May 18, 1999

To:Strategic Policies and Priorities Committee

From:Mayor Mel Lastman

Chief Administrative Officer

Subject:Summary of the City of Toronto's Response to the Mayor's Homelessness Action Task Force Report and Implementation Plan.

Purpose:

To summarize City Council's response to the recommendations of the Mayor's Homelessness Action Task Force report, "Taking Responsibility for Homelessness: An Action Plan for the City of Toronto" and to discuss how to implement the City's action plan.

Funding Sources, Financial Implications and Impact Statement:

There are no unbudgeted financial implications for the City arising from this report.

Recommendations:

It is recommended that:

(1)Council thank the chair and members of the Council Strategy Committee for People Without Homes for their work over the past year in fulfilling the mandate of the committee, and further, that future decision making on implementation of the City's homeless action plan occur through the standing committees of Council;

(2)the Chief Administrative Officer and the Commissioner of Community and Neighbourhood Services convene a meeting of the chairs of the Capital Revolving Fund Reference Group, the Property Management Committee, the Advisory Committee for Homeless and Socially Isolated Persons and the Alternative Housing and Services Committee to ensure coordination of the implementation activities outlined in this report;

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

Council Reference/Background/History:

On January 14^th, Dr. Anne Golden presented the Mayor with the final report of the Mayor's Homelessness Action Task Force. Since that time, the City has placed a high priority on developing its response to the report. In a few short months Council has dealt with the major policy and financial issues directed at the City by the Task Force. Most importantly, City Council has answered the call for strong leadership in addressing Toronto's homeless crisis.

In March, the Mayor brought the provincial and federal governments to the table to discuss the role of each level of government in resolving this national crisis. The City also partnered with the Federation of Canadian Municipalities (FCM) to convene the first national conference on homelessness and housing. This event helped to spark a national momentum on these issues and contributed to the design of the FCM National Housing Options paper aimed at generating renewed federal involvement through a national housing program.

Comments and/or Discussion and/or Justification:

The City has taken action on a number of fronts that respond to the recommendations of the Task Force. The following is a list of the key initiatives (see Appendix D for a more detailed summary).

To date the City of Toronto has:

(1)Created a $10.9 million Capital Revolving Fund to lever affordable housing development;

(2)Developed terms of reference for the Capital Revolving Fund and set up a reference group to advise Council on use of the fund;

(3)Agreed to pursue contributions toward affordable housing under Section 37 of the Planning Act for increases in permitted height and/or density as potential source for replenishing the Capital Revolving Fund;

(4)Approved second-suites as-of-right in all single- and semi-detached houses across the city with implementing by-laws to come forward in 60 days;

(5)Adopted policies to control condominium conversion/demolition of rental housing;

(6)Established a new multi-residential property tax class to encourage the development of new rental housing;

(7)Created a $9 million Shelter Fund for families on social assistance;

(8)Created a $50,000.00 rent bank for women with children (provision to increase fund to $200,000.00 is in 1999 budget), and $55,000.00 for additional eviction prevention programs;

(9)Dedicated between $5 to 7 million of social housing savings to the Mayor's Homeless Initiatives Fund;

(10)Decided on a policy of moving away from emergency responses and into prevention strategies;

(11)Endorsed, in principle, the draft of the FCM National Housing Policy Options paper; and

(12)Contributed $60,000.00 to the Big City Mayor's Homelessness and Housing Initiative to campaign for a national housing program.

The City has also approved implementation of the following initiatives:

(1)Developing a semi-annual municipal report card on homelessness;

(2)Taking a broad service planning approach that breaks down service silos;

(3)Began process to create a development charges by-law that will explore the option of a rebate program for affordable rental housing;

(4)A hostel follow up program to help people find and keep their housing;

(5)Bringing together municipal, provincial, institutional and community partners to determine how to implement the Task Force homeless health strategy that addresses health, mental health and addictions issues; and

(6)Bringing together government and community partners to set up more harm reduction programs.

In addition, City Council will be voting on the details of a housing first policy recommending use of municipal lands for affordable housing at its June meeting.

A Role for the Province and the Federal Governments:

The City cannot solve the homeless crisis alone, the provincial and federal governments must be part of the solution. The City continues to work with the Province which recently announced a number of homeless initiatives. The federal government has appointed a minister responsible for homelessness who has agreed to meet with the City to discuss Toronto's homeless crisis. While these first steps are encouraging, we need a stronger commitment by both levels of government.

To date the Province has announced plans to:

(1)Dedicate $45 million for new supportive housing units for people with mental illness;

(2)Provide grants of up to $2,000.00 for PST paid on new affordable housing development;

(3)Spend the $50 million on rent supplements that will come from signing the Social Housing Agreement with the federal government;

(4)Reallocate $2.5 million over next three years from expiring rent supplement contracts to help house 300 to 400 people with special needs;

(5)Made public lands available to create up to 500 affordable rental units;

(6)Transfer the Community Partners Program and the Supports to Daily Living Program to municipalities; and

(7)Commission an affordable housing design competition.

The Province has taken action in the following areas:

(1)Increased the Provincial Homeless Initiatives Fund to $10 million province-wide (Toronto receives $4.724 million annually);

(2)Increased Community Start Up Benefits for families leaving hostels;

(3)Dedicated $1 million to help divert ex-offenders from the hostel system; and

(4)Allowed municipalities to redirect some hostel funding to prevention programs.

Further, we need the Province to:

(1)Restore demolition control powers for municipalities previously allowed under the Rental Housing Protection Act;

(2)Increase the shelter component of social assistance and create a new shelter allowance program for the working poor to ensure people have enough income to afford the housing that is available;

(3)Build more supportive housing units in Toronto and across the Province;

(4)Provide a housing "tool box" for municipalities with resources such as capital grants/equity or a role in lending;

(5)Ensure the creation of second suites does not increase the CVA of residential properties;

(6)Come to the table with the City, institutions and community-based services to resolve issues related to people being discharged from institution, hospitals and prisons to no fixed address.

To date the federal government has:

(1)Appointed a minister responsible for homelessness who is conducting a cross-Canada tour to discuss homelessness issues and solutions;

(2)Provided additional funding through the Residential Rehabilitation and Prevention Program for rental apartments and rooming houses($6.5 million for Toronto in 1999); and

(3)Provided funding support through Human Resources Development Canada to a number of community-based homeless initiatives including Community Information Toronto to create a central bed registry.

Further, we need the federal government to:

(1)Establish a $300 million annual capital program for low-income housing;

(2) Make CMHC mortgage insurance conditions easier for low-cost housing;

(3)Provide direct lending by CMHC to get the lowest possible mortgage interest rates;

(4)Provide GST rebates for affordable housing development;

(5)Provide capital funding for the creation of second suites;

(6)Consider income tax relief for income from second suites;

(7)Contribute $7 million (annually) in RRAP funding to Toronto for rental apartments, rooming houses and second suites;

(8)Make government-owned land available for affordable housing; and

(9)Come to the table with the City of Toronto and its community partners to develop strategies to address the needs of Aboriginal people and immigrants and refugees who are homeless.

Implementing the City's Action Plan on Homelessness:

The Council Strategy Committee for People Without Homes was established last year through a recommendation by the Transition Team with a mandate to analyze the Mayor's Homelessness Action Task Force report. The City has developed its response to the Task Force report and has moved on to implementation. In that regard, there are a number of committees in place to help inform implementation of the City's action plan on homelessness. These groups, listed below, have a mix of politicians, City staff, community and private sector representatives and federal and provincial officials.

(a)The Capital Revolving Fund Reference Group is comprised of a municipal councillor, City staff, community-based and private-sector housing representatives, provincial and federal officials. This group assesses proposals for housing demonstration projects;

(b)The Property Management Committee includes City staff from relevant departments that will serve as one forum for reviewing options to use City-owned land for affordable housing;

(c)The Advisory Committee on Homeless and Socially Isolated Persons includes representatives from a range of community agencies, homeless people, hostels, drop-ins, outreach services, police, mental health and addictions agencies, faith communities, provincial and municipal staff and city councillors. The committee advises the City on service priorities and emerging issues in the sector; and

(d)The Alternative Housing and Services Committee is also a community based group that functions primarily as a staff reference group to the Shelter, Housing and Support Division of Community and Neighbourhood Services on the development of innovative homeless and housing initiatives.

As these committees are already in place and the Council Strategy Committee for People Without Homes has fulfilled its mandate, it is recommended that Council thank the chair and members of the Council Strategy Committee for their contribution to the City's response to the homeless crisis. Future decision making as the City's homeless action plan continues to roll out should occur through the standing committees. Funds made available to the Council Strategy Committee should be redirected to support the work of the above four committees. A report will be forthcoming on the recommended use of the funds.

In addition, it is recommended that the Chief Administrative Officer and the Commissioner of Community and Neighbourhood Services convene a meeting of the chairs of the Capital Revolving Fund Reference Group, the Property Management Committee, the Advisory Committee for Homeless and Socially Isolated Persons and the Alternative Housing and Services Committee to ensure coordination of the implementation activities outlined in this report.

An Interdepartmental Staff Group:

Homelessness is an issue that cuts across many of the City's departments including Community and Neighbourhood Services incorporating Public Health and the Toronto Housing Company, as well as Urban Planning and Development Services, Finance and Corporate Services. These departments have worked closely together over the last few months assisting Council with its analysis of the Task Force report. In order to guide implementation of the City's homelessness initiatives, an ongoing interdepartmental staff group should be established with the Commissioner of Community and Neighbourhood Services as the designated executive lead on homeless issues.

The staff group will provide direction and guidance as implementation of the City's homeless action plan unfolds. As issues arise, Council will provide direction and decision making through appropriate standing committees. The staff group will need to develop a work plan to identify both short and long term initiatives with clear time lines. This work plan should be flexible enough to accommodate emerging issues and to encourage proactive responses.

A Municipal Report Card on Homelessness:

The City will develop a semi-annual report card on homelessness that will document the state of homelessness in Toronto and act as a monitoring tool and an accountability mechanism to assess progress in addressing homelessness. As a monitoring tool it will document initiatives that support or contravene the City's action plan. It will also hold the City accountable for implementing the homeless action plan approved by City Council.

Conclusions:

The City of Toronto has taken and must continue to take a strong leadership role to address homelessness. Council has taken action on the key recommendations of the Task Force directed at the City and must continue to call on the provincial and federal government's to do their part. However, the homeless crisis is still growing in Toronto and more work needs to be done.

The City is committed to implementing all of the initiatives approved by Council. This will require partnerships with other levels of government, institutions and the community-based sector. An interdepartmental group will be set up to guide the roll out of these initiatives. The City will be accountable to the public for implementing its homeless action plan through the new report card on homelessness.

Contact Name:

Shirley Hoy, Commissioner of Community and Neighbourhood Services

Phone: 392-8302/ Fax: 392-8492

Chief Administrative Officer

Appendix A

Summary of Mayor's Homelessness Action Task Force Directions Adopted by City Council

A Municipal Report Card on Homelessness

The City will develop a municipal report card on homelessness, as recommended by the Task Force, to function as a monitoring tool and accountability mechanism to ensure implementation of the City's action plan on homelessness. A proposed format for the report card will be submitted to Council by the Fall. The report card itself will be presented to the Policy and Finance Committee twice a year.

A set of key indicators will need to be developed that reflect the pressure points in the system such as the number of evictions, the number of people using emergency shelter, the use of health and mental health facilities, estimates of gaps in service, social housing waiting lists and progress towards a more sufficient and equitable distribution of affordable and supportive housing and services across the city, region and province.

Coordinating and Simplifying the Service System

In recognition of the need for a comprehensive database of social, health, and housing services and central bed registry, the City supports the efforts of Community Information Toronto (CIT) to establish a bed registry with funding from Human Resources and Development Canada.

Capital funding to upgrade drop-in centres and hostels is essential. Significant funds are required to maintain and upgrade these buildings and the City does not have a capital fund for this purpose. The City has approached the Province to provide a $1.5 million capital fund for hostels and to expand support currently available under the Health and Safety grant program for capital upgrades and food equipment for drop-in centres.

The City agrees with the Task Force that a comprehensive, integrated service planning approach is needed to help break down existing service silos and to ensure effective service delivery for people who are homeless. Service planning will be done according to three sub-groups: families, youth and singles. In addition, the City will continue to channel resources into prevention programs to help people from losing their housing.

The Province recently announced plans to increase the Provincial Homelessness Initiatives Fund by an additional $6 million. The City of Toronto's share is $3.704 bringing the annual amount to $4.724 million. The City must report to the Province by June 1999 on how these new dollars will be allocated. Funding priorities for the City include prevention and diversion programs consistent with the Task Force emphasis on this service focus.

Specific Strategies for High Risk Groups

Families:The growing number of homeless families is of critical concern for the City. Families are staying for longer periods of time in hostels because of the lack of affordable housing. Extended stays present numerous issues, especially for the children. The City has approved a number of short-term strategies such as how to address the education issues for children of homeless families and the need for a long-term strategy to distribute family hostels more equitably across the city to reduce the current concentration in Scarborough.

Youth:The City funds youth shelters and community-based youth services, however, the rise in youth homelessness indicates more needs to be done. The City will urge the Province to support the Breaking the Cycle funding proposal to develop a substance abuse treatment program for young parents. The City, in partnership with Eva's Place youth shelter, is developing a transitional housing support program. An area in which the City will become more proactive is establishing partnerships between youth shelters and local landlords to create more housing units for youth.

Abused Women:At least as many abused women stay in emergency shelters as stay in abused women's shelters. As of 1998, the Province is responsible for funding abused women's shelters. As a long-term goal, the City is encouraging the Province to expand the abused women's shelter system by 380 beds to ensure women have appropriate support in this regard. In the short-term, the Province is urged to fund community agencies to provide support to abused women forced to stay in emergency hostels due to lack of space in the abused women's shelter system.

Aboriginal People:Aboriginal people are disproportionately represented among the homeless and require a range of supports and services with are culturally appropriate. As a first step in developing a strategy for this group, the City will approach the federal government to designate a senior representative to work with the City and representatives of Aboriginal organizations.

Immigrants and Refugees:The City of Toronto will seek the appointment of a federal representative to work with the municipality and representatives of the immigrant and refugee service sector to discuss a broad range of immigration and refugee policy and program issues including those related to homelessness. Refugee claimants are most at risk of becoming homeless, in large part due to the limited supports and opportunities available to them upon arrival in Canada. Basic settlement and health services for refugee claimants as well as another shelter in Toronto, specifically for refugees, are key areas in which the City will seek federal funding.

A Shift to Prevention Strategies

The City will continue to shift away from emergency responses to prevention strategies by directing resources into prevention and diversion strategies while at the same time trying to address the growing demands on the emergency shelter system.

Addressing Affordability Issues for People in receipt of Social Assistance

The City supports the Task Force recommendations to address the critical affordability issues of people in receipt of social assistance. These include asking the Province to increase the shelter component of social assistance to better reflect local market conditions and creating a new shelter allowance program for the working poor. The Province has not implemented either recommendation.

First and Last Month's Rent for Ontario Works Recipients

Under the Ontario Works legislation, last month's rent can be accessed once a year through Community Start Up Benefits (CSUB). These benefits are available for people leaving hostels or institutions or who are fleeing an abusive situation. The Province recently announced plans to increase CSUB from the current maximum of $799.00 to $1,500.00 for families leaving hostels which more accurately reflects these costs.

The City has created a new shelter fund (approximately $9 million for 1999) using the municipal savings from the National Child Tax Benefit. This will be used to help families in receipt of social assistance with first and last month's rent, rental arrears, to secure, maintain or move to more appropriate/suitable housing to help prevent homelessness among families.

Hostel Follow Up

The City supports the Task Force direction to target resources to strategies that help people move out of hostels and into housing and for follow up support to help people keep their housing. This shift has already begun but the City has been limited due to budget constraints.

Hostel operators agree that follow up would make a tremendous difference in helping people to maintain their housing. This kind of support would likely reduce recidivism and make a significant difference to the City's hostel costs as it is estimated that while only 17 percent of people staying in hostels are classified as "chronic" users, they use 46 percent of the hostel system resources. Funding for this type of program (estimated at $2.2 million annually) will be considered under the allocation priorities of the recently increased Provincial Homeless Initiatives Fund.

Housing Help

The Task Force recommends that housing help services be provided at welfare offices by purchase-of-service contracts between Social Services and community-based agencies which provide housing help support. This direction is consistent with existing Social Services policy initiatives to use all available means to assist clients to find and maintain affordable and adequate housing. However, there is no mechanism to fund housing help services under the current Ontario Works legislation.

In 1999, the City has allocated almost $350,000.00 in 1999 for community-based housing help services through the Provincial Homeless Initiatives Fund. While these programs are not located in welfare offices they are targeted to people with low-incomes, many of whom are in receipt of social assistance. City staff will collaborate with agencies which provide housing-help support to determine the most appropriate mechanism for providing this support for the year 2000 and beyond.

The Province plans to download administration of the Ministry of Municipal Affairs and Housing, Community Partners Program, to municipalities. Toronto's share of this program is $900,000.00. Funding will continue to flow from the Province. This initiative is appropriate for the City which funds many of the same housing help and support services. It will enable a more integrated and systematic approach to funding and service delivery.

Eviction Prevention

Consistent with directions proposed by the Task Force the City will continue to fund a rent bank for women and children. The final evaluation of this pilot project in the Fall will inform the decision to increase this fund to $200,000.00, an amount already approved by Council.

A report reviewing the City's current $55,000.00 eviction prevention program and making recommendations for future directions of this program will be before Community and Neighbourhood Services in May. The report will also document significant impacts of the new Tenant Protection Act on tenancy stability and the need for ongoing monitoring. As part of the City's effort to shift away from emergency responses to preventative approaches, eviction prevention is emerging as a key area for funding and program support.

The eviction prevention report will also support the Task Force call to urge the Province to increase funding to community legal clinics. The report does not support the Task Force recommendation for "fast track" evictions in suites in owner-occupied properties as the Tenant Protection Act has already significantly reduced the length of time needed to process an eviction application. A report on a review of funding for the FMTA hotline will go to Community and Neighbourhood Services Committee in early summer.

Community Economic Development (CED)

The City currently allocates about $150.000.00 for CED initiatives through its municipal grants programs. The City is reviewing its role with respect to CED initiatives and will be reporting out to Council. Consideration of the Task Force recommendation regarding the Productive Enterprises Fund will be done within the context of this review.

Discharge Planning

The Province has announced $1 million in funding for the Ontario Multi-Faith Council for discharge planning, including follow up, for people leaving correctional facilities. The Commissioner of Community and Neighbourhood Services will convene a meeting with this group, the John Howard Society and the Elizabeth Fry Society, on the development of these policies. The City will also urge the Province to develop appropriate discharge policies for health and mental health institutions.

A Homeless Health Strategy

The Task Force outlines a comprehensive health strategy to address the health and mental health needs of the homeless population. This includes ways to remove barriers to accessing comprehensive health care. The City is in the process of bringing together municipal, provincial and community partners to develop a strategy to implement the health recommendations contained in the Task Force report. The City will also urge the Province to earmark funds from the transfer of federal monies for health and social services to a dedicated Homeless Health Fund.

The City has approved a homelessness action strategy for Public Health Services building on the existing range of preventative, support and treatment services for homeless persons. This includes five additional full-time positions to support underserviced areas.

The City has committed to taking the lead in bringing together key government and community partners to establish additional harm reduction programs to address the needs of the "hardest to serve", people with a drug and/or alcohol addiction or both a mental illness and an addiction.

Supportive Housing

The Task Force emphasized supportive housing as key to solving the homeless crisis. Council has called on the Province to build 5,000 new supportive housing units in Toronto over the next five years while at the same time adding 8,500 new units across the Province. The Province has committed to $45 million to develop new supportive housing with $20 million allocated in the first year to provide 1,000 new units. This is a smaller scale than is recommended or needed but is a positive first step.

The City will urge the Province to ensure that the definition of special need and eligibility for supportive housing is broad enough to include "hard to house" homeless people whether they have a diagnosis of mental illness or not. The Province is also to expand the Habitat Services program by 200 beds in the year 2000.

The Province plans to download the Support to Daily Living Program to municipalities. This program is currently administered by the Ministry of Community and Social Services and funds supports for housing for "hard-to-house" and homeless people. The total cost of this program for agencies in Toronto is approximately $3 million. The City will ask the Province to maintain administration of this program in recognition of its responsibility for supportive housing.

Affordable Rental Housing

The City has a key role through its land use process to enable the creation of affordable housing. It has significant resources at its disposal to help lever the development of affordable housing such as land, a capital fund and the capacity to set development charges and rental property taxes. It also has planning tools such as restricting condominium conversions and demolitions, liberalizing policies related to the legalization of second suites and rooming houses under certain land use criteria, and utilizing the provisions of the Planning Act (section 37) addressing density incentives. A viable housing strategy must include the preservation of existing rental stock, the stimulation of new rental supply and solutions to affordability issues.

(1)Preserving the Existing Housing Stock

The existing rental housing provides the largest number of affordable units for low-income people. Therefore, efforts to preserve the housing we do have available is a critical component of the City's homelessness action plan. Council has adopted new Official Plan policies and related by-laws regarding condominium conversion and demotion of affordable rental housing. The City is seeking additional authority from the Province in the area of demolition control.

Rehabilitation of private apartments for non-profit use can make cost-effective use of public dollars, and is a way of targeting existing stock to those with affordability problems while also upgrading it. Rehabilitation is seen as a necessary part of a municipal housing mandate. As a delivery agent for the federal Residential Rehabilitation Assistance Program, the City is currently in the process of allocating more than $6.5 million in one-time, additional federal assistance to rooming houses and rental properties in Toronto. This assistance will help repair and preserve about 500 units and will help to bring over 150 units on-stream, at affordable rent levels.

(2)Stimulating New Rental Supply

All levels of government have a significant role to play in helping to "level the playing field" between new rental production and other housing production. Two important steps have already been taken in this regard. First, the City has established a special property tax class for new multi-residential rental housing set at the same rate as residential. The current provincial legislation limits this new tax class to eight years therefore the City will seek an extension beyond this time period. Secondly, the Province has announced a PST rebate on building materials for new multi-residential rental construction of up to $2,000.00 over the next three years. The City is urging an extension beyond this time period.

Equitable GST treatment is also needed to stimulate supply. At 7 percent, GST adds approximately $8,500.00 to private rental unit production costs. Setting it a the freehold rate of 4.5 percent would create a more equitable playing field. The City of Toronto has urged the federal government to implement this important recommendation.

The City is exploring options for streamlining approvals that build on current efforts and take into account best practices as amalgamation provides an opportunity to establish a corporate-wide, fast-track process.

Second suites already provide a significant number of affordable apartments (the Task Force estimates that one out of every five rental units in Toronto is a second suite). City Council has approved second suites as-of-right in all single- and semi-detached houses, subject to building, fire and planning standards. Council will call on the federal government to provide capital funding for the creation of second suites and seek income tax relief for income from second suites. And further, to ask the Province to ensure the creation of second suites does not increase the CVA of residential properties;

The City is in the process of creating a development charges by-law. The by-law will establish a set of charges against new residential and non-residential development. The charges are intended to fund improvements in the City's infrastructure needed to accommodate new development. With respect to affordable housing, options such as a rebate program is being explored as a means of encouraging new construction. The City will hold a public meeting on June 24^th to provide an opportunity for stakeholder input on this issue. The proposed by-law is expected to be tabled for approval at Council in July 1999.

A "housing first" policy has been adopted by the City to facilitate the development of new affordable housing stock. A report (May 3, 1999) entitled "Housing First Policy for Surplus City-owned Property" is also before the Strategic Policies and Priorities Committee on June 1, 1999. This report outlines a proposal for a City, Housing First Policy. The report also recommends that the City commit to creating 900 affordable housing units over the next three years. In addition, that City staff report on the development of a five year capital program for housing with financing options that would include use of the Capital Revolving Fund.

The City has also created an interdepartmental Property Management Committee which could function as one forum for reviewing options pertaining to city-owned land for affordable housing.

The Province has offered to make government-owned land available and will be commissioning an affordable housing design competition. The City welcomes this initiative and will seek to establish a process for working with the Province to identify potential sites.

The City has created a $10.9 million Capital Revolving Fund to assist in the development of new affordable housing and is partnering with the private and non-profit sector on several affordable housing demonstration projects. A reference group of private-sector representatives and others has been set up to provide expert advice in the operations of the fund. City staff are also initiating a proposal for a study and design "charette" on what models of singles housing suit what types of low-income single people.

Toronto has called on the federal government to create a $300 million annual capital program for low-income housing. The City will also ask the federal government to increase mortgage and financing assistance make government-owned land available for affordable housing development. In addition, the City will urge the Province to support municipal affordable housing partnerships through measures such as capital grants/equity or a role in lending, where it has existing capability.

(3)Addressing Affordability Issues

A growing number of people are struggling to afford rental housing rates in Toronto. Rents have been rising while tenant incomes have stayed the same or fallen. In an effort to address some of the affordabiltiy issues, the City will implement a consistent approach on the use of Section 37 of the Planning Act to secure public benefits in exchange for extra height and/or density. The former City of Toronto secured a wide variety of benefits in this way (e.g., social housing, workplace daycare, community service space), providing most of the funds for the Capital Revolving Fund. Council has approved continuation of this practice of using Section 37 to secure public benefits for affordable housing.

Rent supplements are needed to cover the gap between market and affordable rents. The Province has announced a commitment to spend $50 million in savings on rent supplements from the pending provincial/federal Social Housing Agreement, reallocating $2.5 million over the next three years from expiring rent supplement contracts to help house 300-400 people with special needs. The City will seek input on the design of the rent supplement with a goal of immediate implementation.

The City will explore issues related to rooming houses as proposed by the Task Force. Staff will report at a later date following an interdepartmental and community consultation process.

Social Housing Savings

The City is realizing approximately $5 to7 million in social housing savings as old mortgages on city housing projects are renegotiated at today's lower interest rates. These funds will be placed in the Mayor's Homeless Initiatives Fund.

Appendix B

Municipal Operating Expenditures for Homeless Services

Municipal Capital Expenditures for Homeless Services

* This number includes an estimated $6.5 million in one-time only additional RRAP funds for 1999 and $1,466,400.00 in regular RRAP grants for the former City of Toronto area.

These items have been approved through the City's 1999 budget process.

Reserves from Social Housing

Appendix C

Recommendations that impact City of Toronto Operating Budget

*Funding for these initiatives will be considered under the increase to Toronto's share of the Provincial Homeless Initiatives Fund. This fund has been increased from $1.02 million annually to $4.724 million annually. These are 100 percent provincial dollars.

These items have been approved through the City's 1999 budget process.

Appendix D

Recommendations that impact City of Toronto Capital Budget