The community housing sector is essential to providing affordable housing and plays an important role in achieving the City’s vision for housing as set out in the HousingTO 2020-2030 Action Plan (“HousingTO Plan”).
To support the HousingTO Plan, Community Housing Partnership Renewal aims to sustain and advance the City’s housing system through preserving assets and maintaining affordability, implemented through new agreements with eligible housing providers.
The development of new agreements with former federal and provincial-administered housing providers are guided by three principles:
This section contains information for formerly provincial-administered housing providers whose mortgages are coming to an end.
Housing projects that were formally funded and administered by the provincial government are also known as provincial reform projects. These projects are designated as Part VII under the Housing Services Act, 2011 and include projects that are both 100% Rent-Geared-to-Income (“RGI”) (formerly known as Section 106 projects) and those with both market and RGI units (formerly known as Section 103 projects). Provincial reform projects operated through a prescribed funding formula that was tied to a housing provider’s mortgage. As these mortgages mature, new provincial regulations enable a new operating framework for the community housing system.
For the purposes of Community Housing Partnership Renewal, this section will be focused solely on Part VII Housing Projects, market and RGI (formerly known as Section 103 projects) due to the legislated changes impacting the funding formula.
To ensure the long-term sustainability of social housing, the provincial government announced a new regulatory framework on March 31, 2022, under the Housing Services Act. This framework allows the City to renew existing partnerships with community housing providers whose mortgages are coming to an end, by entering into new Service Agreements. These agreements support the protection of critical social housing and allow housing providers to continue to offer RGI assistance to households. The framework aims to better meet the housing needs of communities through a more modern arrangement.
On June 26, 2024, City Council adopted the Community Housing Sector Modernization and Growth Strategy, which supports community housing providers to grow and preserve their RGI and affordable housing stock. This strategy takes a comprehensive approach to sustain, modernize, and grow the community housing sector in Toronto.
The City intends to enter into new Service Agreements with housing providers who operate provincial reform projects designated as Part VII under the Housing Services Act with both market and RGI units. A Service Agreement would be a housing provider’s operating framework, which would allow providers to remain in the community housing system, as funded and administered by the City.
Service Agreements change the funding relationship between the Service Manager and housing providers. As mortgages end, funding arrangements can now be determined through a financial assessment with individual housing providers, following the new baseline regulatory requirements. The new regulations allow the City, as Service Manager, to provide funding to ensure sustainability by addressing operating and repair needs long-term.
The City has developed a phased approach to connect with housing providers with maturing mortgages. Housing providers with a project mortgage expiring prior to December 31, 2027 were invited to an information session on November 21, 2023. The information session supported a common understanding of the new legislation, while soliciting considerations and feedback from impacted housing providers. The City retained Housing Services Corporation as a third-party facilitator to support the information session, communication and engagement with housing providers who were impacted by end of mortgage. The Co-operative Housing Federation of Toronto and the Ontario Non-Profit Housing Association joined the session and provided comprehensive presentations that explained the supports and resources available to housing providers as they plan for end of mortgage:
Information Session Summary Report
To support housing providers whose mortgages are coming to an end, the City has developed a Discussion Guide, for boards and staff at non-profits and co-ops who are navigating the transition to a post-mortgage environment. The Discussion Guide is intended to inspire and share ideas about what steps housing providers can take to move forward in discussions on end of mortgage. The Discussion Guide is meant to help you think about the opportunities and challenges, as well as organizational needs, that may arise when your mortgage expires.
Discussion Guide-Expiry of Mortgages
This section contains information for formerly federal-administered housing providers with expired Operating Agreements.
Under federal housing programs, non-profit housing providers under sections 26/27 and section 95 of the National Housing Act entered into Operating Agreements with Canada Mortgage and Housing Corporation. These Operating Agreements established how the housing provider’s subsidy would be calculated, along with obligations. As Operating Agreements expire, new agreements are required to sustain the existing housing stock and relationships with housing providers
On December 17, 2019, City Council adopted the Community Housing Partnership Renewal Program, a new program designed to incentivize former federal housing providers with expired Operating Agreements to enter into new agreements with the City.
The development of Operating Agreements to renew partnerships with former federal housing providers offers many opportunities to expand the scope of the City’s housing portfolio and better meet Toronto’s diverse housing needs, shifting away from a focus on administering legacy programs. The program also involves entering into a municipal housing facility agreement with eligible housing providers to secure affordable housing in exchange for a property tax exemption.
The program provides an opportunity for housing providers to enter into new agreements with the City that will maintain or improve levels of affordability; secure and potentially expand access to the supply of affordable rental housing; and strengthen the capacity of non-profit housing providers in the community. Opportunities with new agreements include continuing to strengthen relations through flexibility and a less prescriptive lens, while contributing to the capacity and sustainability of the non-profit housing sector, including the preservation of housing assets.
City staff have developed a Program Guide to help orient eligible housing providers interested in executing new Operating Agreements and taking advantage of program benefits such as property tax relief, funding opportunities, and access to City resources. The Program Guide includes information about the new flexible program model, program terms, eligibility criteria, approval process, and available resources.
Program Guide-Expiry of Operating Agreements
City staff will continue to engage with eligible formerly federal-administered housing providers about the opportunity to participate. Housing providers that are interested in joining should contact their assigned housing consultant who will provide detailed information.