2014-05-15 Decision Letter - Affordable Housing Committee

The Affordable Housing Committee recommends to the Executive Committee that:

1. City Council authorize the Affordable Housing Office to increase the average loan amount from the Council approved funds for the Home Ownership Assistance Program (HOAP) from $15,000 to $25,000 to better reflect the cost to pay the City’s planning and development fees and charges paid by non-profit partners.

2. City Council defer the Additional Home Ownership Assistance Program (HOAP) Funding of $90,000 for 357 Birchmount Road until a decision has been reached regarding Item SC32.19, titled "357 Birchmount Road - Zoning Amendment Application - Final Report" which Scarborough Community Council, on May 13, 2014 referred back to the Director, Community Planning, Scarborough District, for further review with consideration being given to all potential options related to the best use of this site including, but not limited to, a possible land exchange.

3. City Council approve $2,130,000 in additional financial assistance under the City's Home Ownership Assistance Program in the form of grants by way of forgivable loans from the Development Charges Reserve Fund (2009) for Subsidized Housing (XR2116) for the following not-for-profit affordable home ownership initiatives selected through Request for Proposal No. 9155-13-7046 and approved by Council in 2013 up to the following amounts, as amended by Recommendation 2, above:

Proponent	Address	Number of Units	Previously Approved HOAP Funding	Additional HOAP Funding	Total HOAP Funding
Habitat for Humanity Toronto Inc.	Brimley Road between Lawrence Ave. E. & Britwell Ave.	15	$225,000	$150,000	$375,000
Habitat for Humanity Toronto Inc.	357 Birchmount Rd.	9	$135,000	$90,000 (recommended for deferral in Recommendation 2)	$225,000
Home Ownership Alternatives Non-Profit Corporation (Greater Toronto Area)	1340-1360 Danforth Rd.	171	$2,565,000	$1,710,000	$4,275,000
Toronto Artscape Inc.	210 Simcoe Ave.	4	$60,000	$40,000	$100,000
Toronto Artscape Inc.	155-163 Dundas St. E.	14	$210,000	$140,000	$350,000
	Totals:	213	$3,195,000	$2,130,000	$5,325,000

The Affordable Housing Committee requested:

1. The Director, Affordable Housing Office to report to the Affordable Housing Committee on results of the next Request for Proposals under the Home Ownership Assistance Program in 2015.

The City of Toronto provides funding under the Home Ownership Assistance Program (HOAP) to eligible non-profit housing providers to reduce the upfront costs of building new affordable ownership homes for Toronto residents. The funds, delivered through a competitive request for proposals process, help offset City fees and charges and pre-construction costs. The savings are then passed onto the eligible home purchasers in the form of forgivable down payment assistance loans.

Under the City's new Development Charges By-law, on average development charge rates will increase by approximately $10,000 per unit over two years. Planning and building permit fees are also gradually increasing. This report recommends HOAP funding be increased by $10,000 per unit to off-set these rising costs.

HOAP funding is currently $15,000 per unit and would rise to $25,000. The increase would apply to previously-approved developments that have yet to pay their fees and charges, and to future Council-approved non-profit affordable ownership developments.

When the HOAP was established in 2010, Council approved up to $2.0 million annually in funding from the Development Charge Reserve Fund (2009) for Subsidized Housing (XR2116). The increase of $10,000 per unit will be drawn from this annual allocation. There are no additional funds required to support the recommendations in this report, but there will be fewer loans available due to the higher loan amount.

Since 2010, the HOAP has made over $8.425 million available to reduce costs for 690 non-profit affordable home ownership homes for eligible Toronto families and individuals.

This report recommends increasing City support to non-profit housing proponents from $15,000 to $25,000 average funding per unit to create affordable home ownership opportunities through the Home Ownership Assistance Program.

The uncommitted balance in the Development Charge Reserve Fund (XR2116) is sufficient to support the recommendations included in the report. The sufficiency of the reserve is reviewed annually as part of the City's operating budget process.

No additional funds are required for this change as Council has previously approved $2.0 million per year for the HOAP from the Development Charge Reserve Fund (2009) for Subsidized Housing (XR2116). Two years of funding have typically been bundled for each proposal call and currently both 2013 and 2014 allocations are available totaling $4 million.

The adjustments to fund the forgivable loans will be made to the annual Operating Budget for Shelter Support and Housing Administration, once the cash flows for the housing providers have been determined.

The Deputy City Manager and Chief Financial Officer has reviewed this report and agrees with the financial impact information.

Meeting No.	8	Contact	Jennifer Forkes, Committee Administrator
Meeting Date	Thursday, May 15, 2014	Phone	416-392-4666
Start Time	2:00 PM	E-mail	ah@toronto.ca
Location	Committee Room 1, City Hall	Chair	Councillor Ana Bailão