TABLE OF CONTENTS

REPORTS OF THE STANDING COMMITTEES

AND OTHER COMMITTEES

 As Considered by

The Council of the City of Toronto

on December 16 and 17, 1998

COMMUNITY AND NEIGHBOURHOOD SERVICES COMMITTEE

REPORT No. 12

1Payment of Former City of Toronto Daycare Grants

2Update on Municipal Spending for Provision ofBenefits to Non-Social Assistance Recipients

3Amalgamation of the City of Toronto Non-ProfitHousing Corporation and The Metropolitan TorontoHousing Company Limited Under the Name of"Toronto Housing Company Inc."

4Reform of Social Housing Program -Final Report of the Social Housing Committee

5Increase in Mortgage Insurance Premiumsfor Existing Rental Housing

6Appointment to the Advisory Committee onHomeless and Socially-Isolated Persons

7Health and Safety Allocations for Hostels

8Children and Youth Action Committee -Changes to Membership and Quorum

9Children and Youth Action Committee -Request for Funds for Toronto Public Library Initiative

10Other Items Considered by the Committee

City of Toronto

REPORT No. 12

OF THE COMMUNITY AND NEIGHBOURHOOD SERVICES

COMMITTEE

(from its meeting on December 3, 1998,

submitted by Councillor Chris Korwin-Kuczynski, Chair)

As Considered by

The Council of the City of Toronto

on December 16 and 17, 1998

  1

Payment of Former City of Toronto Daycare Grants

(City Council on December 16 and 17, 1998, adopted this Clause, without amendment.)

The Community and Neighbourhood Services Committee recommends that the child care centres referred to in Appendix 1 receive Daycare Grants at their 1997 level, on a one-time basis only, up to an accumulated amount of $750,920.00.

The Community and Neighbourhood Services Committee reports, for the information of Council, having requested the Commissioner of Community and Neighbourhood Services to report to the Community and Neighbourhood Services Committee on how the changes to the formula might affect the daycare grants in the future.

The Community and Neighbourhood Services Committee submits the following report (December 1, 1998) from the Commissioner of Community and Neighbourhood Services:

Purpose:

This report recommends payment of the former City of Toronto Daycare Grants to child care programs which meet the original grant criteria. The implications of adhering to the original grant criteria are identified in the report and the development of a strategy for the future disposition of the grant funds is recommended.

Funding Sources, Financial Implications and Impact Statement:

As part of amalgamation, the former City of Toronto Daycare Grant Program was transferred to the Children's Services Division of the Community and Neighbourhood Services Department. The recommendations contained in this report can be financed from funds approved for this purpose in the 1998 Children's Services budget.

Recommendations:

It is recommended that:

(1)a total payment of $556,946.00 from the former City of Toronto Daycare Grant funds be made immediately to 87 of the 99 child care centres considered for funding in the amounts identified in Appendix I of this report;

(2) the Daycare Grant Program be reviewed in 1999 with the intent of streamlining and harmonizing how child care centres are funded and the Department recommend funding strategy changes to Council early in 1999; and

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

Council Reference/Background/History:

Funding for licensed child care centres comes from a variety of sources both public and private. Over the past 15 years a very complicated mix of provincial grants (wage subsidy program), cost-shared fee subsidies, and parent fees has evolved. Through purchase of service agreements, this municipality provides funding to child care programs on behalf of families eligible for subsidized child care. These fee subsidy costs are shared with the Province of Ontario on an 80:20 basis. The City calculates the per diem rates it will pay to child care operators by reviewing their operating costs net of any grants they receive directly. Many child care centres currently receive direct grants from the Ministry of Community and Social Services who introduced its wage subsidy program in 1987. Provincial wage subsidies may fund up to one-third of the salaries of child care centre employees. However, the funding of the provincial wage subsidy program is capped and has not kept pace with ensuing growth in the child care system. This has resulted in an uneven distribution of these direct provincial grants. Where programs have received these direct grants, their per diem rates for subsidy purposes have been adjusted to prevent double funding.

The former City of Toronto introduced its Daycare Grant Program in 1983 to provide stability to the non-profit child care sector, to address the low salaries of child care staff and to address the affordability issues faced by families. Under the criteria established by the former City of Toronto Council, grants were payable to non-profit centres whose maximum average non-supervisory salary was $32,500.00 This level was established through comparison with salaries paid to staff in the child care programs directly operated by the former Municipality of Metropolitan Toronto.

Toronto Council, at its meeting of February 4, 5 and 6, 1998, in consideration of the administration of municipal grants, approved using the same criteria for determining eligibility in 1998 as were used in 1997. Therefore, applications were sent to all of the programs that had received funding in 1997 under the Daycare Grant Program and the submissions received were reviewed against the original grant criteria.

Comments and/or Discussion and/or Justification:

A total of 99 applications for the Daycares Grants were received and reviewed. As shown in Appendix I to this report, 64 centres remained eligible for the same level of grant as in 1997, 23 centres were found eligible but for a reduced level of grant and 12 centres were found to be no longer eligible. Based on the existing grant criteria, the Department has determined that payments totalling $556,946.00 should be made. In general, the change in eligibility may be accounted for by the impact of pay equity adjustments since the last full assessment. Centres were last assessed by the former City of Toronto against 1996 data. It was on this basis that both the 1996 and 1997 grants were awarded. Since then, many centres have implemented pay equity adjustments which take them above the average salary ceiling.

While there are sufficient grant dollars in the Daycare Grant Program to pay all 99 centres last year's level of grant, this would not be consistent with Council's direction to make payment based on the existing grant criteria. The Department recognizes that centres found to be ineligible will be given very little notice that their grant status is changing. Therefore, strategies to maintain centre revenue by converting grant dollars to fee subsidy payments were tried without success. The strategy did not work for centres without a purchase of service contract or for centres whose fees to the public were too low. The only remaining remedy for these ineligible centres would be a reversal of the original Council direction to make payment based on the existing grant criteria. This would likely occasion an adverse reaction from child care centres across the new City not eligible for Daycare Grant consideration at all. The staff in many of these centres have salaries well below the $32,500.00 benchmark used to guide the daycare grant decisions.

The Department recognizes the need to review and revise the Daycare Grant Program to ensure a more equitable, effective and efficient use of the funds available and recommends that such a review be undertaken early in 1999 with a view to streamlining and harmonizing the funding available to child care centres across the new City. Following this review, which will include an analysis of the financial impact on programs currently in receipt of this Daycare Grant, the Department will make recommendations to Council on future revisions needed.

Conclusions:

In keeping with Council's direction to make payment of the Daycare Grant to non-profit child care centres in the former City of Toronto who qualify under the original grant criteria, the Department recommends Daycare Grant payments totalling $556,946.00 to the 87 centres found eligible be made in the amounts specified in Appendix I of this report. The Department also suggests that a review of the future use of these grant funds be undertaken early in 1999 and recommended changes be reported to Council.

Contact Name:

Brenda Patterson, Director, Contract and Quality Compliance

Children's Services Division;

Tel: 392-3319

Appendix 1

 --------

The following persons appeared before the Community and Neighbourhood Services Committee in connection with the foregoing matter:

-Ms. Elaine Levy, WoodGreen Community Centre; and submitted a brief in regard thereto;

-Ms. Grace St. John, Bowmore Road Community Day Care;

-Ms. June Hall, Main Square Day Care Centre;

-Ms. Beryl Espley, Supervisor, Matthew John Day Care Centre;

-Ms. Becky Thompson, Boulton Avenue Child Care;

-Ms. Cheryl Degras, Pat Shultz Child Care Centre;

-Ms. Jennine Manning, Garrison Creek Community Daycare;

-Ms. Pat Costello, Childspace Daycare Corporation;

-Ms. Cheryl MacDonald, Toronto Coalition for Better Child Care;

-Ms. Catherine Schulz, Canadian Union of Public Employees, Local 2484; and

-Ms. Lianie Morano, Wychwood Tigers Daycare.

(Councillor Fotinos, at the meeting of City Council on December 16 and 17, 1998, declared his interest in the foregoing Clause, in that his mother provides private home child care.)

(Councillor Pantalone, at the meeting of City Council on December 16 and 17, 1998, declared his interest in the foregoing Clause, in that his children are registered in a child care centre which has a purchase of service agreement with the City of Toronto.)

 2

Update on Municipal Spending for Provision of

Benefits to Non-Social Assistance Recipients

(City Council on December 16 and 17, 1998, amended this Clause by:

(a)deleting Recommendation No. (1) embodied in the report dated October 19, 1998, from the Commissioner of Community and Neighbourhood Services, and inserting in lieu thereof the following:

"(1)the City continue to protect the municipal portion of benefits to be provided to non-social assistance recipients for extreme hardship cases by establishing a reserve fund;

(2)the Commissioner of Community and Neighbourhood Services be requested to develop guidelines for access to this fund and submit a report thereon to the Community and Neighbourhood Services Committee; and

(3)the funds be used to extend low-interest, or no-interest loans for funeral costs;",

and renumbering the remaining recommendations accordingly; and

(2)adding thereto the following:

"It is further recommended that City Council continue to press the Ministry of Health for a share of the funding of health-related Special Assistance and Supplementary Aid for low income earners and persons on fixed incomes.")

The Community and Neighbourhood Services Committee recommends the adoption of the report dated October 19, 1998, from the Commissioner of Community and Neighbourhood Services.

The Community and Neighbourhood Services Committee reports, for the information of Council, having requested Mayor Mel Lastman and the Chair of the Community and Neighbourhood Services Committee to follow up, by telephone, the outcome of the issues raised in their previous communication to the Minister of Community and Social Services and Minister of Health regarding Special Assistance and Supplementary Aid, and to report thereon directly to Council for its meeting on December 16, 1998.

The Community and Neighbourhood Services Committee submits the following report (October 19, 1998) from the Commissioner of Community and Neighbourhood Services:

Purpose:

The purpose of this report is to update the Committee on the continuation of benefits for non-social assistance recipients, and the financial implications thereof.

Financial Implications:

The Department estimates that the cost to Toronto of replacing benefits previously available to non-social assistance recipients under Special Assistance and Supplementary Aid will be approximately $1.526 million at 100 percent municipal cost-sharing for the period May to December 1998. Based on 1998 expenditures, the projected 1999 costs will be $1.964 million.

Recommendations:

It is recommended that:

(1)in accordance with the new Ontario Works regulations, the Municipality discontinue the provision of benefits under Special Assistance and Supplementary Aid to non-social assistance recipients;

(2)City Council continue to advocate to the Province that the Assistive Devices Program be modified to cover the full costs of medical items formerly covered through Special Assistance and Supplementary Aid; and

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

With the introduction of the new Provincial Ontario Works Act (O.W.A.) regulations, effective May 1, 1998, benefits available through Special Assistance and Supplementary Aid to non-social assistance recipients were eliminated. At its July 16, 1998, meeting, Council agreed to provide 100 percent municipal funding for such benefits until the end of 1998.

This report will identify the projected financial implications of continuing benefits to non-social assistance recipients from May 1, 1998 to December 31, 1998. Subsequently, the report will briefly discuss the concerns related to the continuation of 100 percent municipal funding for these benefits. The implications for people no longer eligible for benefits will also be noted.

Under the former General Welfare Assistance (G.W.A.) Act, low-income earners, through Special Assistance, and recipients of other government programs (Canada Pension Plan, Old Age Security/Guaranteed Income Supplement), through Supplementary Aid, could access specific benefits although they were ineligible for G.W.A. Both programs were cost-shared by the Province and municipalities at the following ratios: Special Assistance 50:50; Supplementary Aid 80:20. Under the new O.W.A. regulations however, Special Assistance and Supplementary Aid benefits are no longer available to these groups.

Benefits provided through Special Assistance and Supplementary Aid included:

(a)coverage of 100 percent of the cost of approved prescription drugs and drug products for low-income earners with high drug costs;

(b)a range of medically based items (hearing aids, prosthetics, wheelchairs and repairs, respiratory equipment and ambulatory aids);

(c)dental and denture needs;

(d)eyeglasses; and

(e)funeral costs (which were cost-shared on an 80 Provincial:20 Municipal basis under Special Assistance).

Discussion:

Projected Financial Implications:

Since May 1, 1998, the City of Toronto has continued to provide specific benefits to social assistance recipients who are no longer eligible for assistance as a result of the new Ontario Works Act regulations.

Based on expenses incurred since the beginning of May 1998, the following are projected costs to the Municipality of continuing the provision of benefits until December 31, 1998:

(a)Medically based items

(including glasses and dentures): $ 493,100.00;

(b)Dental:$ 2,400.00; and

(c)Funerals: $1,380,000.00 gross;

$ 486,000.00 recoveries from estates;

$ 894,600.00 net.

Therefore, the projected actual budget for 1998, funded 100 percent by the Municipality, is $1,526,000.00.

Concerns Related to Continuing Coverage of Benefits:

As outlined in the July 6, 1998, report to Council on this issue, there exist a number of key concerns if the City of Toronto continues to fund benefits to non-social assistance recipients at 100 percent:

(a)a primary purpose of Provincial reform has been to disentangle and streamline the new welfare program by serving disabled people and low-income families outside of O.W. Continued funding of benefits to low-income families will clearly re-entangle the O.W. program within the City;

(b)100 percent funding of benefits provided under an income redistribution program, such as social assistance, is inappropriate on the property tax base; and

(c)100 percent funding by the City is also inappropriate given that the municipal portion of social assistance costs, including administration, are now shared on a pooled basis across the Greater Toronto Area (G.T.A.).

For these reasons, the Department recommends that the City no longer provide benefits to non-social assistance recipients. Given the elimination of Special Assistance and Supplementary Aid under the new Ontario Works regulations, the City currently has no mandate to provide such benefits through the Ontario Works program. Continuation of benefits would also, in effect, represent a further downloading of Provincial costs onto the Municipality.

Conclusion:

In previous reports to City Council, the Department has noted the possible hardship low-income earners and people on fixed incomes may face resulting from the Provincial elimination of Special Assistance and Supplementary Aid. Provincial officials indicated that the intention was to serve low-income families outside of the Ontario Works program, through existing programs such as the Assistive Devices Program and the Trillium Drug Plan, and through new initiatives such as the National Child Benefit Supplement.

There is a concern that there will be cases in which individuals who are not now social assistance recipients may be forced to give up their employment so they can apply to Ontario Works to retain benefits they previously received. However, given the changes enacted under the new Ontario Works regulations, municipal delivery agents currently have no mandate to provide Special Assistance and Supplementary Aid benefits to non-social assistance recipients. Continuation of benefits would effectively represent a downloading of Provincial costs onto municipalities. For these reasons, the Department recommends that the City no longer provide benefits to non-social assistance recipients.

However, further discussions should be pursued with Provincial officials to seek appropriate authority and cost-sharing under Ontario Works to reduce impacts on vulnerable City residents that have been affected by the regulatory changes.

Contact Name:

Heather MacVicar

Tel: 392-8952

(City Council on December 16 and 17, 1998, had before it, during consideration of the foregoing Clause, the following report (December 14, 1998) from the City Solicitor:

Purpose:

This report responds to the request of the Community and Neighbourhood Services Committee for a legal opinion regarding the creation of a City of Toronto child income program.

Funding Sources, Financial Implications and Impact Statement:

None.

Recommendation:

It is recommended that this report be received for information.

Council Reference/Background/History:

At its meeting of December 3, 1998, the Community and Neighbourhood Services Committee had before it a report from the Commissioner of Community and Neighbourhood Services entitled "National Child Benefit Supplement Reinvestment Plan" in which the Commissioner made various recommendations regarding the options available for the reinvestment of municipal social assistance savings resulting from the implementation of the National Child Benefit Supplement. In considering this report, the Committee requested an opinion from the City Solicitor on the City's proposed strategy with respect to the National Child Benefit Supplement, in order to determine whether the City is able to develop its own child income program.

Comments and/or Discussion and/or Justification:

A Toronto child income program could be established pursuant to Section 53 of the City of Toronto Act, 1997 (No. 2) which enables Council to pass by-laws to provide money for the health and welfare of the resident poor who are not otherwise specifically provided for in the Act. However, it is unlikely that such a program would improve the financial situation in which social assistance recipients find themselves for the reasons set out below.

Under Section 48 of Regulation 134/98 under the Ontario Works Act, "income" is defined as "the total amount of all payments of any nature paid to or on behalf of or for the benefit of every member of the benefit unit". Given the broad nature of this definition, a Toronto child benefit payment would likely be "income" for the purpose of calculating the amount of a benefit unit's entitlement.

The income provisions in Regulation 134/98 are mandatory and accordingly a municipal social assistance administrator has no discretion to exclude a payment from being considered "income" unless the payment falls within the scope of a specific enumerated exemption. Having reviewed the exemptions set out in Regulation 134/98, it is my opinion that none of the exemptions would apply to payments under the proposed child income program. In particular, I do not believe such payments could be exempted under paragraph 8 of ss. 54(1) of Regulation 134/98 as a "casual gift or casual payment of small value" as the payment would be made on a regular basis to eligible recipients. As a result, the amount of the child income benefit would have to be deducted from the benefit unit's entitlement and there would be no net increase in the amount paid to the benefit unit.

Conclusions:

The foregoing is provided for the information of City Council.

Contact Name:

Shirley Mathi 392-2989)

(City Council also had before it, during consideration of the foregoing Clause, a communication (December 15, 1998) from Mr. Duncan P. Read, LL.B., President, Ontario March of Dimes, in opposition to the elimination of the special needs program for everyone except social assistance recipients.)

3

Amalgamation of the City of Toronto Non-Profit

Housing Corporation and The Metropolitan Toronto

Housing Company Limited Under the Name of

"Toronto Housing Company Inc."

(City Council on December 16 and 17, 1998, amended this Clause by:

(1)deleting from Recommendation No. (2) of the Community and Neighbourhood Services Committee the words "the tenant and", so that such recommendation shall now read as follows:

"(2)citizen appointments being processed through the City's Nominating Committee, with input from the Board of Directors, and the Members of Council being recommended by the Striking Committee, with all appointments being recommended to Council no later than its March 2, 1999, meeting;"; and

(2)adding thereto the following:

"It is further recommended that:

(a)the Commissioner of Community and Neighbourhood Services be requested to develop a list of appropriate criteria to assist the Nominating Committee with its recommendations for the five citizen appointees to the Board of Directors of the Toronto Housing Company Inc.;

(b)the advertisement for the citizen positions on the Board of Directors of the Toronto Housing Company Inc. be posted in each of the Housing Company's buildings; and

(c)the Chief Operating Officer of the Toronto Housing Company Inc. and the tenant organizations within the Housing Company, be requested to develop and implement a plan that would provide for the democratic selection of the tenant representatives to sit on the Board of Directors from amongst the tenants of the Company.")

The Community and Neighbourhood Services Committee recommends the adoption of the following report (November 23, 1998) from the Chief Operating Officer, subject to:

(1)amending the composition of the Board of Directors of the Toronto Housing Company Inc., as follows:

-3 tenants;

-3 Members of Council; and

-5 citizens;

(2)the tenant and citizen appointments being processed through the City's Nominating Committee, with input from the Board of Directors, and the Members of Council being recommended by the Striking Committee, with all appointments being recommended to Council no later than its March 2, 1999, meeting;

(3)amending the Memorandum of Agreement to include the establishment of safeguards to ensure that all sales of property are approved by City Council;

and further that all supporting documentation be amended to give effect thereto:

Purpose:

To seek the approval of the City of Toronto, as the sole shareholder of the two housing companies, for the amalgamation of the City of Toronto Non-Profit Housing Corporation (Cityhome) and The Metropolitan Toronto Housing Company Limited (MTHCL) under the name of Toronto Housing Company Inc. as of January 1, 1999, and to seek approval for a shareholder Memorandum of Agreement defining the relationship of the amalgamated company to the City.

Financial Implications:

No financial implications are involved.

Recommendations:

It is recommended that:

(1)as the governing body of the sole shareholder of both The City of Toronto Non-Profit Housing Corporation (Cityhome) and The Metropolitan Toronto Housing Company Limited (MTHCL), Council approve, by way of special resolution, the agreement providing for the amalgamation of the two companies under the name of "Toronto Housing Company Inc." ("THC") as of January 1, 1999, in accordance with the Amalgamation Agreement constituting Attachment I to the report dated November 13, 1998, from the Chief Operating Officer of the housing companies to the Boards of Directors thereof, subject to the concurrence of Canada Mortgage and Housing Corporation and the Ministry of Municipal Affairs and Housing;

(2)authority be granted to enter into a Memorandum of Agreement between the City and the new housing company following amalgamation, in the form set forth as Attachment II of the Chief Operating Officer's said report;

(3)City officials be directed to work with the Chief Operating Officer to prepare a Memorandum of Understanding, defining the working relationship between THC staff and City staff, as well as purchase-of-service arrangements between City departments and THC;

(4)the City be authorized to accept the transfer to it of the single share in the amalgamated corporation arising from the conversion of the issued and outstanding shares of Cityhome and MTHCL under the Amalgamation Agreement; and

(5)the appropriate City officials be authorized to take the necessary steps to give effect to Recommendations Nos. (1) to (4).

Council Reference/Background:

The Boards of Directors and staff of Cityhome and MTHCL have been planning for the amalgamation of the two City-owned housing companies since May of this year. An amalgamation target date of January 1, 1999, was established to harmonize with the year-end of the two existing companies.

The Chief Operating Officer of the housing companies submitted a report (November 16, 1998) to the Boards of Directors recommending that the name of the amalgamated company be "Toronto Housing Company".

The Chief Operating Officer of the housing companies submitted a report (November 13, 1998) to the Boards of Directors respecting the amalgamation and annexing a draft of the Amalgamation Agreement required to give effect to the amalgamation, including the new Companys by-laws, and a draft Shareholder Agreement between the amalgamated company and the City as its sole shareholder defining their relationship.

The Boards considered both reports at their meetings of November 23, 1998, and at that time:

(i)adopted the recommended name, subject to adding "Inc." at the end thereof;

(ii)authorized the Amalgamation Agreement in a form reflecting the name for the amalgamated company, its registered office and various changes in wording; and

(iii)approved, in principle, the Shareholder Agreement in a form reflecting the chosen name, subject to renaming it a "Memorandum of Agreement".

A copy of the Chief Operating Officers report of November 13, 1998, is annexed, including as AttachmentI the revised Amalgamation Agreement and as Attachment II the revised Memorandum of Agreement.

Discussion:

Composition of the Toronto Housing Company Board of Directors:

The by-laws of THC, whose elements are essentially drawn from those of MTHCL and Cityhome, contemplate an eventual 15-member Board of Directors composed of:

(a)residential tenants of the Company constituting one-third of the Board (i.e., 5 members), nominated by the tenants through a democratic process determined by them;

(b)3 City Councillors;

(c)1 representative nominated by the Ontario Non-Profit Housing Association;

(d)1 representative nominated by the Greater Toronto Apartment Association; and

(e)5 citizens with housing expertise.

A three-year term of office is proposed for the Directors, with an initial one-year term for the 5 tenant representatives, an initial two-year term for the 3 Councillors and an initial three-year term for the remaining citizen appointees. In this way, only a part of the Board will turn over in any given year.

This size and composition is intended to balance the interests of the various stakeowners and allow for the effective management of the new company.

It is important to note that the initial directors for THC will be those nine individuals who are currently serving on the interim Boards of both MTHCL and Cityhome. It is intended, however, that the process for recruiting the new 15-member Board of Directors begin as soon as Council has approved its proposed composition.

Memorandum of Agreement with the Shareholder:

THC will be incorporated under the Ontario Business Corporations Act (OBCA). The City will be the sole shareholder. Under the OBCA, the Board of Directors of THC will be required to oversee and manage the affairs of the Company. Senior staff of THC will be accountable to that Board and take direction from it in all matters related to the operation of the Company. Generally, the Board will operate at arms length from the City. The Memorandum of Agreement between the City and THC will provide its Board with shareholder direction.

The proposed Memorandum of Agreement with the shareholder sets out THC's mandate, the reporting relationship with the City and other expectations that the City has which are considered additional to those that a shareholder usually has of a wholly-owned company. For example, the Memorandum sets forth the City policies which THC will be subject to in its operations.

(Report dated November 13, 1998,

addressed to the Boards of Directors,

The City of Toronto Non-Profit Housing Corporation and

The Metropolitan Toronto Housing Company Limited,

from the Chief Operating Officer)

Recommendations:

It is recommended that the Board of Directors:

(1)approve the proposed Amalgamation Agreement between the City of Toronto Non-Profit Housing Corporation (Cityhome) and The Metropolitan Toronto Housing Company Limited (MTHCL), including by-laws for the amalgamated company, provided as Attachment I of this report;

(2)approve, in principle, the proposed Shareholder Agreement between the new housing company and its sole shareholder, the City of Toronto, provided as Attachment II of this report;

(3)direct Cityhome and MTHCL staff to work with City officials to prepare a Memorandum of Understanding, defining the working relationship between amalgamated company staff and City staff; and

(4)direct Cityhome and MTHCL staff to forward the approved Amalgamation Agreement and Shareholder Agreement to the City Council for City authority to execute both agreements.

Background:

The legal amalgamation of Cityhome and MTHCL is scheduled for January 1, 1999. In order for this amalgamation to take effect, an Amalgamation Agreement between the two companies is required, and this Amalgamation Agreement must be approved by Toronto City Council, the governing body of the City, as sole shareholder of both companies. Review of the documents by the Ministry of Municipal Affairs and Housing will also be required to ensure that the new company complies with provincial requirements in accordance with the Housing Development Act.

Once all the necessary approvals have been obtained, Articles of Amalgamation must be prepared and submitted to the Ministry of Consumer and Commercial Relations for certification, prior to the January 1, 1999, effective date of the amalgamation. A copy of the proposed Amalgamation Agreement is provided as Attachment I of this report.

A Shareholder Agreement has been prepared to define the formal terms and conditions of the corporate relationship between the new housing company and its shareholder, the City of Toronto. The proposed Shareholder Agreement is provided as Attachment II of this report. When the amalgamated company is legally in existence, and once City Council has approved the terms of the proposed Agreement, formal Board approval will be required. At this stage, approval in principle is sought from the amalgamating Boards so that the document can be forwarded to City Council.

It is intended that a Memorandum of Understanding (MOU) be developed to describe the working relationships between senior executives of the new housing company and administrative staff of the City. This MOU is to supplement the conditions provided by the Shareholder Agreement, and should not conflict with it or any other requirements of the new company's articles or by-laws, or applicable statutes.

Discussion:

The Amalgamation Agreement (and By-laws):

The Amalgamation Agreement, made between the two corporations to be amalgamated, describes the two companies and lays out the basic terms of their amalgamation. It also includes the by-laws for the new company.

The by-laws, presented as an appendix to the Amalgamation Agreement, reflect a combination of the by-laws of the two amalgamating companies. Wherever possible, efforts have been made to streamline and simplify them.

The name of the new company, once it has been selected and approved by the Board, must be included, as well as the registered address, as soon as it is determined.

Composition of the Board:

A permanent Board of Directors comprised of 15 members is recommended. The Agreement stipulates that the Board of Directors can range in size from 9 to 15 members and identifies the current 9 Directors as the first directors of the amalgamated corporation. This approach allows sufficient time for the recruitment of the 15 member Board, with a minimum of administrative inconvenience.

The proposed Board composition is: five tenants (one-third of the Board), three City Councillors, one representative nominated by the Ontario Non-Profit Housing Association, one representative nominated by the Urban Development Institute (or a related organization representing the private sector property management industry in the Toronto area), and five community members with housing expertise. To develop criteria for citizen appointments and advise the shareholder in this regard, a Nominating Committee of the Board is provided for in By-law No. 4.

By-law No. 1 stipulates rotating three-year terms for Directors in order to ensure some continuity and avoid complete turnover of the Board every three years. The following initial appointment system is recommended.

Tenant Positions:

Tenants are currently involved in a process to develop a new tenant participation system. This process is not expected to be complete until at least June 1999. The tenant participation system will include a process for filling the tenant positions on the Board. Once the new tenant participation system is in place, that system will be used to fill the tenant positions for a three-year term. In the interim, the tenant positions would be filled for a one-year term, on a "placeholder" basis, as recommended by the tenants.

Council Positions:

The next municipal election will take place in November 2000, leaving only two years in the term of the current Council. It is therefore recommended that the first Councillors appointed to the new Board serve for two years, to coincide with the term of Council. Future terms of office would be for three years.

Other Positions:

As tenant and Councillor positions will initially be filled on a one and two-year basis respectively, it is recommended that the citizen and institutional appointments be for a three-year term.

Titles of Officers of the Board:

No changes are proposed to the titles of the officers of the corporation with the exception of the Chief Operating Officer. A change to Chief Executive Officer, in place of Chief Operating Officer, has been incorporated into the by-laws. This title change reflects proposed changes in the organization structure and is in keeping with titles used by other arms-length corporations of the City.

The Shareholder Agreement:

The City of Toronto, as the sole shareholder of the new housing company will have the right to impose controls on the corporation and its Board of Directors. In the normal course of events, however, it is anticipated that the Board will supervise and control the business affairs of the company, while keeping in mind the interests of the shareholder.

It is therefore considered useful for the shareholder to set out clear direction for the Board and define the relationship between the City and the new housing company. The Agreement, contained in Appendix II of this report, has been prepared for this purpose. It is intended to allow the company to operate at "arms length", although within guidelines which clearly spell out its relationship to the City. With such an agreement in place, the Board can be clear about its mandate and attend to managing the business affairs of the company.

The Memorandum of Understanding:

Cityhome and MTHCL staff have always worked closely with staff of their respective municipalities. However, in the context of a new relationship between the amalgamated housing company and the City, as defined in the Shareholder Agreement, a clear articulation of staff working relationships will be helpful. A Memorandum of Understanding is proposed for this purpose, focusing on issues such as: the application of City human resource policies to the new housing company; how the company will be involved in the City's collective bargaining process where company employees are involved; company use of City administrative services; and so forth. It is recommended that staff be directed to begin the process of developing such an agreement.

Conclusion:

Although staff of Cityhome and MTHCL have been working together for the better part of a year, a formal amalgamation is dependent on an Amalgamation Agreement to be approved by the Board and City Council, as the governing body of the shareholder.

As the new housing company begins to operate as a business corporation, although one owned by the City, it will be important to define its relationship with the City. A Shareholder Agreement and a Memorandum of Understanding are proposed for this purpose.

--------

  Attachment I

THIS AMALGAMATION AGREEMENT made in quadruplicate this 23^rd day of November, 1998,

BETWEEN:

THE METROPOLITAN TORONTO HOUSING COMPANY LIMITED,

a corporation incorporated under the laws of the

Province of Ontario

hereinafter called "the Housing Company"

OF THE FIRST PART

- and -

CITY OF TORONTO NON-PROFIT HOUSING CORPORATION,

a Corporation incorporated under the laws of the

Province of Ontario

hereinafter called "Cityhome"

OF THE SECOND PART

WITNESSES THAT:

WHEREAS the Housing Company is an amalgamated corporation by virtue of Articles of Amalgamation certified effective under the Business Corporations Act the 15^th day of September, 1993, which Articles have been amended by Articles of Amendment dated the 1^st day of April, 1998;

WHEREAS Cityhome was incorporated under a predecessor of the Business Corporations Act by Articles of Incorporation certified effective the 8^th day of July, 1974, which Articles have been amended by Articles of Amendment dated respectively the 19^th day of October, 1981, the 29^th day of September, 1982, the 12^th day of August, 1986, the 13^th day of August, 1990, the 21^st day of August, 1992, the 3^rd day of June, 1994 and the 1^st day of April, 1998;

WHEREAS the authorized capital of the Housing Company consists of 1 common share, which has been issued and is outstanding as fully paid and non-assessable;

WHEREAS the authorized capital of Cityhome consists of 2 common shares which have been issued and are outstanding as fully paid and non-assessable;

WHEREAS the Housing Company and Cityhome, acting under the authority contained in the said Act, have agreed to amalgamate upon terms and conditions hereinafter set out;

AND WHEREAS each party has made full disclosure to the other of all its assets and liabilities;

IN CONSIDERATION OF the mutual covenants herein contained, the parties hereto hereby agree as follows:

1.In this Agreement

(a)"Act" means the Business Corporations Act;

(b)"Amalgamated Corporation" means the corporation resulting from the amalgamation of the Housing Company and Cityhome;

(c)"City" means the City of Toronto incorporated by the City of Toronto Act, 1997.

2.The Housing Company and Cityhome shall amalgamate, as of the close of business on December 31, 1998, under the provisions of section 176 of the Act, and shall continue as one corporation under the terms and conditions hereinafter set out.

3.The name of the Amalgamated Corporation shall be "Toronto Housing Company Inc.".

4.The registered office of the Amalgamated Corporation shall be situate at 100 Queen Street West, TORONTO, Ontario M5H 2N2, until changed in accordance with the Act.

5.(1)The Amalgamated Corporation shall be authorized to issue One (1) common share.

(2)The rights, privileges, restrictions and conditions attaching to the share of the Amalgamated Corporation (referred in this subarticle (2) as "the Corporation") are as follows:

(a)the directors of the Corporation shall not declare, and the Corporation shall not pay, any dividend on any issued share of the Corporation;

(b)no part of the income of the Corporation shall be payable to or otherwise available for the personal benefit of any shareholder of the Corporation.

(3)The issue, transfer and ownership of shares in the Amalgamated Corporation shall be restricted in that no such share shall at any time be allotted, issued or transferred to, or owned by, any person other than the City.

(4)The issued and outstanding shares of the Housing Company and Cityhome shall be converted into a single issued and fully paid share of the Amalgamated Corporation as follows:

(a)the single issued and outstanding share of the Housing Company shall be converted into Three Quarters (¾) of an issued and fully paid share of the Amalgamated Corporation;

(b)the two issued and outstanding shares of Cityhome shall collectively be converted into One Quarter (¼) of an issued and fully paid share of the Amalgamated Corporation.

(5)Following the amalgamation of the Housing Company and Cityhome, and the surrender by the City to the Amalgamated Corporation of the City's share certificates representing its shares in the Housing Company and Cityhome, the Amalgamated Corporation shall without charge provide to the City a certificate for One (1) share of the Amalgamated Corporation.

6.(1)The business of the Amalgamated Corporation shall be restricted to the provision and operation of housing accommodation in accordance with the Housing Development Act as amended from time to time, including any successor legislation, but otherwise there shall be no restrictions on the powers that the Amalgamated Corporation may exercise.

(2)Any invitation to the public to subscribe for securities of the Amalgamated Corporation shall be prohibited.

(3)On dissolution or winding-up of the Amalgamated Corporation, any assets remaining after satisfaction of, or lawful provision for, all debts, obligations, and liabilities of the Amalgamated Corporation shall be distributed solely to the City.

(4)Without restricting the generality of its powers under the Act, the board of directors of the Amalgamated Corporation may from time to time, without authorization from its shareholder,

(a)charge, mortgage, hypothecate or pledge all or any of the currently owned or subsequently acquired real or personal, movable or immovable property of the Amalgamated Corporation, including book debts, rights, powers, franchises and undertakings to secure any debt obligations which it is by law entitled to issue or any other debt or liability of the Amalgamated Corporation in such amounts and on such terms as it deems expedient;

(b)take any steps required for the rezoning of any real property currently owned or subsequently acquired by the Amalgamated Corporation in order to facilitate or enable the sale or development thereof,

and any exercise of its powers described in this subarticle (4) shall not constitute a breach of the restrictions described in subarticle (1) hereof.

7.The by-laws of the Amalgamated Corporation shall, until and except insofar as lawfully repealed, amended, altered or added to subsequent to the date set forth in article 2 of this Agreement, be as set forth in Appendix I attached to this Agreement

8.(1)The Amalgamated Corporation shall have a minimum of Nine (9) Directors and a maximum of Fifteen (15) Directors, as determined from time to time by special resolution in accordance with the Business Corporations Act, and pending such a determination, Nine (9) Directors.

(2)The first Directors of the Amalgamated Corporation shall be the Nine (9) persons named in Appendix II attached to this Agreement.

(3)No first director of the Amalgamated Corporation named as described in subarticle (2) hereof shall be permitted to resign unless at the time the resignation is to become effective a successor has been elected or appointed.

9.Until otherwise determined by the directors of the Amalgamated Corporation its Chief Operating Officer shall be the incumbent holder of that office for both the Housing Company and Cityhome, Derek Ballantyne, and all other officers of the Amalgamated Corporation shall be determined by such directors at, or as soon as may be convenient following, their first meeting.

10.Each of the parties hereto shall contribute to the Amalgamated Corporation all of its assets, subject to its liabilities.

11.Following and subject to the approval by the City of the amalgamation of the Housing Company and Cityhome and its adoption of this Agreement, but subject always to article 12 of this Agreement, articles of amalgamation in the form prescribed under the Act shall be sent to the Director defined in the Act together with the documents required under section 178 of the Act.

12.At any time before the endorsement of a certificate of amalgamation effecting the amalgamation of the Housing Company and Cityhome, this Agreement may be terminated by the directors of either the Housing Company or Cityhome, notwithstanding the approval of this Agreement by the City.

IN WITNESS WHEREOF the parties hereto have hereunto affixed their respective corporate seals attested to by the hands of their respective proper officers in that behalf duly authorized.

SIGNED, SEALED AND DELIVERED

THE METROPOLITAN TORONTOCITY OF TORONTO NON-PROFIT

HOUSING COMPANY LIMITEDHOUSING CORPORATION

per:per:

PresidentPresident

SecretarySecretary

  Appendix I

to the Agreement dated the 23^rd day of November, 1998, between

THE METROPOLITAN TORONTO HOUSING COMPANY LIMITED

- and -

CITY OF TORONTO NON-PROFIT HOUSING CORPORATION

By-laws

By-law Number Subject Matter

1Organization of the Amalgamated Corporation

2Borrowing of Money

3Certain Financial Matters

4Procedure Relating to Meetings

5Sale of Real Property

Appendix II

to the Agreement dated the 23^rd day of November, 1998, between

THE METROPOLITAN TORONTO HOUSING COMPANY LIMITED

- and -

CITY OF TORONTO NON-PROFIT HOUSING CORPORATION

FIRST DIRECTORS

Full NameResidential Address

John Alleyne

Catherine Bertucci-Menchetti

Michael C. Feldman

Madeleine Fleming

Dr. John Metson

David Monk

Marvin Sadowski

Wayne Stickley

Michael Walker

 TORONTO HOUSING COMPANY INC.

BY-LAW NO. 1

A by-law respecting the organization of the Corporation

Section

No. SubjectPage

1.Definitions and Interpretation 1

2.Registered Office and Seal 1

3.Directors 1

4.Directors' Meetings 2

5.Officers and Personnel 2

6.Remuneration and Indemnity 5

7.Shareholder's Meetings 5

8.Shares and Transfers 5

9.Execution of Documentation 6

10.Banking and Fiscal Year 6

      TORONTO HOUSING COMPANY INC.

BY-LAW NO. 1

A by-law respecting the organization of the Corporation

BE IT EFFECTED as a By-law of the Corporation as follows:

 DEFINITIONS AND INTERPRETATION

1.(1)In this by-law, and in all other by-laws of the Corporation, unless otherwise expressly indicated or clearly required by the context,

(a)"Board of Directors" means the Corporation's Board of Directors;

(b)"Business Corporations Act" means the Business Corporations Act of the Province of Ontario and every other statute amending the same or substituted therefor;

(c)"City" means the City of Toronto incorporated by the City of Toronto Act, 1997;

(d)"Corporation" means Toronto Housing Company Inc.;

(e)"Council" means the council of the City;

(f)"Director" means a director of the Corporation.

(2)In all by-laws of the Corporation where the context so requires or permits:

(a)the singular shall include the plural and the plural the singular;

(b)the word "person" shall include firms and corporations.

REGISTERED OFFICE AND SEAL

2.(1)The registered office of the Corporation shall be at such location in the City as the Board of Directors of the Corporation may from time to time decide by resolution.

(2)The seal of the Corporation shall be in the form appearing on the margin hereof.

DIRECTORS

3.(1)The Board of Directors shall have full power and authority to manage and control the affairs and business of the Corporation.

(2) Except insofar as stipulated to the contrary in the Corporation's constating Articles as same may be amended from time to time, the Corporation shall have a minimum of Nine (9) Directors and a maximum of Fifteen (15) Directors as determined by the most recent special resolution passed by the City in that behalf in accordance with the Business Corporations Act or as determined by such provisions of that Act as may otherwise be applicable.

(3)If the number of Directors of the Corporation is Fifteen (15),

(a)Three (3) shall be Members of the Council;

(b)One-Third (1/3rd) shall be residential tenants of the Corporation nominated by those tenants in accordance with a democratic process that has been determined by those tenants;

(c)Two (2) shall have been recommended by the following bodies or agencies, as indicated:

(i)Greater Toronto Apartment Association: 1 Director;

(ii)Ontario Non-Profit Housing Association: 1 Director;

(d)Five (5) shall in each case be persons having expertise in housing, recommended by the Board of Directors in accordance with a citizen nomination process adopted by them,

at the respective times of being elected or appointed as Directors.

(4)Subject to subsections (5), (6) and (7), a Director who is appointed shall hold office until the third annual meeting of the shareholder next following such election and/or until a successor is elected or appointed.

(5)Until such time as subsection (3) becomes applicable, the Directors named in the Corporation's constating Articles of Amalgamation shall each have a term of office continuing until the annual meeting next following the amalgamation and until a successor is elected or appointed.

(6)The fifteen Directors provided for in subsection (3) at the time when that subsection first become applicable shall hold office as follows:

(a)for those appointed pursuant to clause (3)(b), for one (1) year;

(b)for those appointed pursuant to clause (3)(a), for two (2) years;

(c)for all others, for three (3) years,

and/or, in each case, until their respective successors are appointed or elected.

(7)Any Director described in

(a)clause (3)(a) who ceases to be a Member of the Council; or

(b)clause (3)(b) who ceases to be a residential tenant of the Corporation,

shall be deemed simultaneously to have submitted to the Board of Directors a resignation from office, and the term of such office shall cease on appointment or election of a successor.

(8)If a vacancy occurs in a Director's office

(a)any person appointed to fill such vacancy by the remaining Directors in exercise of their powers to do so under the Business Corporations Act shall be a member of the category among those specified in clauses (3)(a), (b) and (d) and subclauses (c)(i) and (ii) to which the person's predecessor belonged and shall hold office for the unexpired term of that predecessor;

(b)the Board of Directors shall expeditiously advise the shareholder of the details of the appointment of any person by the remaining Directors to fill such vacancy.

DIRECTORS' MEETINGS

4.The calling, place and proceedings of meetings of the Board of Directors and committees of Directors shall be in accordance with the Corporation's procedural by-law in that behalf in force from time to time.

OFFICERS AND PERSONNEL

5.(1)Each officer appointed by the Board of Directors shall, unless otherwise stipulated in this by-law or any resolution of the Board of Directors, have such powers and perform such duties as are usually imposed upon such officers of corporations and such as may be delegated to the officer by the Board of Directors or required by law.

(2)Without restricting the generality of subsection (1), the Board of Directors shall appoint from time to time

(a)a President of the Board of Directors who is a Director and who

(i)shall advise the Chief Executive Officer as to the agenda for all meetings of the Board of Directors;

(ii)consult with the Chief Executive Officer as to the time and place of all rescheduled or special meetings of the Board of Directors; and

(iii)act as chairman of all meetings of the Board of Directors;

(b)a Vice-President of the Board of Directors who is a Director and shall, in the absence of the President, carry out the duties of the President;

(c)a Chief Executive Officer of the Corporation who shall

(i)subject to the authority of the Board of Directors, be responsible for:

(A)the general day-to-day management of affairs and operations of the Corporation;

(B)the engagement, discharge and supervision of the staff of the Corporation other than those appointed by the Board of Directors, including the terms of employment and remuneration thereof; and

(ii)have the power to determine on the Corporation's behalf, in consultation with City staff, the extent of the services to be provided by the City to the Corporation, including all municipal staff to be assigned duties related to the Corporation's activities, the nature and extent of such duties and the accommodation to be provided for such purposes;

(iii)have authority:

(A)to commit the Corporation contractually, in each instance in an amount not in excess of

(I)$250,000.00, other than for consulting services;

(II)$100,000.00 for consulting services;

(B)in cases of emergency, and with the approval of the President or Vice-President, to commit the Corporation contractually in an amount in excess of the applicable amount stipulated in item (A);

(C)except where the Corporation has entered into an agreement for purchasing services with a third party, to delegate the Chief Executive Officer's purchasing and related contracting powers when deeming same advisable, to the person for the time being responsible for the purchasing and related functions for or on behalf of the City; and

(D)to write off uncollectible rents not in excess of $5,000.00 annually for any household in default, up to a total maximum of $30,000.00 in any one fiscal year, provided that such total writing-off is reported to the Board of Directors within the three months next following the end of such fiscal year;

(iv)determine, in consultation with the President, the agenda for each meeting of the Board of Directors;

(v)have the duty to make recommendations to the Board of Directors respecting emerging policy questions which require its decision and to report action taken pursuant to the Chief Executive Officer's mandate, after the event, when no new policy question has arisen;

(vi)when submitting written reports to the Board of Directors sign at the end thereof over the title "Chief Executive Officer";

(d)a Secretary of the Corporation who shall

(i)attend and ensure the proper performance of the secretarial function for all meetings of the Board of Directors;

(ii)enter or cause to be entered in records kept for that purpose minutes of all proceedings at meetings of the Board of Directors and all resolutions of the City passed as shareholder of the Corporation;

(iii)give or cause to be given, as and when instructed, all notices to the shareholder, Directors, officers, auditor and members of committees of the Board of Directors;

(iv)be the custodian of all books, papers, records, documents and instruments belonging to the Corporation and of the stamp or mechanical device generally used for affixing its corporate seal, except when some other officer or agent has been appointed for that purpose; and

(e)a Treasurer of the Corporation who shall

(i)keep proper accounting records in compliance with the Business Corporations Act;

(ii)under the direction of the Board of Directors, be responsible for

(A)the deposit of money;

(B)the safekeeping of securities; and

(C)the disbursement of the funds

of the Corporation;

(iii)render to the Board of Directors and any appropriate committee thereof, whenever required, an account of any of the transactions for which the Treasurer has been responsible under this clause (e), and of the financial position of the Corporation; and

(f)such other officers as the Board of Directors consider necessary for the conduct of the affairs of the Corporation,

in each case for such term as it may specify (not extending, in the case of any officer who is a Director, beyond the term of the directorship) and if no term is so specified, the term shall be until

(g)in the case of an officeholder who is a Director, until the directorship expires; and

(h)in all cases other than those to which clause (g) applies, until the office becomes vacant or the officeholder's successor is appointed.

(3)The Board of Directors may delegate all or any of the powers of any officer to any other officer or Director.

(4)The Board of Directors may engage, or arrange for the services of, employees, agents and other personnel for the Corporation.

(5)If the office of Chief Executive Officer becomes vacant, the responsibilities thereof shall, pending the appointment of a successor by the Board of Directors, be carried out by such person as may be designated for the purpose in writing by the person who is, or who is authorized to act as, the City's Commissioner, Community and Neighbourhood Services.

REMUNERATION AND INDEMNITY

6.(1)The Board of Directors shall have the power to

(a)fix the remuneration payable to the Corporation's officers (other than those who are Directors) and employees;

(b)authorize the reimbursement of any Director or officer of the Corporation for reasonable expenses incurred in the performance of duties in that capacity.

(2)No further by-law or confirmation by the shareholder other than the confirmation of this by-law shall be necessary to provide for the remuneration, and reimbursement provided for in this section 6.

(3)To the maximum extent permitted by law, the Corporation shall indemnify

(a)every existing and former Director and officer of the Corporation; and

(b)every individual who acts or acted at the Corporation's request as a director or officer of a body corporate of which the Corporation is or was a shareholder or creditor,

and each such individual's heirs, executors and administrators and estate and effects, against all costs, charges and expenses, including an amount paid to settle an action or satisfy a judgment, reasonably incurred by each individual in respect of any civil, criminal or administrative action, suit or proceeding to which such individual or such individual's estate is made a party by reason of being or having been a director or officer of the Corporation or body corporate, as aforesaid, or for or in respect of any deed, matter or thing whatsoever, made, done or permitted by such individual in or about the execution of the duties of such individual's office, and all other costs, charges and expenses that such individual sustains or incurs in or about or in relating to the affairs thereof, except such as are occasioned by the individual's own wilful neglect or default or unlawful act or omission.

(4)The Board of Directors may at the expense of the Corporation place insurance

(a)to indemnify the Corporation with respect to its liability under the indemnity provided for in subsection (3); and/or

(b)to benefit any individual referred to in subsection (3) against any liability incurred by the individual acting in the capacity of

(i)a Director or officer of the Corporation; and/or

(ii)a director or officer of another body corporate, if so acting at the Corporation's request,

to the maximum extent permitted by law.

SHAREHOLDER'S MEETINGS

7.(1)The annual meeting of the shareholder shall be held at a time when the Council is meeting.

(2)The written material requisite for any annual or other shareholder's meeting shall be submitted to the City Clerk, and the inclusion of such material in the documentation distributed by the City Clerk to the members of the Council in connection with the meetings at which such documentation is to be considered, shall constitute the notice of such shareholder's meetings.

   SHARES AND TRANSFERS

8.(1)Shares in the Corporation's capital stock shall be allotted to the City by resolution of the Board of Directors on such terms and conditions as the Board of Directors shall deem advisable.

(2)Any share certificates and any endorsement thereon shall be in such form as the Board of Directors may approve and each such certificate shall bear the signatures of a Director and the Secretary or an Assistant Secretary of the Corporation.

(3)The signatures described in subsection (2) may be engraved, lithographed or otherwise mechanically reproduced.

(4)Subject to the provisions of the Business Corporations Act and to the provisions, if any, of the Corporation's constating Articles as the same may be amended from time to time restricting the transfer of shares, all transfers of shares of the Corporation shall be made either in person or by attorney only on the books of the Corporation kept for that purpose and upon surrender of the certificate representing the shares to be transferred.

EXECUTION OF DOCUMENTATION

9.(1)All cheques and other negotiable instruments for the payment of money shall be signed by

(a)any one of the following officers of the Corporation:

(i)the Treasurer or the Treasurer's designate;

(ii)the Secretary,

and also by

(b)such other person, who need not be an officer of the Corporation and who may be a person described in clause (a), as the Board of Directors may from time to time designate,

in such manner as the Board of Directors may designate.

(2)Except as otherwise authorized by the Board of Directors from time to time by resolution, contracts, documents or instruments in writing on behalf of the Corporation shall be signed by:

(a)any one of the following officers of the Corporation:

(i)the Chief Executive Officer;

(ii)the President;

(iii)the Vice-President;

and also by

(b)any one of the following other officers of the Corporation:

(i)the Treasurer;

(ii)the Secretary,

and the Corporation's seal shall be affixed to such instruments as require the same.

BANKING AND FISCAL YEAR

10.(1)The banking business of the Corporation shall be transacted with such banks, trust companies or other bodies corporate or organizations as may from time to time be designated by or under the authority of the Board of Directors under such agreements, instructions and delegations of powers, subject to subsection 9(1), as that Board may from time to time prescribe or authorize.

(2)The fiscal year of the Corporation shall terminate on the 31^st day of December in each year.

IN FORCE BY VIRTUE OF clause 179(a) of the Business Corporations Act, R.S.O. 1990, Chapter B-16 and the Corporation's constating Articles of Amalgamation effective the 1^st day of January, 1999.

TORONTO HOUSING COMPANY INC.

BY-LAW NO. 2

A by-law respecting the borrowing of money

BE IT EFFECTED as a By-law of the Corporation as follows:

BORROWING/ISSUING SECURITIES/CHARGING

1.The Board of Directors may from time to time cause the Corporation to

(a)borrow money;

(b)issue bonds, debentures, debenture stock (both perpetual and terminable) or other securities;

(c)charge, hypothecate, mortgage or pledge any or all of the real or personal property, including book debts and unpaid calls, rights, powers, undertaking and franchises of the Corporation to secure any bonds, debenture stock or other securities, or any liability of the Corporation.

ADMINISTRATION

2.The Board of Directors may from time to time authorize any Director or Directors, officer or officers, employee of the Corporation or other person or persons whether connected with the Corporation or not,

(a)to make administrative arrangements with reference to the monies borrowed or to be borrowed in accordance with section 1, and as to the terms and conditions of the loan thereof, and as to the securities to be given therefor, with power to vary or modify such arrangements, terms and conditions and to give such additional securities for any moneys borrowed or remaining due by the Corporation as the Board of Directors may authorize; and

(b)generally to manage, transact and settle the administrative aspects of borrowing of money by the Corporation, subject to section 3.

EXECUTION OF DOCUMENTS

3.The Board of Directors may from time to time authorize any Director or Directors, officer or officers, employee of the Corporation or other person or persons, whether connected with the Corporation or not, to sign, execute and give on behalf of the Corporation all documents, agreements and promises necessary or desirable for the purposes described in sections 1 and 2 and in accordance with subsection 9(1) of By-law No. 1 of the Corporation to draw, make, accept, endorse, execute and issue cheques and other negotiable or transferable instruments, and the same and all renewals thereof or substitutions therefor so signed shall be binding upon the Corporation.

SUPPLEMENTAL POWERS

4.The powers hereby conferred shall be deemed to be in supplement to, and not in substitution for any powers to borrow money for the purposes of the Corporation possessed by its Directors or officers independently of a borrowing by-law.

IN FORCE BY VIRTUE OF clause 179(a) of the Business Corporations Act, R.S.O. 1990, Chapter B-16 and the Corporation's constating Articles of Amalgamation effective the 1^st day of January, 1999.

TORONTO HOUSING COMPANY INC.

BY-LAW NO. 3

A by-law respecting certain financial matters

BE IT EFFECTED as a By-law of the Corporation as follows:

AUDITOR'S REMUNERATION

1.The Directors of the Corporation shall have power, by resolution, to fix the remuneration of the Auditor of the Corporation appointed by the shareholder.

CONTINUATION OF RESERVES

2.(1)The Corporation shall

(a)continue to maintain the reserve accounts established by the Corporation's corporate predecessors "City of Toronto Non-Profit Housing Corporation" and "The Metropolitan Toronto Housing Company Limited" with the Corporation's bank and deposit therein each year monies equal to the annual credits allocated thereto pursuant to the Corporation's funding arrangements pending investment of such monies; and

(b)invest from time to time available monies in the reserve accounts described in clause (a) in such securities as may be acceptable to Canada Mortgage and Housing Corporation and the Ontario Ministry of Municipal Affairs and Housing, and for such purpose, debentures issued by the City of Toronto incorporated by the City of Toronto Act, 1997 or by any of the corporate predecessors of such City shall be deemed an eligible investment, subject to the approval of the said Canada Mortgage and Housing Corporation and the said Ministry.

(2)The monies of the reserves described in clause (1)(a) shall be applied as the Board of Directors may from time to time determine in accordance with the funding arrangements therein referred to.

TENANT BENEFIT FUND

3.(1)The Corporation shall

(a)continue to maintain with the Corporation's bank the interest-bearing account identified by the name "Tenant Benefit Fund" established by the Corporation's corporate predecessor "The Metropolitan Toronto Housing Company Limited" and deposit therein:

(i)proceeds from events held for the purpose of raising funds to benefit tenants described in subsection (2);

(ii)proceeds from fees from the use of common space in buildings formerly owned by such predecessor, including polling booths;

(iii)all donations, and grants appropriate for allocation, to such Fund; and

(iv)the proceeds of any investments made pursuant to clause (b);

(b)invest from time to time any funds deposited in the Tenant Benefit Fund described in clause (a) in such securities as may be permitted for trustees under the Trustee Act (Ontario) as amended from time to time.

(2)The monies of the Tenant Benefit Fund described in clause (1)(a) shall be applied to benefit the tenants at any of the buildings owned or operated by the Corporation in the manner and to the extent determined from time to time by the Board of Directors, which may delegate to representatives of such tenants the power to make such determination in accordance with principles determined by the Board of Directors.

IN FORCE BY VIRTUE OF clause 179(a) of the Business Corporations Act, R.S.O. 1990, Chapter B-16 and the Corporation's constating Articles of Amalgamation effective the 1^st day of January, 1999.

TORONTO HOUSING COMPANY INC.

BY-LAW NO. 4

A by-law respecting procedure relating to meetings

TABLE OF CONTENTS

Section

No. SubjectPage

1.Interpretation 1

2.Applicability 1

3.Election of Officers 1

4.Presiding Director at Board Meetings 1

5.Board Meetings: Time/Notice/Quorum 2

6.Notices 2

7.Public Meetings 3

8.Discussion 4

9.Agenda and Order of Business

(Board of Directors) 4

10.Voting 4

11.Reconsideration by Board 5

12.Board Minutes 5

13.Citizen Nominating Process 5

 TORONTO HOUSING COMPANY INC.

BY-LAW NO. 4

A by-law respecting the procedure relating to meetings

BE IT EFFECTED as a By-law of the Corporation as follows:

INTERPRETATION

1.In this by-law, unless otherwise expressly indicated or clearly required by the context,

(a)"Committee" means any advisory or other committee, subcommittee or similar entity composed of Directors;

(b)"Meeting" means any regular, special or Committee meeting of the Board of Directors;

(c)"Municipal Act" means the Municipal Act of the Province of Ontario and every other statute amending the same or substituted therefor;

(d)"President" means the Director holding the office of President of the Board of Directors;

(e)"Secretary" means the person holding the office of Secretary of the Corporation;

(f)"Vice-President" means the Director holding the office of vice-president of the Board of Directors.

APPLICABILITY

2.(1)This by-law shall govern the calling, place and proceedings of Meetings of the Board of Directors and of Committees.

(2)If this by-law does not provide for any circumstance that arises in the proceedings of any Meeting, same shall be dealt with in the manner decided by the person presiding at the Meeting, except to the extent that the Directors present otherwise resolve.

ELECTION OF OFFICERS

3.(1)If the position of President or any other officer of the Corporation to be occupied by a Director becomes vacant, the Board of Directors shall within 60 days appoint a successor to such office.

(2)At any Meeting at which any officer is to be elected in accordance with subsection (1),

(a)the person who is presiding shall call for nominations for such office;

(b)no nomination shall be valid unless seconded and supported by the nominee's written consent to stand for the office;

(c)if there is only one person nominated in accordance with clause (b) for any office, such person shall be declared to have been elected thereto by acclamation;

(d)a determination may be made, following the closing of nominations, of a maximum time for any Director to speak thereto.

PRESIDING DIRECTOR AT BOARD MEETINGS

4.(1)The President, and in the President's absence the Vice-President, shall preside at each meeting of the Board of Directors.

(2)If the person who is to preside at a Meeting is not in attendance thereat within 15 minutes of the time scheduled for the commencement thereof, the Directors then in attendance and constituting a quorum shall appoint one of their number to preside, and the Meeting shall proceed accordingly.

    BOARD MEETINGS: TIME/NOTICE/QUORUM

5.(1)The Board of Directors shall at or prior to the beginning of each calendar year set a tentative schedule of regular Meetings of the Board of Directors for that year and, subject to subsections (6) and (7), adhere thereto.

(2)Each meeting of the Board of Directors shall be held at such place in the Province of Ontario as the Board may by standing or specific direction require.

(3)The President or any two Directors may convene a Meeting of the Board of Directors at any time by giving formal notice thereof in accordance with subsection (4).

(4)Notice of a Meeting of the Board of Directors shall be delivered or sent by facsimile or other form of written transmission to each Director not less than 24 hours before the time at which the Meeting is to take place, and shall set forth the time, place and matters to be dealt with thereat.

(5)Each Director shall make reasonable efforts to advise the Secretary as far in advance as possible of any Meeting which such Director expects not to attend.

(6)If the Secretary ascertains that there will apparently not be a quorum at a forthcoming regularly or specially scheduled Meeting of the Board of Directors, the Secretary shall, in consultation with the President and the Chief Executive Officer, take appropriate steps to advise all Directors of the cancellation or rescheduling thereof.

(7)If a regularly scheduled Meeting of the Board of Directors is cancelled pursuant to subsection (6) without being rescheduled, the next regularly scheduled Meeting thereof shall not be cancelled without being rescheduled.

(8)The quorum for a Meeting of the Board of Directors shall be a majority of the total number of all Directors, determined as if any vacancies had been filled.

NOTICES

6.(1)For the purposes of this section, 'recorded address' means, with respect to any person, the most recent address shown for such person in the records of the Corporation, including the copy of the most recent notice filed pursuant to the Corporations Information Act of Ontario.

(2)The Secretary of the Corporation may change or cause to be changed in the records of the Corporation the address of the shareholder (the City), any Director, any officer, the auditor or the member of any committee in accordance with any information believed by the Secretary to be reliable.

(3)The giving (including the sending, delivering or serving) of any notice (including any communication or other document) pursuant to the Business Corporations Act (including the regulations thereunder), the articles or by-laws of the Corporation or otherwise to the Corporation's shareholder (the City), its auditor, any of its officers, any Director or any member of any of its committees shall be sufficient if same is

(a)delivered personally to the intended recipient, or to the intended recipient's recorded address, in either of which cases it shall be deemed to have been received on such delivery; or

(b)mailed post prepaid, in which case it shall be deemed to have been received, in the absence of any interruption of postal service in the City's urban area affecting the delivery or handling thereof, on the fifth day next following such mailing.

(4)In computing the time for any notice referred to in subsection (3), the day of giving the notice and the day of the Meeting or other event shall in each case be excluded.

(5)Neither

(a)the non-receipt of any notice deemed to have been received pursuant to clause (3)(b); nor

(b)any non-substantive error in any notice given pursuant to subsection (3)

shall invalidate any action taken at any Meeting held pursuant to that notice or otherwise founded thereon.

(6)Any person entitled to a notice as described in subsection (3) may at any time in writing waive same or abridge the time for the delivery thereof, and any such waiver, whether given before or after the conduct of the business to which such notice relates, shall cure any default in the giving or timeliness of such notice, as the case may be.

PUBLIC MEETINGS

7.(1)Except as provided in this section, all Meetings shall be open to the public.

(2)The person presiding at any Meeting may expel any person for improper conduct.

(3)No Meeting or part thereof shall be held in camera or be otherwise closed in any way to the public unless

(a)the Board of Directors or Committee holding same has expressly so resolved, indicating as the grounds therefor that the general nature of the matter to be considered therein is whichever of those specified in clause (b) is applicable; and

(b)the subject matter being considered is

(i)the security of the property of the Corporation;

(ii)personal matters about an identifiable individual, including Corporation staff;

(iii)a proposed or pending acquisition of land by the Corporation;

(iv)labour relations or employee negotiations;

(v)litigation or potential litigation, including matters before administrative tribunals, affecting the Corporation;

(vi)the receiving of advice that is subject to solicitor-client privilege, including communications necessary for that purpose;

(vii)the Board of Directors or Committee having the Meeting has properly authorized the Meeting to be closed under any Act of the Legislature of the Province of Ontario.

(4)Following the conclusion of any in camera session of any Meeting

(a)resumption of the public session thereof shall take place in accordance with the announcement made in that regard after such conclusion by the person presiding thereat, or in the absence of such an announcement, ten (10) minutes after such conclusion;

(b)on resumption in accordance with clause (a), the recording secretary shall announce to the Meeting any recommendations resulting from its in camera session or, if applicable, that a vote took place in accordance with subsection 9(5).

(5)This section 7 shall apply, with necessary modifications, to any meeting of any committee which has been created by the Board of Directors but which is not a Committee.

DISCUSSION

8.No Director shall

(a)speak on any subject other than the subject under discussion; or

(b)speak again to any item until all other Directors wishing to speak thereto have done so for the first time;

(c)disobey this by-law or a decision of the person presiding or of any Meeting on questions of order or practice or upon the interpretation of this by-law and if a Director persists in any such disobedience after having been called to order by the person presiding, such person shall forthwith put the question, no amendment, adjournment or discussion being allowed, that "such Director be ordered to leave for the duration of the Meeting", but if the Director apologizes, the Meeting may rescind such order.

AGENDA AND ORDER OF BUSINESS

(BOARD OF DIRECTORS)

9.(1)The Agenda for each meeting of the Board of Directors shall be determined in accordance with this by-law, by the Chief Executive Officer in consultation with the President, and any Director desiring the inclusion of a particular item (including an oral presentation to the Board) in any Agenda shall first consult with the Chief Executive Officer.

(2)The Secretary shall have prepared and printed for the use of the Directors at each regular Meeting of the Board of Directors all Agenda material, including a list thereof setting forth as the first item the Minutes of the previous Board Meeting and thereafter the other items to be dealt with, including the minutes of any Meeting of the Finance/Audit Committee not previously submitted to the Board.

(3)The business of the Board of Directors shall in all cases be taken up in the order in which it is set forth in the Agenda list, unless otherwise decided by the Directors.

(4)When an alteration of the order of business is desired for the convenience of a Meeting, such alteration may be made with the consent of a majority the Directors present, but the Directors shall not thereby delete any portion of the business which has been set out in the Agenda list.

(5)Notwithstanding the order of business described in subsection (1), where there are related items on an Agenda list, the Board of Directors may:

(a)deal with all such items together;

(b)deal with such items as they appear on the Agenda list; or

(c)refer the items for consolidation into one report.

(6)Declarations of interest in any Agenda item shall be made prior to any consideration of the item at the Meeting.

    VOTING

10.(1)All persons constituting a Meeting, including the chair, shall each have one vote.

(2)Unless otherwise required by law or this by-law, all decisions at a Meeting shall be made by majority vote.

(3)All motions shall be moved and seconded before being discussed or put to a vote.

(4)Subject to subsection (5), a Meeting shall not be closed to the public during the taking of a vote.

(5)A vote may be taken in a Meeting or any part thereof closed to the public pursuant to clause 7(3)(b) if the vote is for a procedural matter or for giving directions or instructions to officers, employees or agents of the Corporation or persons retained by or under contract with the Corporation.

RECONSIDERATION BY BOARD

11.A motion to reconsider may not be made at the same Meeting at which the decision proposed for reconsideration was made without the consent of the Meeting.

BOARD MINUTES

12.(1)Unless otherwise decided by the Board of Directors, the minutes of each meeting thereof shall be submitted thereto for confirmation or amendment at its next regular meeting or as soon thereafter as is reasonably practicable.

(2)After the minutes of a previous meeting of the Board of Directors have been confirmed, or approved as amended in accordance with subsection (1), the person then presiding and the Secretary shall sign same.

CITIZEN NOMINATING PROCESS

13.The Board of Directors shall establish a nominating committee responsible for developing

(a)criteria for citizen members of the Board of Directors; and

(b)a process for providing the shareholder with advice regarding citizen appointments to the Board.

IN FORCE BY VIRTUE OF clause 179(a) of the Business Corporations Act, R.S.O. 1990, Chapter B-16 and the Corporation's constating Articles of Amalgamation effective the 1^st day of January, 1999.

TORONTO HOUSING COMPANY INC.

BY-LAW NO. 5

A by-law respecting the Sale of Real Property

BE IT EFFECTED as a By-law of the Corporation as follows:

DEFINITIONS

1.In this By-law:

(a)"Act" means the Municipal Act, R.S.O. 1990, c. M.45 and all regulations made thereunder;

(b)"land" means land as defined in the Act;

(c)"Land Register" means the public register of all real property owned or leased by the Corporation, maintained in accordance with section 4 as required by, and subject to all exceptions in, the Act;

(d)"real property" means land which is owned by the Corporation, other than a leasehold interest for less than 21 years;

(e)"sale" includes a lease of 21 years or longer, other than as part of an arrangement under which the leased real property is used for Corporation purposes without being surplus;

(f)"site" means an identified or identifiable parcel of real property; and

(g)"surplus" means real property which is no longer required by the Corporation.

PRECONDITIONS FOR SALES OF SITES

2.No binding arrangements for the sale of any site shall be authorized by the Board of Directors unless:

(a)it has by by-law or resolution declared same to be surplus at a meeting open to the public;

(b)it has obtained and considered at least one appraisal of the fair market value thereof that has not at the time of such authorizing become outdated, except where the Act has dispensed with the need for an appraisal; and

(c)notice of such sale has been given to the public in accordance with section 3,

but nothing herein shall prevent the entering into of arrangements for such a sale conditional on compliance with the requirements of this section.

PUBLIC NOTICE

3.(1)Where the Board of Directors has approved the manner or process of carrying out the sale of a site declared to be surplus in accordance with clause 2(a), notice to the public of the proposed sale shall be given in accordance with this section

(a)by the posting of a clearly visible sign on the site for a period of not less than 7 days; and/or

(b)by publication in a newspaper having circulation in the area of the site,

as the Board of Directors may determine.

(2)A notice of proposed sale given under clause (1)(b) shall contain at least the following information:

(a)a general description of the manner by which the sale will be carried out;

(b)location of the site by reference to municipal address or legal description or both;

(c)approximate size of the site by reference to dimensions and area, or both, and a brief description of any buildings or other improvements situate thereon;

(d)the date the property was declared surplus;

(e)the name, title, address and telephone number of the Corporation official(s) having information about the proposed sale; and

(f)the latest date by which enquiries may be made of any official described in clause (e).

(3)A notice of a proposed sale given by posted sign under clause (1)(a) shall contain at least the information described in clauses (2)(a) and (e).

   LAND REGISTER

4.(1)The Corporation shall establish and maintain the Land Register, which shall contain the following information with respect to each site listed therein:

(a)the municipal address or a description of the location by reference to public roads;

(b)approximate size by reference to dimensions or area, or both;

(c)a brief description of all buildings and other significant improvements thereon;

(d)nature of the Corporation's interest (ownership/leasehold);

(e)whether the site is owned by or leased to the Corporation.

(2)The Land Register may for any site contain any information additional to that described in subsection (1) which the Chief Executive Officer of the Corporation considers relevant, including:

(a)a legal description;

(b)details, including duration, of any long-term lease or other right to occupy the site that has been granted by the Corporation;

(c)municipal tax data;

(d)mortgage details; and

(e)surplus status, if applicable.

(3)All reference to a site in the Land Register shall be deleted following the completion of a sale thereof where the Corporation retains no further ownership or leasehold interest therein.

(4)Unless otherwise determined by the Board of Directors, copies of any data in the Land Register shall be made available to any person requesting same at the same rate charged by the City for copies of documents under the control of the City Clerk.

IN FORCE BY VIRTUE OF clause 179(a) of the Business Corporations Act, R.S.O. 1990, Chapter B-16 and the Corporation's constating Articles of Amalgamation effective the 1^st day of January, 1999.

 ATTACHMENT II

THIS MEMORANDUM OF AGREEMENT made in quadruplicate effective as of the 1^st day of January, 1999,

BETWEEN:

CITY OF TORONTO

hereinafter called "the City"

OF THE FIRST PART

- and -

TORONTO HOUSING COMPANY INC.

hereinafter called "the Housing Company"

OF THE SECOND PART

WITNESSES THAT:

WHEREAS the Housing Company is a municipal non-profit housing corporation incorporated under the Business Corporations Act (Ontario) whose sole issued share is owned by the City pursuant to section 13 of the Housing Development Act (Ontario), and the parties are desirous of documenting the Housing Company's mandate and the framework within which the Housing Company will operate in order to serve the City's interests as sole shareholder,

IN CONSIDERATION OF the mutual covenants herein contained, the parties hereto hereby agree as hereinafter set forth.

1.(1)The City recognizes the need and the right of the Housing Company to manage, through its Board of Directors, its business and its affairs in accordance with this Agreement.

(2)In managing its affairs, the Housing Company may properly

(a)enter into contracts, including, without restriction, financial agreements and mortgages;

(b)establish subsidiaries; and

(c)carry out other matters of business,

(d)establish, subject to subarticle 4(1) of this Agreement, its own operating and administrative policies, which may conform to those of the City in whole or in part where they meet the Housing Company's needs,

without seeking approval from the City.

(3)The Housing Company shall have the latitude to decide for itself its needs for professional service and to make arrangements for such services, including legal, financial and investment services from such source in each case as its Board of Directors determine to be desirable, but where such services are obtained from the City, the Housing Company and the City shall by written agreement stipulate the terms for such services, including the fees payable by the Housing Company to the City and the means by which the Housing Company shall hold the City accountable for delivering satisfactory services.

2.(1)In establishing its policies, plans and directions, the Housing Company shall adhere to the Mission Statement and the Statement of Values and Beliefs set forth in Schedule "A" attached to this Agreement, as same may be amended from time to time in accordance with subarticle (2) hereof (collectively hereinafter referred to as "the Principles").

(2) The Housing Company shall not replace, or make any material amendment to the Principles without the prior written approval of the City.

(3)The Housing Company shall expeditiously advise the City Clerk in writing of each minor amendment to the Principles.

3.The Board of Directors of the Housing Company shall be responsible for protecting the integrity of the assets of the corporation, and for ensuring that annual operating funding is sufficient to sustain such assets and the social housing programmes with which they are associated.

4.(1)The Housing Company shall follow the administrative policies of the City set forth in Schedule "B" attached to this Agreement and such others as the City Council may expressly make applicable to the Housing Company from time to time.

(2)The City shall consult with senior staff of the Housing Company on matters that may potentially affect the operations or business of the Housing Company where the disclosure involved in such consultation is not restricted by confidentiality requirements.

5.(1)From time to time as appropriate the Housing Company shall advise the City Clerk in writing of its strategic and long-term business plans for the information of the City Council.

(2)For purposes of accountability to the City Council, the Housing Company shall submit to the City Clerk annually a written report on its overall financial and service performance.

(3)In recognition of the Housing Company's broader accountability to the community, its tenants, and other stakeowners, the Housing Company shall make available to the public an annual report on its overall financial and service-providing performance.

6.(1)It is understood that

(a)the City will not be expected to provide financial support for the Housing Company in excess of funding pursuant to social housing programme or other agreements in effect between them from time to time;

(b)if the City directs the Housing Company to undertake any additional activities, developments or enterprises beyond those covered in the agreements documenting the Housing Company's social housing programmes, it shall reasonably compensate the Housing Company for any net losses caused thereby.

(2)When the Housing Company's financial statements are submitted to the City at its annual shareholder meeting, the Housing Company shall demonstrate on the basis thereof and of such other information as it may present for the purpose that

(a)the Housing Company's reserves are adequate, so that no need for excess funding as mentioned in clause 6(1)(a) exists, otherwise the Housing Company shall

(i)provide details of a plan in place to address any unfunded liability without requiring the City to supplement the capital of the Housing Company; or, if such a plan is not feasible,

(ii)advise the City of the liability that could potentially accrue to the Housing Company as a result of the inadequacy;

(b)the Housing Company's ongoing operating finances are balanced and that the reserves will not be, or have not been, unduly depleted by any deficits so as to weaken the ability of the Housing Company to finance itself through its revenues and anticipated levels of social housing programme subsidies.

(3)The Board of Directors of the Housing Company shall provide to the City such additional information as it may require from time to time in connection with clauses (1)(a), (2)(a) and (2)(b) hereof.

7.(1)Designated officials of the City and senior staff of the Housing Company shall annually review the general conduct of the relationship between the City and the Housing Company and formulate any required actions or, subject to mutual assent, amendments to this Agreement.

(2)Only the City Council may, on behalf of the City, authorize an amendment of, or other departure from, the terms of this Agreement

IN WITNESS WHEREOF the parties hereto have hereunto affixed their respective seals attested to by the hands of their respective proper officers in that behalf duly authorized.

SIGNED, SEALED AND DELIVERED)CITY OF TORONTO

)per:

)

)City Clerk

)

)

)

)Treasurer

)

)TORONTO HOUSING COMPANY INC.

)per:

)

)

)Chief Executive Officer

)

)

)

)Secretary

SCHEDULE "A"

to the Agreement effective the 1^st day of January, 1999, between

TORONTO HOUSING COMPANY INC.

- and -

CITY OF TORONTO

Principles

Mission Statement

Toronto Housing Company Inc. provides high-quality housing environments for low and moderate-income tenants. The company is committed to healthy and sustainable tenant communities, in which tenants and staff see their diversity as their strength and tenants participate fully in shaping their communities.

Values and Beliefs

1.We believe that tenants and applicants are our primary customers and are entitled to quality housing and to prompt and courteous service.

2.We believe that competent and knowledgeable staff, with the authority to make decisions at the front line, will provide quality service.

3.We believe that all applicants for housing must be informed of the range of housing options available to them and be given as much information as is possible to ensure informed decisionmaking.

4.We believe that the age, culture, ethnicity, race, family traditions, community, language, sexual orientation, abilities and spiritual beliefs of applicants and tenants must be respected in all planning and delivery of services.

5.We believe that healthy tenant communities are enriched by partnerships between tenants, staff and the broader community.

6.We believe that we must have a strong and sustainable financial base for our organization and we will seek out new ways to enhance the financial health of our organization.

7.We believe that we must maintain our buildings at the standard of repair necessary to ensure the future viability of the assets in meeting the needs of low and moderate income households.

8.We believe that we have a responsibility to operate as efficiently as possible and deliver a quality service at an affordable cost.

9.We believe that we have a responsibility to exercise leadership in the social housing sector, always looking to new and innovative ways to meet housing needs.

10.We believe that we must continue to play a role in promoting the development of new affordable housing stock.

SCHEDULE "B"

to the Agreement effective the 1^st day of January, 1999, between

TORONTO HOUSING COMPANY INC.

- and -

CITY OF TORONTO

City Policies to be Implemented by the Housing Company

1.(1)The Housing Company shall

(a)operate and act in a manner consistent with the intent of the City's policies respecting social housing and related objectives;

(b)where it is supervising and managing employees of the City assigned to it, follow, subject to subparagraph (2) hereof, the City's human-resources policies.

(2)The City shall when requested by the Housing Company negotiate in good faith with respect to exceptions to or waivers of the requirements of clause (b) of subparagraph (1) hereof, having regard to the Housing Company's need for flexibility and discretion in the requirements of its social-housing operations.

2.Where clause (1)(b) of this Schedule is applicable, the City shall involve appropriate staff of the Housing Company in decisions relating to any pending changes in the collective agreements affecting the employees concerned.

3.For each social-housing agreement to which the Housing Company is a party and under which the City is the funder as a result of downloading, the Housing Company shall comply with the reporting requirements of the City in the same manner as other providers of social housing being funded by the City without being required to furnish additional information other than as called for in the above-captioned Agreement.

4.The parties shall consult with each other regarding plans about the use of office and real property and information technology so that opportunities for collaboration can be identified and implemented.

5.The Housing Company shall keep the designated City officials (currently the General Manager, Shelter, Housing and Support Division, and the Commissioner of Community and Neighbourhood Services) informed concerning matters of interest to the City, City Council and its committees.

6.(1)The Housing Company shall provide the City with its expertise and advice related to housing management, operations or development where reasonably requested.

(2)Senior staff of the Housing Company shall respond reasonably to requests for information and reports, and participation in groups or at meetings from designated City officials.

--------

The following persons appeared before the Community and Neighbourhood Services Committee in connection with the foregoing matter:

-Ms. Sandy Nimmo, Tenants Associations Council of Toronto; and submitted a brief in regard thereto; and

-Dr. John Metson, Chair, Board of Directors, City of Toronto Non-Pofit Housing Corporation and The Metropolitan Toronto Housing Company Limited.

(City Council on December 16 and 17, 1998, had before it, during consideration of the foregoing Clause, a communication (undated) from Ms. Margaret Watson, Co-Chair Metro Toronto Chapter, Canadian Pensioners Concerned, Inc., Ontario Division, expressing concern respecting the proposal to decrease the percentage of tenant places reserved on the Board of Directors of the new Toronto Housing Company.)

4

Reform of Social Housing Program -

Final Report of the Social Housing Committee

(City Council on December 16 and 17, 1998, amended this Clause by adding thereto the following:

"It is further recommended that the Commissioner of Community and Neighbourhood Services be requested to submit a report to the Community and Neighbourhood Services Committee on the concerns and issues raised in the communication dated December 15, 1998, from Ms. Ann Fitzpatrick, Community Worker, Public Housing Fightback Campaign.")

The Community and Neighbourhood Services Committee recommends the adoption of the following report (November 18, 1998) from the Commissioner of Community and Neighbourhood Services:

Purpose:

To provide Members of Council with the final Report of the Social Housing Committee, which makes recommendations to the Minister of Municipal Affairs and Housing with respect to the reform of social housing programs in Ontario; and to recommend a Council communication to the Minister of Municipal Affairs and Housing with comments regarding the Social Housing Committee's report.

Financial Implications:

No financial implications identified.

In 1998, it is estimated that the City will pay approximately $255 million (in 1998 budget) for its share of social housing programs. Estimates for future years are not yet available.

Recommendations:

It is recommended that Council:

(1)write to the Minister of Municipal Affairs and Housing with respect to the following comments on the Report of the Social Housing Committee:

(a)endorse the Social Housing Committee's Final Report and encourage the Provincial Government to proceed quickly with implementing the reform proposals so that the devolution of administrative responsibility for social housing to municipalities can proceed;

(b)note that the costs of administering social housing have not been fully included in the download number, indicate that, given the size of the portfolio, these costs will be considerable in the City of Toronto, and seek a commitment for provincial funding for these administrative costs when the responsibility is transferred;

(c)re-emphasize Council's position that administration of unilateral federal housing programs not be transferred to municipalities;

(d)advise that, in the City's view, benchmarks for housing provider operating costs must be in place before operating loans are set and that the process for establishing these benchmarks should begin immediately and be done in partnership between the Provincial Government, municipalities and housing providers;

(e)specifically commend the Committee for its recommendations that technical audits be conducted to determine the adequacy of capital reserves, that these reserves be "topped-up" by the Province as required, and that the Province establish and fund new capital reserves for the Ontario Housing Corporation stock;

(f)caution that, while strategies for accelerated loan repayment to municipalities and capturing a portion of housing provider surpluses may be desirable, the City has some concern about the potential for significantly increased municipal administrative costs and creating disincentives for housing providers to operate efficiently; and

(g)emphasize that for social housing reform to succeed, the new program must be designed and implemented in partnership between housing providers, municipalities and the Provincial Government, and identify the City of Toronto's interest in being an active participant in the design and implementation process.

(2)authorize the appropriate City officials to take the necessary steps to give effect to Recommendation No. (1).

Council Reference/Background:

Background:

The process for reforming social housing began in 1997 when the Province announced it would download financial and administrative responsibility for social housing to the municipal level. Financial responsibility for social housing was transferred to municipalities effective January 1, 1998, and it is intended that program administration be transferred sometime in the next two years.

The Minister of Municipal Affairs and Housing (MMAH) launched the reform process by establishing an Advisory Council. This Advisory Council set out a direction for program reform rather than a detailed plan. Therefore, earlier this year, the Minister appointed the Social Housing Committee (SHC) to develop more detailed plans.

In late August 1998, the SHC released a Discussion Paper on Social Housing Reform and invited comments from interested stakeholders. Many housing providers, community agencies and municipalities, including the City of Toronto, provided feedback to the Committee. Council's approved position on the Discussion Paper is provided as Appendix A to this report.

On November 3, 1998, the Committee submitted its final Report of the Social Housing Committee to the Minister of Municipal Affairs and Housing. A copy of the full text of the Report of the Social Housing Committee is provided as Appendix B to this report.

The Minister of Municipal Affairs and Housing is now in the process of determining the government's response to the Social Housing Committee proposals.

Summary of Reform Recommendations:

The recommendations contained in the November 1998 Final Report have not changed significantly from those which were contained in the August 1998 Discussion Paper. They propose a social housing program that is intended to be simpler to administer, more cost-effective, more business-like and more accountable.

Under the current system, cost controls come more from provincial oversight which has permitted the Province to exercise a substantial amount of control over provider operations. The new funding model proposes trade-offs for both the housing providers and municipalities who will administer the program. Providers would gain more autonomy, funding predictability, and streamlined accountability. In return, they would be required to repay to the municipality some of the debt which they did not have to repay under the old program, and to operate within established cost and revenue benchmarks. Municipal administration costs would be reduced through harmonized programs and more targeted and streamlined methods of administration and overview.

Funding levels for each provider would be initially established based on cost and revenue benchmarks, and the SHC now recommends that these benchmarks be reviewed after 10 years to determine whether or not adjustments are needed. Instead of a high degree of monitoring for all providers, emphasis is placed on developing systems and protocols to identify providers which may have difficulties, and to take action to help those providers resolve difficulties and stabilize.

SHC recommends consolidated management of mortgages (to attain below-market financing rates, and lock in rates over entire amortization period to achieve certainty) and energy audits of projects to determine if money can be saved through system conversions (with the Province paying for the audits). By providing incentives for efficient operations, providers would be able to repay City subsidies sooner. Finally, the SHC recommends allowing cities to combine social housing intake functions with similar functions for other social programs it delivers if savings could be achieved in this way.

Details about the methodology and the process for implementing the benchmarks have not yet been established. Protocols around early detection of potential problems, municipal responses and default management also need to be developed. SHC recommends that municipalities be included in the design and implementation work, and work directly with housing providers to review data and calculations.

The relationship between the municipality and housing providers would be established by two agreements. One agreement would address the operating loan the provider must pay back to the municipality; the other would address funding for rent-geared-to-income units. Both agreements would have standard clauses about reporting requirements, breaches and remedies, and set out requirements established by the Province (provincial standards). Details about how projects in difficulty will be managed need to be determined.

Details about how providers would report to municipalities have yet to be worked out. In particular, it is imperative that tools and information streams are developed which would permit the City to respond quickly if a provider has financial or other problems.

The model proposes that the Province will continue to have an ongoing role in setting and monitoring standards in key areas, transferring the federal share of funding to the municipality, reporting to the Federal Government as required, and participating in centralized management of mortgage renewals and default management.

Provincial standards are recommended in nine key areas, generally related to access to rent-geared-to-income units. Standards include setting a minimum number of RGI units within each municipal jurisdiction (roughly equivalent to the current number of units) and having provincial consistency around issues such as eligibility, benefit level, RGI calculations and minimum rent. The mandatory provincial standards are a base. The municipality, generally in consultation with housing providers, can choose to have additional requirements for all housing providers in its area, and/or set requirements which are specific to one or more providers.

SHC recommends harmonization of public housing with other social housing programs, and that municipalities have the option of managing and owning public housing projects in their area.

Key Changes to the Recommendations in the Draft Discussion Paper:

A summary of the SHC recommendations, identifying changes which have been made since the release of the discussion paper, is provided as Appendix C. A number of significant changes are worthy of special note:

Repayment of the Operating Loan:

SHC Recommendation No. 19 recommends that housing providers must now use 50 percent of their annual surpluses to repay their operating loan, in addition to their regular loan repayment based on rent increases, as proposed initially. Once the operating loan is repaid, housing providers must keep giving municipalities 50 percent of surpluses, as long as there is still a Rent Subsidy Agreement in place. Providers are also restricted in the ways they can use the surpluses which they can keep - to further reduce subsidies, for capital work, or, with municipal approval, to increase RGI units or create new units.

While the prospect of accelerated loan repayment and additional potential revenue to municipalities is attractive, this new recommendation must be viewed with caution. Monitoring provider budgets to identify surpluses and ensure compliance with the recommendation would drive up municipal administration costs significantly. Some would also argue that clawing back surpluses discourages housing providers from accumulating them in the first instance, and that incentives for early loan repayment are a better solution.

Benchmarks:

SHC Recommendation No. 6 (new) recommends that the Province set up a true benchmarking process to determine acceptable provider operating costs, for the purposes of setting the operating loan. (The original recommendation proposed using a median of current operating costs and reducing it by 5 percent.) However, the report goes on to recommend that if true benchmarks cannot be set by the time operating loans are to be established, the median cost minus 5 percent should be used.

The notion of setting true benchmarks as the basis for the operating loan is a good one and, as recommended by the SHC, work in this regard should begin immediately. There should be no reason why these costs cannot be established in a timely manner and used as the basis for the operating loan calculations. Any "interim" solutions will only undermine the benchmarking work which must be done and may threaten the viability of some providers. In addition, as the benchmark is the basis for the calculation of the loan, revisions to that benchmark would create a significant amount of unnecessary additional administrative work.

The report does not recommend ongoing reviews of provider budgets, but rather a one-time review at the ten-year point (rather than the three-year point which had been originally contemplated) to determine whether there has been a material change to the cost or revenue components of the operating loan calculations. Although the City did not initially advocate for review once the benchmark was set, this approach is acceptable.

Adequacy of Capital Reserves:

The City of Toronto has expressed considerable concern about the state of repair of the social housing stock to be transferred, and the availability and adequacy of capital reserves. It is extremely encouraging to note that the final report of the Social Housing Committee recommends technical audits to determine the adequacy of capital reserves for all social housing projects, provincially-funded "top up" of reserves where audits demonstrate that this is required, and provincially-funded reserves for public housing.

Senior Government Involvement in Housing:

The SHC recommends all levels of government come together to discuss how Ontario's current social housing stock can be funded after the current operating agreements expire with the Federal Government. The Committee also recommends all levels of government work together to develop a comprehensive social housing policy for Ontario, and has suggested that the costs of social housing should not be funded through property taxes, but more rightly through income-based taxes. This advocacy by the Social Housing Committee for a renewed federal and provincial role in social housing is much welcomed.

Conclusions:

As the City is now paying the provincial share of the costs of social housing, it is crucial that the City be in a position to control decisions regarding how that social housing is administered. Transfer of administrative responsibility for social housing to municipalities is a prerequisite of true "say for pay". However, the costs of administration in the City will be high. While these costs have not been officially identified by the Provincial Government, unofficial estimates range between $5 million and $7 million per year. It is recommended that these costs be funded by the Province.

Discussions regarding program reform have been on-going since the Provincial Government first announced its downloading intentions. It is time for some decisions to be made and for the design and implementation of the reformed program to begin. The City's position on the final report of the SHC should be forwarded to the Minister so that he is aware of the City's position as he makes his decisions about the implementation of the recommendations in the report.

It is also important to point out the City's former position regarding unilateral federal social housing programs and note that the City has no interest in the administration of these programs.

Attachments:Appendix A:Council's Position on Draft Discussion Paper

Appendix B:Report of the Social Housing Committee, November 3, 1998

Appendix C:Changes Included in Final Report

Contact Name:

Joanne Campbell

Tel: 392-7885, Fax: 392-0548

(A copy of each of the Appendices A and C, referred to in the foregoing report, was forwarded to all Members of Council with the agenda of the Community and Neighbourhood Services Committee for its meeting on December 3, 1998, and a copy thereof, together with Appendix B, is on file in the office of the City Clerk.)

--------

The Community and Neighbourhood Services Committee reports, for the information of Council, also having had before it during consideration of the foregoing matter a communication (December 3, 1998) from Mr. Vance Latchford and Mr. Cliff Martin, The Public Housing Fightback Campaign, submitting recommendations for consideration with the report of the Commissioner of Community and Neighbourhood Services.

Mr. Cliff Martin, The Public Housing Fightback Campaign, appeared before the Community and Neighbourhood Services Committee in connection with the foregoing matter; and submitted the following documents:

-The Public Housing Fightback Campaign's Submission to the Social Housing Committee, September 1998;

-letter (November 23, 1998) addressed to The Honourable Alfonso Gagliano, Minister Responsible for Public Works and Government Services; and

-the "Response of the OHC Board to the Discussion Paper on Social Housing Reform" presented to the Social Housing Committee on September 28, 1998.

(City Council on December 16 and 17, 1998, had before it, during consideration of the foregoing Clause, a communication (December 15, 1998) from Ms. Ann Fitzpatrick, Community Worker, Public Housing Fightback Campaign, on behalf of a coalition of public housing tenants and community-based agencies which work with tenants who live in MTHA, submitting comments in opposition to the Social Housing Committee Report.)

 5

Increase in Mortgage Insurance Premiums

for Existing Rental Housing

(City Council on December 16 and 17, 1998, adopted this Clause, without amendment.)

The Community and Neighbourhood Services Committee recommends the adoption of the recommendation of the Council Strategy Committee for People Without Homes embodied in the following communication (November 18, 1998) from the City Clerk:

The Council Strategy Committee for People Without Homes at its meeting of November 16, 1998, had before it a report dated October 30, 1998, from the Commissioner of Community and Neighbourhood Services, regarding a recent decision made by Canada Mortgage and Housing Corporation to increase the fees and premiums charged by the Canada Mortgage and Housing Corporation to insure mortgages on existing rental housing.

The Council Strategy Committee directed that the following recommendations, as contained in the noted report, be forwarded to the Community and Neighbourhood Services Committee for consideration:

"It is recommended that:

(1)City Council express to the Federal Minister Responsible for the Canada Mortgage and Housing Corporation its strong opposition to the increase in mortgage insurance premiums for existing rental housing announced for January 1, 1999, and request that the increase be rescinded given the potential negative impact on affordability of rental housing; and

(2)City Council strongly urge the Federal Minister Responsible for the Canada Mortgage and Housing Corporation to reduce mortgage insurance premiums for new rental housing in order to encourage the construction of new multi-residential rental housing."

Purpose:

To inform the Council Strategy Committee of a recent decision made by the Canada Mortgage and Housing Corporation (CMHC) to increase the fees and premiums charged by the Canada Mortgage and Housing Corporation to insure mortgages on existing rental housing.

Financial Implications:

No direct implications for the City.

Recommendations:

It is recommended that:

(1)City Council express to the Federal Minister Responsible for the Canada Mortgage and Housing Corporation its strong opposition to the increase in mortgage insurance premiums for existing rental housing announced for January 1, 1999, and request that the increase be rescinded given the potential negative impact on affordability of rental housing.

(2)City Council strongly urge the Federal Minister Responsible for the Canada Mortgage and Housing Corporation to reduce mortgage insurance premiums for new rental housing in order to encourage the construction of new multi-residential rental housing.

Background:

The President of CMHC announced on October 9, 1998, that insurance premiums and underwriting fees for existing rental housing are being increased (see attached news release). As of January 1, 1999, the premiums for mortgage insurance on existing rental housing will increase as shown in Appendix 1.

CMHC indicates that mortgage insurance for the purchase of existing rental buildings has not been viable over the past 25 years and they have lost more than $200 million on the program. They suggest that the increases are necessary to ensure the long-term viability of the program.

This premium change will increase monthly carrying costs by approximately $4.00 per unit (for a mortgage at 85 percent of value, on a project worth $5 million, with 100 apartment units) or $1.80 per unit (for the same project with a mortgage at 75 percent of value).

Comments:

The Federal Government, through the Canada Mortgage and Housing Corporation, provides mortgage insurance for the financing of rental and ownership housing. Such insurance is critical to the financing of new and existing housing given the conservative nature of private lenders - mortgage insurance is generally mandatory for "high ratio" lending, i.e., where the value of the loan exceeds 65 percent of the value of the property/building being built or purchased. CMHC is currently the only provider of mortgage insurance for rental housing, insuring loans with a total value of $2.27 billion for almost 69,000 existing rental units in 1997.

Over the years, CMHC has developed three mortgage insurance products for rental housing:

(i)insuring 100 percent of private financing for subsidized housing, where mandated as part of the social housing programs;

(ii)insuring mortgages for new private rental housing construction; and

(iii)insuring the refinancing/purchase of existing private rental housing.

In the case of social housing, any losses to the Federal Government as a result of mortgage defaults are considered a program cost of social housing: in some cases the social housing program agreement requires that the cost be covered by, or shared with, the Province.

In the case of insurance for other rental housing, CMHC has a mandate to be commercially viable. CMHC's rationale is that it provides a public service in making high ratio lending available for rental housing across the country, and to do so it must ensure that the program is economically viable. The program is appealing because mortgage insurance reduces the lender's exposure to loss, and, as a result, borrowers can obtain lower interest rates. As long as this interest rate benefit exceeds the cost of the insurance premium, the program will be attractive to borrowers.

Despite the fact that CMHC operates the program as a business venture rather than a policy tool, it has a significant impact on the rental housing market in the City of Toronto. For example, in 1996, CMHC raised the mortgage insurance premiums for new rental housing mortgages using the rationale that its assessment of financial risk justified this increase. In effect, this created premiums that were higher than at other times over the past 40 years (up to 5 percent for an 85 percent loan). Metropolitan Council opposed this increase in April 1997, citing the negative impact on new rental construction. Recently, Mayor Lastman has requested that the Federal Government lower its mortgage insurance premiums to stimulate the building of rental housing (see Appendix). CMHC staff indicate that the premiums for new rental housing are now under review.

Conclusion:

This increase in mortgage insurance costs is disconcerting for two reasons:

First, it results in additional financing costs that landlords will eventually pass through to tenants as rent increases. This impact could not come at a worse possible time for the City of Toronto, with an affordable housing crisis and no construction of new rental housing. The City recently capped the property tax increases on multi-residential rental buildings at 2.5 percent to avoid just such an impact.

Second, it is extremely disconcerting that the Federal Government has not taken steps to use mortgage insurance as a tool to stimulate rental housing development. For example, mortgage insurance premiums should be reduced to encourage new rental housing. This announcement sends a message that the Federal Government has not considered the broader impact of its mortgage insurance program on the rental market in Toronto.

 Contact Name:

Rob Cressman

Tel: 392-0601/Fax: 392-0548, Email: rcressma@city.toronto.on.ca

--------

Appendix 1

Increase in Mortgage Insurance Premiums and Fees

As of January 1, 1999, the premiums for mortgage insurance related to the purchase of existing rental housing will increase as follows:

Loan to Value Current Premium Revised Premium

% % %

853.004.50

802.003.50

751.502.25

701.502.00

651.501.75

Underwriting fees will also be increased on January 1, 1999, for existing buildings, as follows:

Current Fees:New Fees:

$125.00 per unit for first 50 units$150.00 per unit for first 100 units

$50.00 per unit after$100.00 per unit after

$50.00 per bed$100.00 per bed

No minimumMinimum of $600.00 per loan

No maximumMaximum of $50,000.00 per loan

Appendix 2

Reducing Mortgage Insurance Premiums for New Rental Housing

Research has shown that reducing CMHC mortgage insurance premiums can contribute to the feasibility of building new rental housing. Mayor Mel Lastman has proposed that CMHC reduce the rate to approximately 1 percent of the value of the loan on private rental apartments.

The Metro Housing Stakeholder Panel (1997) held the view that instead of having all rental housing projects across Canada subject to the same premium, mortgage insurance premiums should be flexible based on risk. It was the understanding of the Panel and consultants that the mortgage defaults involved in CMHC's financial risk analysis which gave rise to the increased premiums, reflected risks greater than those likely to apply in rental housing development in Toronto today (1995). Given Toronto's continued economic growth since 1995, and soaring demand for affordable rental housing, it is likely that the risk remains low.

CMHC has not supported this proposal because mortgage insurance premiums represent a very small proportion of rental costs and would have a minimal impact on rental viability and affordability; and would not reduce rents by more than $10.00 per month. Reducing the premium by one-half would reduce the gap between market and economic rents by about 4 percent. Although the amount is small, what the CMHC response fails to recognize is that reducing premiums is just one part of a total package of measures which, when combined, can make rental housing development viable. As reported by the Housing Stakeholder Panel, the idea behind providing mortgage insurance at a modest costs and on reasonable terms is to help a project get affordable financing, and it is the affordable financing which contributes to the overall viability of the project. Although the direct contribution of reduced premiums is small, it is important.

In addition, it is CMHC's position that mortgage loan insurance under the National Housing Act already contributes to affordable housing by making it possible for rental housing investors with low down payments to obtain mortgage financing at prime interest rates. Although it is true that NHA mortgages help, the issue is really about whether or not the landlord can even get a mortgage.

(A copy of the news release referred to in the foregoing report was forwarded to all Members of Council with the agenda of the Community and Neighbourhood Services Committee for its meeting on December 3, 1998, and a copy thereof is on file in the office of the City Clerk.)

 6

Appointment to the Advisory Committee on

Homeless and Socially-Isolated Persons

(City Council on December 16 and 17, 1998, adopted this Clause, without amendment.)

The Community and Neighbourhood Services Committee recommends that Councillor Jane Pitfield be appointed to the Advisory Committee on Homeless and Socially Isolated Persons.

The Community and Neighbourhood Services Committee submits the following communication (November 6, 1998) from the City Clerk:

Purpose:

The purpose of this report is to refer to the Community and Neighbourhood Services Committee a request of Councillor Jane Pitfield, the newly-elected Councillor for East York, that she be appointed to the Advisory Committee on Homeless and Socially-Isolated Persons.

Funding Sources, Financial Implications and Impact Statement:

Not applicable.

 Recommendation:

It is recommended that the Community and Neighbourhood Services Committee give consideration to a request of Councillor Jane Pitfield, the newly-elected Councillor for East York, that she be appointed to the Advisory Committee on Homeless and Socially-Isolated Persons.

Council Reference/Background/History:

City Council at its meeting held on January 2, 6, 8 and 9, 1998, approved the recommendations in the final report of the Toronto Transition Team on an interim basis only, subject to certain amendments. Recommendation No. 38 embodied in such final report states, in part, that during the work of the Task Force on Homelessness:

"the current City of Toronto Alternative Housing Sub-Committee and the Metro Advisory Committee on Homeless and Socially-Isolated Persons should continue, and they should report to the Community and Neighbourhood Services Standing Committee."

The former Metropolitan Council established the aforementioned Advisory Committee on January 17, 1996, by its adoption, as amended, of Clause No. 1 of Report No. 1 of The Human Services Committee, headed "Establishment and Terms of Reference for the Advisory Committee on Services to Homeless and Socially Isolated Persons".

The former Metropolitan Council on November 20, 1996, revised the mandate and membership of the Advisory Committee by its adoption, without amendment, of Clause No. 4 of Report No. 15 of The Human Services Committee, headed "Advisory Committee on Homeless and Socially Isolated Persons".

Comments and/or Discussion and/or Justification:

We are in receipt of letter dated October 23, 1998, from Councillor Jane Pitfield, East York, advising of her interest in being appointed to the Advisory Committee on Homeless and Socially Isolated Persons.

Conclusion:

It is recommended that the Community and Neighbourhood Services Committee give consideration to the aforementioned request of Councillor Jane Pitfield, the newly-elected Councillor for East York.

Contact Name:

Joanne Hamill

Manager of Community Councils and Committees

Tel: 392-4339

7

Health and Safety Allocations for Hostels

(City Council on December 16 and 17, 1998, adopted this Clause, without amendment.)

The Community and Neighbourhood Services Committee recommends the adoption of the following report (November 20, 1998) from the Commissioner of Community and Neighbourhood Services:

Purpose:

To gain Committee and then Council approval to allocate funds to several shelters for their requested health and safety needs.

Funding Sources, Financial Implications and Impact Statement:

The funds for these hostel needs are provincial dollars that have been forwarded to City of Toronto Hostel Services for distribution to hostels that most need it to address their health and safety needs. Hence, there are no financial implications for the City.

Recommendations:

It is recommended that:

(1)Toronto Hostel Services be authorized to administer 100 percent provincial funds to hostels for minor capital needs;

(2)the allocation totalling $30,785.97 shown in this report be approved;

(3)80 percent of these amounts be advanced to the hostels as soon as required, with the remaining 20 percent released after the work is completed and appropriate expenditure documents have been submitted; and

(4)the appropriate City officials be authorized and directed to take the necessary action to give effect thereto.

Council Reference/Background/History:

In 1992, the Department entered into a legal agreement with the Ministry of Community and Social Services (MCSS) regarding discretionary minor capital allocations for community-based hostels. Under this agreement, year end money was made available to help hostels with items related to improved health and safety. Since 1992, the Province has made available to Hostel Services a total of $860,206.00. We have spent $793,682.66 on badly needed health and safety repairs. Presently, the Health and Safety fund has a remaining balance of $66,523.34.

The Ministry has assisted hostels with minor capital needs for many years. However, they have asked Hostel Services to assist with these allocations because we are in closer contact with these services and are more knowledgeable about their specific health and safety needs.

Again, these allocations have a zero net cost to the City.

Comments and/or Discussion and/or Justification:

Hostel Services is prepared at this time to proceed with four allocations totalling $30,785.97. This would leave $35,737.37 for other needs identified during the year. The four allocations we want to proceed with at this time are as follows:

(a)Council Fire$16,000.00

(smoke room, walk-in refrigerator)

(b)Sojourn House 2,117.40

(bunk beds ladders, sink, mattresses, paint

(c)Youth Without Shelter 1,005.57

(fire inspection work)

(d)YMCA House 11,663.00

(two Furnaces)

Total$30,785.97

Conclusions:

Hostel Services have met with each group and are satisfied that the above requests reflect their needs. We are pleased to be in a position to assist them in such times of restraint, at no cost to the City, and ask that these requests be approved.

Contact Name:

Joanne Campbell

General Manager of Shelter, Housing and Support Division

Tel: 392-7885/Fax: 392-0548

8

Children and Youth Action Committee -

Changes to Membership and Quorum

(City Council on December 16 and 17, 1998, amended this Clause by adding thereto the following:

"It is further recommended that the following revisions to the membership of the Children and Youth Action Committee be approved:

(1)Additional Members:

-Ms. Marg Cox;

-Ms. Maria deWit, as a replacement for Mr. Spyros Volonakis (Child Care Advisory Committee); and

-Ms. Kathryn Blackett, as a replacement for Ms. Valerie McDonald (People for Education);

(2)Alternate Members:

-Mr. Spyros Volonakis, as an alternate for Ms. Maria de Wit;

-Ms. Jasmin Earle, as an alternate for Ms. Marg Cox;

-Ms. Miriam Ben-Simon, as an alternate for Ms. Clara Will;

-Mr. Dan Clement, as an alternate for Ms. Collette Murphy (United Way);

-Ms. Gay Young and Ms. Diane Dyson, as alternates for Ms. Kathryn Blackett; and

-Ms. Karen Lieberman and Ms. Ellen Ostofsky, as alternates for Mr. Peter Clutterbuck (Social Planning Council of Toronto); and

(3)Deletions from Membership:

-Ms. Valerie McDonald;

-Mr. Wade Hillier; and

-Mr. Rod MacRae.")

The Community and Neighbourhood Services Committee recommends the adoption of the recommendations of the Children and Youth Action Committee embodied in the following communication (November 5, 1998) from the City Clerk:

Recommendations:

The Children and Youth Action Committee on October 26, 1998, recommended to the Community and Neighbourhood Services Committee that:

(1)the quorum for the Children and Youth Action Committee be reduced to nine members, representing 25 percent of the membership; and

(2)Trustees Elizabeth Boyd and Nora Donovan be appointed to the Children and Youth Action Committee as alternate representatives of the Toronto Catholic District School Board.

For the information of the Community and Neighbourhood Services Committee, the Children and Youth Action Committee also advises that it has requested those organizations who are members to submit names of alternate representatives who would represent them on the Committee in the absence of the designated member.

 9

Children and Youth Action Committee -

Request for Funds for Toronto Public Library Initiative

(City Council on December 16 and 17, 1998, adopted this Clause, without amendment.)

The Community and Neighbourhood Services Committee recommends the adoption of the recommendations of the Children and Youth Action Committee embodied in the communication dated November 5, 1998, from the City Clerk.

The Community and Neighbourhood Services Committee reports, for the information of Council, having requested the City Librarian to report to the Community and Neighbourhood Services Committee on the number of street youth that take advantage of the "Reaching Out With Young Voices" program.

The Community and Neighbourhood Services Committee submits the following communication (November 5, 1998) from the City Clerk:

Recommendations:

The Children and Youth Action Committee recommended to the Community and Neighbourhood Services Committee that:

(1)funds in the amount of $4,000.00 be authorized to cover the cost of printing 20,000 copies of a poster to encourage parents to read to their children; and

(2)funds in the amount of $3,000.00 be authorized for the project "Reaching Out With Young Voices" to encourage street youth to write their stories for publication in a booklet to be published in 1999.

The Committee advises that funds for this purpose are available in the Children and Youth Action Committee's Budget, Account Code CD200-G39951.

Background:

On October 26, 1998, Mr. Ken Setterington, Toronto Public Library, provided a verbal report on the following two initiatives of the Toronto Public Library:

-a poster campaign to encourage parents to read to their children; and

-a project, titled "Reaching Out with Young Voices", to encourage street youth to write their stories for publication in a booklet to be published in 1999.

The initiatives are outlined in the communications (October 9 and October 23, 1998) from Mr. Ken Setterington, Co-ordinator, Children and Youth Adult Services, East Region, Toronto Public Library.

The Committee's recommendations are noted above.

--------

(Communication dated October 25, 1998, from Mr. Ken Setterington,

Co-ordinator, Children and Young Adult Services,

East Region, Toronto Public Library, addressed to

Councillor Olivia Chow, Toronto Child and Youth Advocate)

I am writing to you as the Toronto Child and Youth Advocate with a poster campaign that the Toronto Public Library would like to embark on this year. The focus of the campaign is to encourage parents to read to their children. Well-known children's illustrator, Rosemary Wells, has given permission to use her artwork for this campaign. A sample copy of the poster is attached.

The campaign would cost $4,000.00 to print 20,000 full colour posters. The wordmark for the Toronto Public Library as well as the names of members of the Children and Youth Action Committee will be displayed at the bottom of the poster. The posters would be distributed through the Boards of Education, Day Care Centres, Libraries and Recreation Centres.

Thank you for considering this request.

--------

(Communication dated October 9, 1998, from Mr. Ken Setterington,

Coordinator, Children and Young Adult Services,

East Region, Toronto Public Library, addressed to

Councillor Olivia Chow, Toronto Child and Youth Advocate)

I am writing to you as the Toronto Child and Youth Advocate with a project that the Toronto Public Library would like to embark on this year. The project, "Reaching Out with Young Voices" will encourage street youth to write their stories for publication in a booklet to be published in 1999. The project will provide two young people the opportunity to work, gain valuable experience and also let youth on the streets and in shelters know that their stories are important.

The project requires $3,000.00 in funding from the Children and Youth Action Committee. A proposal with more details is attached. Please call me if you have any questions regarding this project.

Thank you for considering this request.

Reaching Out with Young Voices

Background:

"Young Voices" has been an annual publication of the North York Public Library. Stories and poems are submitted by teens for publication in a booklet produced in the spring. The 1999 publication will be the first amalgamated issue which will include submissions from teens living across the City. In order to reach out to teens living on the streets and in shelters in the City of Toronto an outreach program has been developed to get street youth interested in writing their stories for inclusion in the 1999 "Young Voices". The stories submitted by the street youth will also be produced in a book tentatively titled "Young Voices from the Street".

Proposal:

That funding be sought from the Children and Youth Action Committee to reach out to street youth; encourage them to visit the library, to participate in a writing workshop, to meet a well respected author for teens, to write their stories and see their stories published in "Young Voices from the Street and Young Voices".

Program:

A three-week program presented by the Toronto Public Library and the Children and Youth Action Committee will provide employment for two teens to promote the street youth writing program in teen shelters and to youth on the street during the end of November and the beginning of December.

The Toronto Public Library will host a writing workshop in a downtown location (Lillian H. Smith) for youth and encourage them to use the Community Learning and Information Centre to write their stories. A further workshop with author Diana Weiler (Governor General award winning author of popular teen fiction) will be held at the Toronto Reference Library on December 10th, which will be open to the general public.

Partnerships:

The teen programs currently operating in the City will be approached to provide assistance in promoting this program.

Outcomes:

-The two youth hired for the program will gain valuable work experience.

-The street youth will know that their stories are valued and further that they are valued.

-The street youth will know that the public library is their public library.

-The publication, "Young Voices from the Street" will be available in each library branch for borrowing.

"Young Voices" published in the spring of 1999 will include some of the entries from "Young Voices from the Street" so that a wider audience is made aware of the stories from youth on the street.

Budget:

The Toronto Public Library will cover the costs of administering the program. Additional funds will be sought from the Children and Youth Action Committee to cover the following costs:

Two youths to visit shelters and locations with street youth$1,600.00

to encourage them to participate in the program.

$800.00 each for three weeks (hours to be determined)

Writing Workshops, including refreshments and honorarium $400.00

for Canadian teen author.

Publication of 1,000 copies of "Young Voices from the Street"$1,000.00

Total:$3,000.00

 10

Other Items Considered by the Committee

(City Council on December 16 and 17, 1998, received this Clause, for information.)

(a)1999-2003 Capital Works Program - Community and Neighbourhood Services.

The Community and Neighbourhood Services Committee reports having recommended to the Budget Committee:

(1)the adoption of the following 1999-2003 Capital Works Programs:

Community and Neighbourhood Services Department:

-Homes for the Aged;

-Shelter Housing and Support;

-Social Services; and

Library Services;

(2)the adoption of the joint report dated November 26, 1998, from the Commissioner of Community and Neighbourhood Services and Chief Financial Officer and Treasurer recommending that the Site Redevelopment Project be approved as part of the 1999-2003 Capital Works Program of the Homes for the Aged Division, with 1999 cash flow in the amount of $2.0 million; and

(3)that, should the design of the St. Jamestown Recreation Centre be approved for inclusion in the Economic Development 1999 Capital Works Program by City Council during the Capital budget process, $150,000.00 also be included in the Library Services 1999 Capital Works Program for the design of the St. Jamestown Public Library.

The Community and Neighbourhood Services Committee had before it the following 1999-2003 Capital Works Programs and communications:

(i)Community and Neighbourhood Services Department:

-Homes for the Aged;

-Shelter Housing and Support;

-Social Services; and

Library Services;

(ii)(November 9, 1998) from the Chief Administrative Officer respecting the 1999-2003 Capital Works Program; providing an overview of the Capital Budget process; and summarizing the various issues and challenges currently faced by the City;

(iii)(November 11, 1998) from the Chief Financial Officer and Treasurer proposing a preliminary capital financing plan for the 1999-2003 Capital Works Program; and

(iv)(November 26, 1998) from the Commissioner of Community and Neighbourhood Services and the Chief Financial Officer and Treasurer respecting the Homes for the Aged 1999-2003 Capital Works Program; and recommending that the Site Redevelopment Project be approved as part of the 1999-2003 Capital Works program of the Homes for the Aged Division, with 1999 cash flow in the amount of $2.0 million.

--------

Councillor Pam McConnell, Don River, appeared before the Community and Neighbourhood Services Committee in connection with the Library Services 1999-2003 Capital Works Program and the inclusion of the design of the St. Jamestown Public Library in the 1999 Program.

(b)National Child Benefit Supplement Reinvestment Plan.

The Community and Neighbourhood Services Committee reports having:

(1)recommended to the Budget Committee:

(a)the adoption of the report dated November 18, 1998, of the Commissioner of Community and Neighbourhood Services, subject to amending Recommendation No. (2) to read as follows:

"(2)if the Province disallows the City of Toronto's strategy and the requested legal opinion prevents the City from granting money directly back to families on social assistance, the City develop a combined strategy whereby:

(i)the reinvestment of Municipal social assistance savings resulting from the implementation of the National Child Benefit Supplement would go directly to all families on social assistance through a shelter fund that requires the least intrusive administrative measures;

(ii)child care alternatives and service supports for children of low income families, including those families making the transition from Ontario Works into sustainable employment, be provided; and

(iii)any other enhanced reinvestment strategies, such as school nutrition programs, continue to be considered; and

(b)that City Council request the Association of Municipalities of Ontario to seek endorsement from its entire membership of the Region of York's resolution, and to pressure the Provincial Government to change its policy with regard to the National Child Benefit Supplement; and

(2)requested the City Solicitor to provide a legal opinion on the City's proposed strategy with respect to the National Child Benefit Supplement, in order to determine whether the City is able to develop its own child income program:

(i)(November 18, 1998) from the Commissioner of Community and Neighbourhood Services responding to the request of the Community and Neighbourhood Services Committee to explore alternative options for the reinvestment of Municipal social assistance savings resulting from the implementation of the National Child Benefit Supplement (N.C.B.S.) in Toronto; and outlining recommendations in regard thereto;

(ii)(November 4, 1998) from the City Clerk advising that the Children and Youth Action Committee on October 26, 1998, considered the report dated October 22, 1998, of the Commissioner of Community and Neighbourhood Services regarding the proposed reinvestment strategy for Municipal Savings resulting from the implementation of the National Child Benefit, and recommended to the Community and Neighbourhood Services Committee that City Council remind the Federal Government of the commitment to end child poverty in the year 2000;

(iii)(December 2, 1998) from the City Clerk advising that the Children and Youth Action Committee on November 23, 1998, recommended that the Community and Neighbourhood Services Committee find a way of keeping the National Child Benefit Savings in the pockets of social assistance recipients with children and further requested that this money not be clawed back from the families;

(iv)(December 2, 1998) from Ms. Anne Dubas, President, Canadian Union of Public Employees, Local 79, urging the Community and Neighbourhood Services Committee to endorse the Region of York's resolution and to work with other municipalities in efforts to convince the Province to reverse its clawback of the National Child Benefit; and

(v)(December 2, 1998) from Ms. Maria de Wit, Chair, Child Care Advisory Committee of Toronto, outlining the position adopted by the Advisory Committee at its meeting on December 2, 1998.

--------

The following persons appeared before the Community and Neighbourhood Services Committee in connection with the foregoing matter:

-Ms. Sue Cox, Daily Bread Food Bank; and submitted a paper, entitled "Hunger Hardship and Children in Toronto";

-Ms. Debbie Bridge, L.A.M.P., and Mr. Gavin MacLeod;

-Mr. Colin Hughes, Metro Campaign 2000; and submitted a brief in regard thereto;

-Ms. Sue Collis, Ontario Coalition Against Poverty;

-Mr. Mike Howard;

-Ms. Vicki McPhee, Riverdale for Kids;

-Ms. Cheryl MacDonald, Toronto Coalition for Better Child Care; and

-Ms. Michelle Adams; and submitted a brief in regard thereto.

(c)Defining Child Poverty in the City of Toronto.

The Community and Neighbourhood Services Committee reports having received the following report:

(November 20, 1998) from the Commissioner of Community and Neighbourhood Services responding to the request of the Community and Neighbourhood Services Committee for a report on various approaches to defining and describing levels of poverty; and recommending that the report be received for information.

(d)Children and Youth Action Committee - Workplan.

The Community and Neighbourhood Services Committee reports having endorsed the workplan of the Children and Youth Action Committee:

(November 5, 1998) from the City Clerk advising that the Children and Youth Action Committee on October 26, 1998, recommended that its workplan be endorsed.

(e)Report Sponsored by the Caledon Institute of Social Policy, Entitled "Early Years Project".

The Community and Neighbourhood Services Committee reports having referred the following communication to the Commissioner of Community and Neighbourhood Services for a report thereon to the Committee:

(November 5, 1998) from the City Clerk advising that the Children and Youth Action Committee on October 26, 1998, had before it a report (October, 1998), entitled "Early Years Project"; from Ms. Julie Mathien, which was sponsored by the Caledon Institute of Social Policy, and recommended that:

(i)City Council endorse the recommendations contained in the report sponsored by the Caledon Institute of Social Policy regarding the Early Years Project, which read as follows:

(1)the Federal Government take leadership in establishing a federal/provincial partnership to fund, implement and evaluate demonstration school-based integrated early childhood education programs for kindergarten-aged children; New Brunswick, because of its recent experience implementing kindergarten, and Quebec, due to its innovative early childhood reform, can provide particular provincial expertise;

(2)local and provincial jurisdictions responsible for curriculum and program continue to respect child development and the wishes of parents and practitioners regarding the content of early childhood education programs;

(3)regardless of new models, provincial and local jurisdictions with responsibility for education and child care, take steps to encourage communication and co-ordination between kindergarten and child care programs, especially those that share children; and

(4)provincial and local jurisdictions recognize that early childhood education programs require minimum number of trained staff to ensure quality and make the necessary regulatory and funding changes. Further, that they co-operate in providing "cross-over" in-service training in early childhood education at levels appropriate to both teachers and child care staff; and

(ii)the Child Care Research Committee be requested to examine a follow up study focussing on different jurisdictional models for child care, and design a communication strategy to promote the results of the study; and that the findings of the study be used as background for any future consultation on child care.

(f)Implementation of the Ontario Works Program as it Relates to Children.

The Community and Neighbourhood Services Committee reports having received the following communication from the City Clerk, having regard that a further report is forthcoming from the Commissioner of Community and Neighbourhood Services:

(November 5, 1998) from the City Clerk advising that the Children and Youth Action Committee on October 26, 1998, recommended that:

(1)Council direct the City Clerk to file a formal request under the Municipal Freedom of Information and Protection of Privacy Act for the actual costs of tracking and verifying the expenditure costs of informal child care under the Ontario Works Program; and

(2)the Commissioner of Community and Neighbourhood Services be requested to report back to the Children and Youth Action Committee on the City of Toronto's costs of administering informal child care under the Ontario Works Program.

(g)School Based Child Care Fact Sheet.

The Community and Neighbourhood Services Committee reports having received the following report:

(November 5, 1998) from the Commissioner of Community and Neighbourhood Services advising that, due to the recent announcement by the Provincial Premier regarding "a solution to school closure threats", it may not be necessary for the Community and Neighbourhood Services Department to continue providing updates on the school closure issue on a monthly basis; and noting that the Department will keep the Committee advised of the full impact of the Premier's announcement, and of any resulting change in the current status of the child care programs located in school facilities.

(h)Occupancy Update on Shelters.

The Community and Neighbourhood Services Committee reports having directed that:

(1)the Commissioner of Community and Neighbourhood Services be requested to:

(a)develop a Charter of Rights for Shelters providing a clear explanation of what the client might expect and what is expected of the client;

(b)undertake full consultation with all interested parties in the development of the Charter of Rights;

(c)ensure the Charter of Rights is posted in a prominent location in each shelter facility;

(d)establish a clear policy that standardizes specific rules across the City of Toronto on the barring regulations; noting that, whilst barring should be used as a last resort, safety should be a top priority for shelters;

(e)provide an annual report to the Community and Neighbourhood Services Committee on situations that caused barring of clients, especially those that are barred permanently, to ensure that operators implement the policy;

(f)report to the Community and Neighbourhood Services Committee on what measures can be put in place to enhance the quality of life for both residents and staff; and

(g)ensure that shelter policies are implemented evenly by operators;

(2)the Commissioner of Community and Neighbourhood Services be requested to provide a confidential report to the Chair of the Community and Neighbourhood Services Committee on the issues raised in the deputation by Mr. Karl Schmidt;

(3)the Chair of the Community and Neighbourhood Services Committee be requested to send an expression of appreciation to the Canadian Armed Forces for their assistance in providing Fort York Armoury as an emergency hostel; and

(4)its appreciation be expressed to all staff involved in bringing hostels on stream for December and January:

(i)(November 20, 1998) from the Commissioner of Community and Neighbourhood Services providing a brief occupancy update for the emergency shelter system;

(ii)(November 24, 1998) from Mr. John Clarke, Provincial Organizer, Ontario Coalition Against Poverty, requesting the opportunity to appear before the Committee with respect to matters related to the barring practices of homeless shelter facilities in Toronto;

(iii)a fact sheet from the Community Services Department providing an update on the opening dates of emergency shelter beds being added to the shelter system; and

(iv)a copy of the Hostel Standards.

--------

The following persons appeared before the Community and Neighbourhood Services Committee in connection with the foregoing matter:

-Mr. John Clarke, Provincial Organizer, Ontario Coalition Against Poverty;

-Ms. Wendy Forest;

-Mr. Gaetan Heroux;

-Mr. Karl Schmidt;

-Mr. Mark Grieveson; and

-Mr. Peter Rosenthal.

(i)Update on the Strategy to Create Affordable Housing and Demonstration Projects.

The Community and Neighbourhood Services Committee reports having:

(1)recommended to the Corporate Services Committee the adoption of the recommendation of the Council Strategy Committee for People Without Homes embodied in the following communication from the City Clerk; and

(2)directed that the Commissioner of Community and Neighbourhood Services and the Commissioner of Urban Planning and Development Services be requested to report to the Corporate Services Committee for its meeting on December 7, 1998, if possible, or directly to Council on December 16, 1998, on:

(a)the feasibility of a community design concept use for the northerly Grand Avenue site referred to in Recommendation No. (2) of the report of the Commissioner of Community and Neighbourhood Services;

(b)the need for open space on the southerly Grand Avenue site;

(c)an underpass for the Legion Road site; and

(d)dedication of the Legion Road site to the Toronto and Region Conservation Authority for open space:

(November 18, 1998) from the City Clerk advising that the Council Strategy Committee for People Without Homes on November 16, 1998, recommended the adoption of a report (November 12, 1998) from the Commissioner of Community and Neighbourhood Services providing an update on the strategy to create affordable housing and demonstration projects, and wherein it was recommended that:

(1)the Council Strategy Committee recommend to Council that the Lawrence/Allen Road (Ward 8) site continue to be held from sale and the Commissioner of Community and Neighbourhood Services be requested to report back by April 1999 on the results of the proposal call for transitional housing, as outlined in this report;

(2)the Council Strategy Committee recommend to Council that the two City-owned sites on Grand Avenue (Ward 2) continue to be held from sale; and that the Commissioner of Corporate Services be requested to expedite the soil remediation study now underway, and based on results of that study, the Commissioner of Community and Neighbourhood Services be requested to report back by April 1999 on the results of a proposal call for affordable rental and ownership housing as outlined in this report;

(3)the Council Strategy Committee recommend to Council that the Legion Road (Ward 2) site be released for sale, given that it is not suitable or feasible for affordable housing development;

(4)Council confirm the decision of the Council of the former City of Toronto of October 28, 1996, that the City-owned site at 419-425 Coxwell Avenue (Ward 26) and 331 Bartlett Avenue North (Ward 21) will continue to be used for affordable housing purposes and any proceeds from sale will be returned to the Social Housing Reserve Fund, as the site was obtained under Section 36 (now 37) density bonusing provisions of the Planning Act; and

(5)Council confirm the decision of the Council of the former City of Toronto of October 28, 1996, that the City-owned sites at 156 Munro Street (Ward 25) and 30 St. Lawrence Street (Ward 25) be used for affordable housing purposes; the City-owned site at 275 Ontario Street (Ward 25) continue to be retained by the City; and any proceeds from sale of these sites be returned to the Land Banking Fund of the former City of Toronto to help retire the debenture debt related to that fund.

--------

Councillor Irene Jones, Lakeshore-Queensway, appeared before the Community and Neighbourhood Services Committee in connection with the foregoing matter.

(j)Update on Eviction Prevention Strategies.

The Community and Neighbourhood Services Committee reports having received the following communication; and further having directed that the Commissioner of Community and Neighbourhood Services be requested to submit the final report on the success of the three programs, referred to in her report, to the Community and Neighbourhood Services Committee:

(November 18, 1998) from the City Clerk advising that the Council Strategy Committee for People Without Homes on November 16, 1998, directed that the report (November 12, 1998) from the Commissioner of Community and Neighbourhood Services providing a status report on the three eviction prevention programs currently being delivered with City of Toronto funding be forwarded to the Community and Neighbourhood Services Committee for information.

(k)Establishment of a Capital Revolving Fund for Affordable Housing and the Social Housing Reserve Fund.

The Community and Neighbourhood Services Committee reports having recommended to the Budget Committee, and the Strategic Policies and Priorities Committee, the adoption of:

(1)the recommendation of the Board of Directors of the City of Toronto Non-Profit Housing Corporation and the Board of Directors of The Metropolitan Toronto Housing Company Limited embodied in the following communication dated November 23, 1998, from the Corporate Secretary; and

(2)the joint report dated December 1, 1998, from the Commissioner of Community and Neighbourhood Services and the Chief Financial Officer and Treasurer:

(i)(November 23, 1998) from the Corporate Secretary, The City of Toronto Non-Profit Housing Corporation and the Metropolitan Toronto Housing Company Limited advising that the Boards of Directors on November 23, 1998, recommended the adoption of a report (November 16, 1998) from the Chief Operating Officer outlining recommendations with respect to the establishment of a Capital Revolving Fund for Affordable Housing and the Social Housing Reserve Fund; and

(ii)(December 1, 1998) from the Commissioner of Community and Neighbourhood Services and the Chief Financial Officer and Treasurer outlining recommendations with respect to the establishment of a Capital Revolving Fund for Affordable Housing and the redesignation of the Social Housing Reserve Fund.

(l)Pesticide Use.

The Community and Neighbourhood Services Committee reports having referred the following communication to the Commissioner of Community and Neighbourhood Services for a report thereon directly to Council for its meeting on December 16, 1998, for consideration with the Board of Health report on this matter.

(November 26, 1998) from Councillor Jack Layton, Chair, Environmental Task Force, attaching Clause No. 1 of Report No. 13 of The Board of Health, headed "Phasing Out Pesticide Use in the City of Toronto"; and recommending that the Community and Neighbourhood Services Committee endorse the recommendations of the Board of Health.

      Respectfully submitted,

CHRIS KORWIN-KUCZYNSKI,

Chair

Toronto, December 3, 1998

 (Report No. 12 of The Community and Neighbourhood Services Committee, including additions thereto, was adopted, as amended, by City Council on December 16 and 17, 1998.)