June 1, 1999

To:Administration Committee

From:Commissioner of Community and Neighbourhood Services

Subject:Lease of 156-158 Munro for Affordable Housing Purposes

Purpose:

To grant authority to staff to lease two vacant uninhabitable City-owned semi-detached houses at 156 and 158 Munro to a community group for affordable housing purposes.

Financial Implications:

The City-owned site at 156-158 Munro was retained by the former City of Toronto Council for use as affordable housing and this decision was reconfirmed by the present Council. However, pending a long term development plan for the site it will not be feasible to redevelop this site for some time. 156-158 Munro forms part of a considerably large site with long term redevelopment potential to accommodate a number of uses over the whole site. The southern portion of the site is a City-owned industrial building, the future status of which has yet to be determined. Longer term plans must be based on consolidation and redevelopment of the whole site. As an interim plan, it is proposed that the two existing semi-detached houses at the front of the property be leased at a nominal rate to a community agency for affordable housing. While the City will not be receiving rent, the community group will assume the operating expenses and the City will receive property taxes of approximately $1,500 per year per house. Any lease agreement with a community agency would make provisions for accommodating the redevelopment of the two houses as part of any future over-all redevelopment of the site. The proposed interim use will provide a public benefit (low-cost housing) and will provide accommodation at less cost to the taxpayer than shelters or hostels.

There are funds currently available in the federal Residential Rehabilitation Assistance Program to renovate the houses to make them habitable, at no cost to the City.

Recommendations:

It is recommended that:

1. authority be granted to lease the two City-owned houses at 156 and 158 Munro Street to a community not-for profit corporation, to be selected through a proposal call process in consultation with the local community and the Ward Councillors, in order to provide affordable housing; further that the terms of the lease provide for a payment of $2 per year, for a term of 15 years, with a cancellation provision on six months notice to the tenant and such other terms that are acceptable to the Commissioner of Community and Neighbourhood Services and the City Solicitor.

2. the appropriate City Officials be authorized to take whatever action is necessary to give effect to these recommendations.

Background:

156-158 Munro is a City-owned site that was retained by the former City of Toronto for the development of affordable housing. The site was rezoned in the early 1990's for a non-profit housing project but could not be developed after the Provincial program was cancelled in 1995. In December of 1998, Council confirmed that this site would be retained for future affordable housing use.

The site consists of two single family dwellings built in 1929 each two storeys with a full basement in a semi-detached building form. The two houses take up a small portion of a considerably larger site (the lot area of 156 Munro is 966.1m2 and of 158 Munro is 111.4m2) with longer term development potential. 156 Munro shares a common boundary with a City-owned industrial building to the south which comprises a substantially larger property with future comprehensive redevelopment potential.

Comments:

Discussions have been held with the two ward Councillors for this site with regard to use of the two semi-detached houses which sit on the front of this site. The development of a long term strategy for the site will take some time. The current objective is to make the two houses habitable for interim use.

Recently funds have become available from the federal Residential Rehabilitation Assistance Program to renovate the houses, but this funding commitment will expire shortly. Previously, City-owned properties were not eligible for RRAP funding.

Councillors Layton and McConnell are initiating a community consultation process to determine what uses would be most appropriate for the community. A number of locally based organizations have been invited to express an interest in leasing the houses. Those organizations will be involved in a community discussion to identify what models and approaches would make the best use of the houses and best fit in the neighbourhood.

Based on the results of this consultation, the Commissioner of Community and Neighbourhood Services will invite community groups to make formal proposals to lease the houses and will be in a position to select a group based on criteria developed with the community. Given timing limitations on funding under the RRAP program, authority is being requested now so that a lease can be entered into following community consultation.

The successful not-for profit corporation could lease the properties to tenants, yielding approximately $1,300 per month per unit. They would be responsible for utilities, maintenance and taxes. It is estimated that the project would be operated on a break even basis. The net cost to the City would be zero and the City would now be in a position to collect property taxes which it hasn't been in since 1988 when the properties were purchased. The proposed interim use will provide a public benefit (low-cost housing) and will provide accommodation at less cost to the taxpayer than shelters or hostels.

We are committed to a community process that selects an appropriate model for use of the two houses and that builds in the recognition of the need to work with the City to accommodate any future redevelopment of the site. City real estate staff have been consulted in the preparation of this report.

Contact Name:

Joanne Campbell

Phone: 392-7885

Fax: 392-0548

Shirley Hoy

Commissioner of Community and Neighbourhood Services