Housing First Policy for Surplus City-owned Property
The Strategic Policies and Priorities Committee recommends the adoption of the
Recommendations of the Budget Committee embodied in the following communication
(May26, 1999) from the City Clerk:
Recommendation:
The Budget Committee on May 25, 1999, recommended to the Strategic Policies and
Priorities Committee, and Council, the adoption of the joint report (May 3, 1999) from the
Commissioner of Community and Neighbourhood Services, the Commissioner of Corporate
Services, and the Commissioner of Urban Planning and Development Services.
The Budget Committee reports, for the information of the Strategic Policies and Priorities
Committee and Council, having requested the Commissioner of Community and
Neighbourhood Services to ensure that in every instance where subsidized units are created by
the City, the residents of such units must be from the City's existing prioritized waiting list
and/or from shelter housing.
Background:
The Budget Committee on May 25, 1999, had before it a communication (May 20, 1999) from
the City Clerk advising that the Corporate Services Committee on May 20, 1999,
recommended to the Budget Committee, and Council, the adoption of the joint report (May 3,
1999) from the Commissioner of Community and Neighbourhood Services, the Commissioner
of Corporate Services and the Commissioner of Urban Planning and Development Services,
wherein it is recommended that:
(1)a Housing First policy, as outlined in the Appendix 'A', be adopted;
(2)a target of levering the development of a minimum of 900 affordable housing units on
City-owned sites within the next three years be adopted, and staff report back on a quarterly
basis on the progress of the Housing First policy;
(3)the Commissioner of Community and Neighbourhood Services, in consultation with the
Chief Administrative Officer and the Chief Financial Officer and Treasurer, develop a
five-year capital program for housing and report back on the financing of such a program
including the use of the Capital Revolving Fund and the method of obtaining future
contributions to this Fund; and
(4)the appropriate City officials be authorized to take the steps necessary to give effect to
these recommendations.
--------
(Communication dated May 20, 1999, addressed to the
Budget Committee from the City Clerk)
Recommendation:
The Corporate Services Committee on May 20, 1999, recommended to the Budget
Committee, and Council, the adoption of the joint report (May3, 1999) from the
Commissioner of Community and Neighbourhood Services, the Commissioner of Corporate
Services, and the Commissioner of Urban Planning and Development Services.
Background:
The Corporate Services Committee at its meeting on May20, 1999, had before it a joint report
(May3, 1999) from the Commissioner of Community and Neighbourhood Services, the
Commissioner of Corporate Services, and the Commissioner of Urban Planning and
Development Services, recommending that:
(1)a Housing First policy, as outlined in the Appendix 'A', be adopted;
(2)a target of levering the development of a minimum of 900 affordable housing units on
City-owned sites within the next three years be adopted, and staff report back on a quarterly
basis on the progress of the Housing First policy;
(3)the Commissioner of Community and Neighbourhood Services, in consultation with the
Chief Administrative Officer and the Chief Financial Officer and Treasurer, develop a
five-year capital program for housing and report back on the financing of such a program
including the use of the Capital Revolving Fund and the method of obtaining future
contributions to this Fund; and
(4)the appropriate Civic officials be authorized to take the steps necessary to give effect to
these recommendations.
--------
(Joint report dated May 3, 1999, addressed to the
Corporate Services Committee from the
Commissioner of Community and Neighbourhood Services
the Commissioner of Corporate Services and the
Commissioner of Urban Planning and Development Services)
Purpose:
To implement Recommendation No. (76) of the Mayor's Homelessness Action Task Force by
proposing a policy to make suitable surplus City-owned property available for affordable
housing purposes.
Financial Implications:
The approval of a Housing First policy will allocate sites for housing purposes and, as set out
in the Financial Considerations section in this report, other City initiatives/objectives will be
impacted as a result of land being directed on a priority basis to housing. The individual
financial implications are to be determined on a site-by-site basis, supported by a business
case for the proposed use.
Recommendations:
It is recommended that:
(1)a Housing First policy, as outlined in the Appendix 'A', be adopted;
(2)a target of levering the development of a minimum of 900 affordable housing units on
City-owned sites within the next three years be adopted, and staff report back on a quarterly
basis on the progress of the Housing First policy;
(3)the Commissioner of Community and Neighbourhood Services, in consultation with the
Chief Administrative Officer and the Chief Financial Officer and Treasurer, develop a
five-year capital program for housing and report back on the financing of such a program
including the use of the Capital Revolving Fund and the method of obtaining future
contributions to this Fund; and
(4)the appropriate Civic officials be authorized to take the steps necessary to give effect to
these recommendations.
Background:
City Council, at its meeting of July 29, 30 and 31, 1998, approved with minor amendments a
report (Clause No. 1 of Report No. 11 of The Corporate Services Committee) entitled
"Acquisition and Disposal of Real Property" dealing with various real estate issues, including
a process to declare properties surplus to the City's requirements (see flow chart Appendix
'B'). The disposal process provides for Real Estate staff to consult with the City's agencies,
boards, commissions and departments on whether a property is required for municipal
purposes. The recently established Property Management Committee ('PMC') reviews all
requests for the allocation of property and determines whether sites should be recommended
for disposal.
At the same meeting, Council also adopted a strategy to encourage the creation of affordable
housing and a framework for demonstration projects (Clause No. 7 of Report No. 7 of The
Community and Neighbourhood Services Committee). Council agreed in principle to provide
surplus City-owned land and buildings for community affordable housing projects, as a first
priority. On February 2, 3 and 4, 1999, Council by adoption of Clause No. 13 of Report No. 2
of The Strategic Policies and Priorities Committee established a Capital Revolving Fund for
Affordable Housing and provided $10 million dollars largely from the Social Housing Reserve
Fund.
Recommendation No. (76) of the report of the Mayor's Homelessness Action Task Force
(January,1999) states: "The City should develop a 'housing first' policy for municipal lands to
make suitable sites available for affordable housing..."
Comments:
Rationale for Providing City Land for Housing Affordable Purposes:
Financial pro-formas for new rental construction show that returns are potentially sufficient
that such housing could now be built for high-end rent levels. In order to produce housing for
low-income households, government incentives are needed to bring down the development
costs of such housing. The report of the Mayor's Homelessness Action Task Force suggests
that all levels of government have a role to play in providing such incentives.
The Mayor's Task Force identifies the following four tasks for the municipality:
(1)initiating a framework for partnership between the three levels of government and the
private and non-profit sector;
(2)making sites available for housing development;
(3)providing limited financial support through a capital fund; and
(4)reducing taxes and charges for affordable housing projects.
It is noted that the provision of land for affordable rental units (i.e., if leased to a community
developer at a nominal fee) can reduce development costs by more than 15 percent. It is
recommended by the Task Force that all levels of government make suitable government sites
available for affordable housing.
There are precedents for the contribution of land for affordable housing purposes. Vancouver,
in the early 1990's, provided land on a deferred-return basis for the development of 1,150
rental units. Today, some public-private partnerships, such as those assisted by Canada
Mortgage and Housing Corporation's Partnerships Centre, are using land contributed by
church groups or service clubs. Recently (March 23, 1999), the Provincial Government
announced that it would be making available government-owned land for the development of
a minimum of 500 units of affordable rental housing.
Proposed Housing First Policy:
The Appendix provides a proposed Housing First policy for surplus City-owned real property.
The intent of the policy is to provide direction for the current process of assessing potentially
surplus sites and preparing them for disposition. A variety of possible forms of assistance to
housing providers exist. One form would be making City-owned property available, possibly
for nominal consideration. In doing so, attention will need to be exercised in order to maintain
compliance with the bonusing prohibition in the Municipal Act.
To measure the effectiveness of this policy it is proposed that a target be set for the creation of
affordable housing units as a direct result of these actions by the City. A target of 900 units to
be approved by Council as a result of Requests for Proposal ('RFP') within the next three
years is recommended.
Financial Considerations:
The approval of a Housing First policy will allocate sites for housing purposes. Staff have
previously been directed to maximize the revenue from the sale of surplus properties by
disposing of those properties which were previously surplus to the City's requirements as well
as those properties which were freed up as a result of amalgamation. It was the intention to
utilize the revenue generated thereby to fund capital and operating budget shortfalls and utilize
those funds for other initiatives. The Facilities and Real Estate staff have previously proposed
that a certain portion of the funds generated be allocated to capital maintenance for the City's
remaining property portfolio. As a result of the approval of the proposed Housing First policy,
other City initiatives/objectives may be impacted due to land being directed on a priority basis
to housing. Facilities and Real Estate staff will provide an estimate of market value when the
Property Management Committee is considering requests in order that the Committee can
make a fully informed decision. However, the level of financial return for a particular property
can only be determined once the proposed housing type and tenure is decided and,
accordingly, the individual financial implications can only be determined on a site-by-site
basis.
In initial response to the Task Force Report's Recommendation No. (77), Council established
a Capital Revolving Fund of $10.9 million dollars. Council has not yet dealt with its long-term
approach to capital funding of housing. To this end, it is recommended that the Commissioner
of Community and Neighbourhood Services, in consultation with the Chief Administrative
Officer and the Chief Financial Officer and Treasurer, develop a five-year capital program for
housing and report back on the financing of such a program including the use of the Capital
Revolving Fund and the method of obtaining future contributions to this Fund.
The Chief Administrative Officer and the Chief Financial Officer and Treasurer were
consulted in the preparation of this report and are in agreement with its content and
recommendations.
Conclusions:
The Mayor's Homelessness Action Task Force stated that all levels of government, the private
sector, and the community-based sector should be combined in a City-led housing partnership.
One of the four specific roles identified for the City was to make municipal land available by
adopting a "housing first" policy for surplus and potentially surplus sites.
Allocating City-owned land resources to community groups and the private sector for housing
will directly produce new units of affordable housing while strongly demonstrating the City's
commitment to other levels of government. The Housing First policy report will focus on
providing a new land base for the production of affordable housing while protecting the City's
operational requirements for land.
Contact Name:
Joanne Campbell, Phone: 392-7885, Fax: 392-0548, Mr. Doug Stewart, Phone: 392-7202,
Fax:392-1880, Ms. Barbara Leonhardt, Phone: 392-8148, Fax: 392-3821.
--------
Appendix 'A'
Proposed Housing First Policy for City-owned Property
The goal of the City's affordable housing strategy (Clause No. 7 of Report No. 7 of the
Community and Neighbourhood Services Committee, adopted by City Council on July 29, 30
and 31, 1998) is to create an environment in which the private sector and community partners
will be willing and able to develop affordable housing for people with a range of housing
needs that are not currently being met in the market. The Housing First policy supports this
strategy by using suitable City-owned property to lever the creation of affordable housing by
the private sector and community non-profit groups.
Principle of "Housing First":
The first priority in the decision making process respecting surplus or potentially surplus
City-owned real property should be affordable housing development. For the purposes of this
policy the definition of affordable housing shall be as determined from time to time by the
Council of the new City of Toronto.
Objectives for a Housing First Policy:
The objectives of the proposed Housing First policy are as follows:
(1)to identify and make suitable City-owned sites (land and/or buildings) available to
community groups for the provision of long- term affordable housing;
(2)to forgo or defer revenues from such sites, where it can be demonstrated that long-term
affordable housing will be created as a result;
(3)to require the inclusion of affordable housing in the development of City sites that have
the potential for multiple land uses;
(4)to facilitate the distribution of affordable housing development across all areas of the
City, based on community needs and appropriate community consultation; and
(5)to lever participation of senior levels of government, the private sector and non-profit
community groups in the provision of affordable housing, for example, where funds from the
sale of sites are committed under prior agreement to the Province, the City could request the
Province to make those funds available for housing.
Elements of a Housing First Policy:
The following policy will apply to all property owned by the City, including that under the
operational jurisdiction of its agencies, boards and commissions.
Sites for Affordable Housing:
(1)Review of Potentially Surplus Property for Affordable Housing Potential:
As properties are identified as being no longer required for their current use, the City's Real
Estate staff undertake a circulation to the City's agencies, boards, commissions and
departments (ABCDs) and local Councillors to determine if there is any other municipal
interest in retaining the property for alternative uses or if the property should be declared
surplus to the City's requirements. A determination should also be made as to whether there
are any statutory, title, by-law, contractual or other legal provisions constraining the use or
disposition of that property. If interest is expressed in retaining the property, the ABCD is
requested to complete a business case submission providing preliminary details on the
proposed use of the property for consideration and decision by the Property Management
Committee (PMC). If there are competing interests, affordable housing shall have first
priority, unless in the opinion of the PMC, there is an overriding City interest.
Under the disposal process, the General Manager, Shelter Housing and Support, is notified of
potentially surplus properties for her determination of the site's suitability for affordable
housing initiatives. Housing staff will coordinate their interest with the Ward Councillors
prior to submitting their preliminary business case. The PMC, in considering the General
Manager's preliminary business case submission could temporarily withhold the site from
disposal. Temporarily withholding a site from sale allows the General Manager time for
detailed consultations with City planning staff, other relevant service areas, local Councillors
and to issue a Request for Proposals to identify developer interest. As a result of the foregoing
process, a final report will be submitted to the PMC, and after PMC consideration of same, a
report will be submitted for consideration by Corporate Services Committee and Council on
the proposed use and appropriate means of achieving the City's housing objectives. If the
housing business case is not satisfactory to the PMC, then consideration will be given to other
expressed interests. If no other interest has been expressed, consideration will be given to
disposal on the open market.
Sites with affordable housing potential would fall into two categories: those of modest size
with potential for the development of a single-purpose affordable housing development; and
larger sites with the potential for multiple use development with an affordable housing
component.
(2)Process for Single-Purpose Affordable Housing Sites:
Where the General Manager has determined that a site has potential for development of a
single-purpose affordable housing project, the report to the PMC will include a business plan
to support the use of the site for this purpose. The report will also recommend a process for
leasing the site to a community group or sale to a private developer through an open proposal
call process.
The target of the policy would be to identify and allocate a minimum of ten single-purpose
sites for affordable housing development by the end of 1999. The PMC should have
responsibility for ensuring that this target is met.
(3)Process for Multi-Use Affordable Housing Sites:
In the case of larger sites that have potential for mixed use development with an affordable
housing component, the General Manager's report to the PMC will describe the potential and
recommend a strategy for securing affordable housing benefits through sale of the site. This
may include dividing the site into smaller parcels or including specific requirements for
affordable housing targets in the sales agreement for the site.
The objective of the policy would be to secure 25 percent of the residential development
potential of the site as affordable housing. The PMC should have responsibility for ensuring
that this objective is met.