature of the policy has yet to be determined. Staff recommendations will be brought before the Urban Environment and Development Committee and new housing policies proposed as part of this process.

An issue for those interested in preventing evictions which is related to accessory apartments concerns the loss of rental housing due to conversions, demolitions and severances. The Rental Housing Protection Act created the mechanisms used to reduce the loss of rental housing and it is scheduled to be repealed in 1998 when the Tenant Protection Act comes into effect. Urban Planning and Development staff will consider the issues of uniform condominium conversion and demolition control policies and make recommendations to City Council by the fall, 1998. Until then, the existing policies of the former municipalities remain in effect.

(4)Classification of Rooming Houses as Single Family Dwellings:

This item has been referred to the City Legal Services who will report back to the Community and Neighbourhood Services Committee at its meeting on May 21, 1998.

(5)Rent Bank Pilot Project for Women and Children:

Housing Division staff have gathered information on rent bank programs in other jurisdictions and the general finding is that these programs are effective in preventing evictions and displacement of families. Consultations with legal aid lawyers, housing workers and shelter operators have led staff to recommend that we develop a pilot project as described below.

The notion of preventing evictions, and keeping people out of shelters has received considerable support in cities in the United States. In 1996, in San Francisco the average grant ($600.00) under their Season of Sharing program is half the cost of a month's stay in a family shelter ($1,258.00) and 75 percent of the grant recipients are still in their housing six months after receiving the grant. Similar programs in St. Louis, Berkeley, New Jersey, and Connecticut have expanded since their inception in the late 1980s. Evaluations show these programs to be two to seven times more cost-effective than sheltering families in motels.

In Toronto, the concept of a Rent Bank was proposed in late 1996 as a result of the Eviction Prevention Forum. St. Stephen's Community House supported this proposal and provided service statistics to demonstrate the need. In 1997, they tracked 50 cases where funds from a rent bank would have complemented the landlord tenant mediation service, possibly keeping families in their housing.

On the basis of the background research and the information from St. Stephen's, staff are developing a proposal for a rent bank pilot project.

The recommended model has the fund administered by a community agency through a municipal grant, with additional funding provided where available (Canada Mortgage and Housing Corporation may fund certain program evaluations for example). Women and children at risk of losing their housing due to short-term financial pressures will be the target for this pilot project. The individual grant will be offered as an additional incentive in negotiated settlements between landlords and tenants.

A steering committee should be established, providing accountability for a fund and overall project management. This committee should consist of community partners with expertise in the following areas: landlord/tenant legislation, mediation, financial counselling, women's shelters and housing, private and public sector housing management, and program evaluation.

The general aims of a pilot project should be:

(a)to research and develop a rent bank fund, which includes setting eligibility and access criteria for women and children at risk of eviction;

(b)to operate the rent bank by accepting referrals, negotiating grants to individuals, providing mediation and follow-up services, and by tracking outcomes; and

(c)to provide a final report on a pilot project which evaluates the cost-effectiveness of ongoing operation of a rent bank as an eviction prevention strategy.

The budget requirements and possible sources of funds for a pilot project need to be identified in consultation with agencies which have expressed support for and commented on the notion of a rent bank pilot project. If this undertaking cannot be absorbed in existing grant funds or outside funding sources, staff will report back. Housing staff are now preparing to proceed with a targeted proposal call to agencies interested in running a pilot project.

(6)City of Toronto Policy on Use of Vacant Housing Units:

The former Metropolitan Council adopted recommendations contained in the report from the Metropolitan Stakeholder Panel on Housing at their meeting on September 24 and 25, 1997. At the time, Metropolitan Council also had before it a proposal from the Ontario Coalition Against Poverty for a "Use it or Lose it" by-law concerning the appropriate use of vacant residential property. Metropolitan Council requested that the Commissioner of Planning of the new City report, in consultation with the City Solicitor, to the appropriate standing committee of the City of Toronto Council on how the proposed "Use it or Lose it" by-law operates in other jurisdictions where such mechanisms are in place and on a strategy for the implementation of the proposed by-law. The Advisory Committee is requesting that the Commissioner of Planning and Urban Development report on this. Therefore, it is recommended that the Commissioner of Planning and Urban Development Services report to the Community and Neighbourhood Services Committee on this matter.

(7)Two Additional Items:

Feasibility of a City Tenant Help Centre:

Staff were asked to report on the feasibility of establishing a City Tenant Help Centre in municipal offices to help tenants get information on landlord/tenant legislation and legal representations should they so require. These services require the expertise of an experienced organization, such as the Federation of Metro Tenants' Associations, that has been established to provide tenants with advice and referral to legal representation. It would not be appropriate for City staff to provide these services or to provide interpretations of the legislation concerning landlords and tenants.

For the municipality to provide one-on-one, personalized services on landlord/tenant matters, while other expert groups are performing this function would not be appropriate as services would be duplicated. Also, the number of tenants and the intensive use of municipal staff for this function would make the service a costly one to operate. The municipality can, however, ensure that information which is produced for the tenant population is disseminated widely and provided to appropriate City staff.

Streamlining Administrative Practices:

The second item concerns the feasibility of streamlining administrative practices to increase the authority that local housing offices have in decision-making. This issue was raised in the context of the Metropolitan Toronto Housing Authority (MTHA) and steps they might take in their district offices to avoid evictions. While staff concur with the desire to increase local decision-making, at this point, the City has no authority over the management of MTHA which is owned by the Province.

On the other hand, Cityhome and The Metropolitan Toronto Housing Company Limited are owned by the City and will be merging to form one non-profit company by 1999. A goal of this amalgamation is to move decision-making as close to tenants as possible, thus enabling local flexibility in responding to individual circumstances (e.g., in dealing with rent arrears or budget expenditures for maintenance.)

Conclusion:

The notion that evictions and therefore some cases of homelessness can be prevented through a co-ordinated effort has merit. The plan of the Advisory Committee on Homeless and Socially Isolated Persons sets out possible strategies to address the consistent rise in evictions, through action, research and education. Many of the specifics of this plan are addressed in this report, in each of the eight distinct but related subsections. The recommended next steps include immediate action in some cases, and in others further deliberations and consultations are required. In principle, the municipality and its community partners need to continue to work toward satisfactory resolutions of situations which lead to evictions, thus keeping families and individuals in their housing.

Contact Name:

Joanne Campbell

Tel: 392-6135/Fax: 392-3037

5

Proposed Redevelopment - North-East Quadrant,

North Regent Park, Don River Ward

(City Council on May 13 and 14, 1998, adopted this Clause, without amendment.)

The Community and Neighbourhood Services Committee recommends the adoption of the following report (April 7, 1998) from the Commissioner of Community and Neighbourhood Services, subject to amending Recommendation No. (1) to read as follows:

"(1)staff be directed to continue working with Provincial representatives, the Province's development partner, the North Regent Park Working Committee and community representatives to further the proposed redevelopment, on the basis of the City goals and objectives set out in the body of this report;":

Purpose:

To inform Council of the redevelopment which is being planned for the area bounded by Gerrard, River, Oak, and Sumach Streets, and of the position staff has taken to date regarding the proposal. To seek Council's endorsement of that position, and obtain any additional input Council may wish to provide.

Funding Sources, Financial Implications and Impact Statement:

To be determined. No impact on the 1998 budget. Financial information on this proposal will be provided when the details are further developed.

Recommendations:

It is recommended that:

(1)staff be directed to continue working with Provincial representatives, and with the Province's development partner, to further the proposed redevelopment, on the basis of the City goals and objectives set out in the body of this report;

(2)staff be instructed to report back to Council when the redevelopment proposals are further advanced including all costs, revenues, and any contribution from the City, if required; and

(3)staff be requested to report again in two months on the progress of negotiations between the parties, and the extent to which the City's goals and objectives are being satisfied.

Background/History:

In May 1997, the Ministry of Municipal Affairs and Housing, on behalf of the Ontario Housing Corporation, issued a Request for Proposals (RFP) to the development industry for the redevelopment of the north-east quadrant of North Regent Park via a public/private partnership. The proposed redevelopment area comprises the lands bounded by Gerrard Street on the north, River Street on the east, Oak Street on the south, and Sumach Street on the west (see plan attached).

The RFP elicited seven responses. These were assessed by a team comprised of one representative each from the former City of Toronto, CMHC, the Ministry of Municipal Affairs and Housing, and the Metropolitan Toronto Housing Authority, and three tenant representatives of the Regent Park community. The professional advisor was Barry Lyon. This team ultimately recommended two proposals. The Arcadia Group was selected by the Board of the Ontario Housing Corporation as the party with which the Province would negotiate a development agreement. Those negotiations are still underway. In the absence of an agreement satisfactory to the Province, they have the right to go to the second candidate.

The issuance of the RFP flowed from the initiatives of a Working Committee of Regent Park tenants and resource people, chaired by John Sewell. That Committee continues to meet with Provincial staff and Arcadia, to work out the plan for, and details of, the proposed redevelopment.

The subject site currently contains 163 subsidized housing units in a variety of sizes - a few on-grade townhouses, and the rest in three-storey walk-up apartments. All are in a deteriorated condition and in need of significant repair. The RFP required the replacement of the existing units, and the creation of additional units of market housing to assist in re-establishing a mixed-income, mixed-tenure community. One of the other stated objectives of the proposal is to reintegrate the Regent Park community with the surrounding neighbourhoods.

The Arcadia Group's concept is to use the income from the land used to build the market units to finance the shortfall that will exist between the cost of construction and ongoing operating costs of the new RGI units, and the money currently available from existing government subsidies and tenants' rents. By prepaying the shortfall as an annuity, Arcadia believes it can be reduced to a level that can make the project financially successful.

The Province has agreed to continue the flow of subsidy funds to the replacement units. The current subsidies are paid under a Federal/Provincial agreement which expires in the year 2011.

The site is owned by the Ontario Housing Corporation, however the City of Toronto has a reversionary interest in the land and will regain title in the year 2024, i.e., thirteen years after the current subsidy agreement expires. Under an Agreement dated May 1, 1969, Central Mortgage and Housing Corporation (CMHC) loaned the Ontario Housing Corporation (OHC) some $7.5 million to acquire the entire North Regent Park site, comprising 1,397 housing units. The loan was repayable in 45 years, and therefore comes due in 2014. For the proposed redevelopment of the north-east quadrant to take place, CMHC's consent will be required.

The Ministry of Municipal Affairs and Housing wrote to me on January 26, 1998, "to formally request that the City of Toronto proceed to take those steps necessary to relinquish to Ontario Housing Corporation the City's remaining interest in the site."

The Provincial share of subsidies currently paid to finance all of North Regent Park are being down-loaded onto the City. Only the responsibility for administration of the program remains to be decided.

Comments:

A team comprised of staff from various City Departments has been formed to deal with this Provincial/private sector proposal. That group has started to formulate the goals and objectives that the City should establish for the proposed redevelopment. In the absence of a specific proposal, and without a plan or pro-forma, we are only able to address the proposed undertaking at a very general level. Therefore, we are taking this opportunity to make Council aware of the proposed redevelopment, and to set out the position taken to date by staff. We are seeking endorsement of the staff position, and authority to continue working with the Province and Arcadia in an effort to bring it about as quickly as possible.

The Commissioner has responded to the request that the City relinquish its interest in the land by saying that the City will consider restructuring its interest in a way that will facilitate the redevelopment. Beyond that, we have set out the following objectives:

-Protection of Affordable Housing: The new units which replace the existing stock must remain rental in the long term, and be affordable to low-income tenants in the long term. Some means of ensuring their availability for long-term affordable rental must be put in place, whether by a lease of the land under the replacement units, or by means of a social housing agreement, or equivalent, registered on title to those units. Similarly, appropriate protections for existing tenants through relocation, into the proposed new units, and for their future longterm tenure must be provided.

-Planning Approvals: The redevelopment must result in a livable community, and one which complements the surrounding neighbourhood. The City expects its normal planning approval process will be followed, but will endeavor to expedite that process to the extent possible. This approval process will likely entail an Official Plan Amendment, a site-specific rezoning, the subdivision of the land, and development review. These approvals may be dealt with simultaneously, under one application.

-City Contributions to the Redevelopment: The Province has indicated, in its RFP, that it wishes the proposed undertaking to be "expenditure neutral" from its point of view. The City is being asked to give up its reversionary interest in the land in the north-east quadrant. The value of the City's reversionary interest in the remainder of the land will likely increase in the future if the redevelopment proceeds and moves into further phases. In addition, the City may be requested to front-end infrastructure costs, and to forego various development charges. If the City is formally requested to contribute financially to the transformation of part of North Regent Park, our position should be that it is reasonable to expect equivalent contributions from senior governments. The City's position should be "expenditure equal" with the other levels of government.

-General Issues: The Province and the developer have been made aware that the City is prevented, under Section 111 of the Municipal Act, from bonusing private developers, by assisting a commercial enterprise, either directly or indirectly.

The City has indicated that it wishes to be kept apprised of Agreements between the Province and the developer. In general, we are looking for a full and open exchange of information, past and future. There is no hard information presently available regarding the costs or financial viability of the proposed redevelopment, the anticipated schedule, nor the proposed plan. All this material is required to evaluate the costs and benefits of the proposal, and for the City to make a decision regarding the Province's request that it relinquish its reversionary interest in the site.

The position that the City is putting forward here relates only to the proposed redevelopment of the quadrant bounded by Gerrard, River, Oak and Sumach Streets. If redevelopment continues in subsequent phases, the City reserves the right to reassess its goals, objectives and requirements, and to make such changes as it deems necessary or desirable.

We are aware that all parties, and, in particular, the residents of North Regent Park, are anxious that decisions be made as quickly as possible to advance the proposed redevelopment. The City's willingness to relinquish its reversionary interest in the land is a key to allowing the redevelopment to proceed. Staff should be requested to report back within two months on the progress of the negotiations between the parties, and the extent to which they are satisfactorily addressing the City's goals and objectives for the redevelopment.

Conclusions:

The redevelopment of part of North Regent Park will represent a significant benefit to the local community, and to the City. These benefits will include the amelioration of an area currently in need of upgrading; its reintegration with the surrounding communities, both through plan changes and the addition of ownership units to create a mixed-income neighbourhood; the introduction of additional retail space on a main street; the expansion of the City's tax base; and, in the longer term, the creation of greater value in the City's reversionary interest in the balance of the Regent Park land.

If this first phase of redevelopment can be successfully accomplished, and lead to the ultimate redevelopment of the entire area, the benefit will increase more than proportionately. In addition, the successful realization of this redevelopment will be a precedent for similar undertakings all across Canada. Therefore, it is in the City's interest to encourage the proposal, and to take such steps as it may deem appropriate to help bring it about. Staff should continue to work with the Province and their development partner, and be instructed to report further as the plan and implementation proposals evolve.

Contact Name:

Ross Winter

Tel: 416-392-6614/Fax: 416-392-0560

--------

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

-Ms. Debra Dineen, resident of Regent Park;

-Mr. Mohammed Mohammed, resident of Regent Park;

-Councillor Pam McConnell, Don River; and

-Councillor Jack Layton, Don River.

Attached map

(Regent Park North Redevelopment Site)

6

Other Items Considered by the Committee

(City Council on May 13 and 14, 1998, received this Clause, for information.)

(a)Presentation by the Metropolitan Toronto Housing Authority.

The Community and Neighbourhood Services Committee reports having directed that:

(1)the appropriate staff be requested to:

(a)invite representatives of the two local unions that represent the Metropolitan Toronto Housing Authority on-site workers, tenant representatives, and others who may be interested, to speak to the Community and Neighbourhood Services Committee; and

(b)together with Councillor Chow and other interested Members of Council, develop a framework for such discussion; and

(2)the Commissioner of Community and Neighbourhood Services be requested to report, as soon as possible, to the Community and Neighbourhood Services Committee on whether the capital funding details provided by MTHA in the following presentation included the $200 million repairs highlighted by the Provincial Auditor in his 1997 report.

Mr.Rashmi Nathwani, Chair, and Mr. Peter Schafft, Chief Executive Officer, Metropolitan Toronto Housing Authority, gave an overhead presentation respecting the role of the Metropolitan Toronto Housing Authority, and tabled the Ontario Housing Corporation Summary and Detailed Reports, entitled "Analysis of Building Condition Assessments", dated March 1998.

--------

Councillor Pam McConnell, Don River, appeared before the Community and Neighbourhood Services Committee in connection with the foregoing matter.

(b)Toronto District School Board - Pressures Resulting from Provincial Restructuring of Education Finance.

The Community and Neighbourhood Services Committee reports having deferred the presentation from the Toronto District School Board until its next meeting to be held on May 21, 1998, at the request of the School Board:

(April 6, 1998) from Mr. John Davies, Director - Executive Council, Toronto District School Board, requesting the opportunity to appear before the Committee to discuss a number of issues resulting from the Provincial restructuring of education finance which has created considerable pressure on the ability of school boards to deliver services to the community.

(c)Impact of Education Funding Changes on Programs for Children.

The Community and Neighbourhood Services Committee reports having concurred in the recommendations of the Children's Action Committee embodied in the following communication from the City Clerk and in Notice of Motion 9(i) by Councillor Chow, seconded by Councillor McConnell, on the Order Paper for the April 28, 1998, meeting of City Council:

(April 15, 1998) from the City Clerk advising that on April 6, 1998, the Children's Action Committee recommended to the Community and Neighbourhood Services Committee that:

(1)the Provincial Government be advised of Council's extreme concern that the Provincial Government's new education funding model will jeopardize the services currently provided in Toronto to children and their families;

(2)the Provincial Government be requested to review its education funding allocation and broaden its definition of classroom and student needs to include the whole education community to ensure that there are adequate resources available to address children's needs such as: nutrition programs; childcare; adult education; after four programs; community use of schools; programs and services for newly arrived students and their families; additional staff and programs for inner City students; and other services that improve a student's "Readiness to Learn";

(3)the Provincial Government be invited to appoint two MPPs from its caucus representing the Toronto Area to work with City and Toronto School Board officials to ensure that the programs listed in Recommendation No. (2) are protected; and

(4)the Toronto School Boards be requested to continue their immigration settlement activities by creating a partnership approach which involves the Toronto School Boards, the City, and the Provincial and Federal Governments.

(d)Toronto Heritage Fund Grant Application - 45 South Drive.

The Community and Neighbourhood Services Committee reports having referred the following report to the Municipal Grants Review Committee for consideration:

(March 31, 1998) from the Managing Director, Toronto Historical Board, advising that on September 18, 1997, Ms. Louise Mac Donald, Mac Donald Design Build Inc., acting for the owner of the property located at 45 South Drive, applied for a Toronto Heritage Fund grant for the restoration of the exterior of the building; and recommending that:

(1)the Toronto Heritage Fund application for 45 South Drive for a matching sum of up to $5,000.00 be approved;

(2)the grant be conditional on the owner entering into a Restoration Grant agreement prepared by the City Legal Department, in consultation with the Managing Director, Toronto Historical Board; and

(3)the owner ensure that the Board's support for the project is suitably recognized.

(e)Provision of Dental Services to Social Assistance Recipients.

The Community and Neighbourhood Services Committee reports having received the following report:

(April 14, 1998) from the Commissioner of Community and Neighbourhood Services providing an update on recent Provincial announcements regarding the provision of dental services for social assistance recipients in Toronto, and on the larger review of changes in dental services provided by the Municipality that is being undertaken jointly by Toronto Public Health and the Social Services Division; and recommending that the report be received for information.

(f)Carefree Lodge Home for the Aged - Three-Year Accreditation Award.

The Community and Neighbourhood Services Committee reports having received the following communication; and having extended its congratulations to the staff, the Home Advisory Committee, and volunteers at Carefree Lodge.

(April 3, 1998) from the City Clerk advising that the Advisory Committee on Homes for the Aged on April 3, 1998, had before it a report from the General Manager, Homes for the Aged, indicating that the accreditation survey for Carefree Lodge by the Canadian Council on Health Services Accreditation was carried out from November26-28, 1997, and that the Home received a three-year award.

Respectfully submitted,

GORDON CHONG,

Chair

Toronto, April 23, 1998

(Report No. 4 of The Community and Neighbourhood Services Committee was adopted, without amendment, by City Council on May 13 and 14, 1998.)