2021.PH26.4

Background

The Rapid Housing Initiative (RHI) is a federal capital funding program which aims to create new affordable rental housing within a 12-month timeframe for vulnerable and marginalized people experiencing or at risk of homelessness. The second phase of RHI was announced by the Government of Canada on June 30, 2021 and will deliver $1.5 billion in grant funding nationally to support the construction of more than 4,700 units across Canada. This funding will be delivered through the Canada Mortgage and Housing Corporation (CMHC), and will support the creation of new permanent affordable housing units through funding the construction of new rental housing, as well as the acquisition of land, and the conversion/rehabilitation of existing buildings to affordable housing. This builds on the $1 billion invested nationally in late 2020 for the first phase of the RHI which allocated $203 million under the Major Cities stream to Toronto and will create an estimated 540 new affordable rental homes. 

On July 29, 2021, the Government of Canada announced Toronto's allocation for Phase Two of approximately $132 million under the 'Cities' stream with a requirement to create a minimum of 233 new units of affordable rental housing. In addition to this guaranteed allocation, working with Indigenous and non-profit housing providers, the City has updated and resubmitted Phase One unfunded projects for consideration under the Phase Two 'Projects' steam, representing a total of almost 1,000 potential new units of affordable housing. Submissions under the 'Projects' stream compete nationally and final decisions on successful bids are expected in late October, 2021. 

Source: City of Toronto

Item Description

The Executive Director, Housing Secretariat, and Executive Director, Corporate Real Estate Management recommend that: 

RHI Phase Two 

1. City Council authorize the Deputy City Manager, Community and Social Services, to enter into a Contribution Agreement under the Rapid Housing Initiative (the "Contribution Agreement") and/or related agreement(s) and amendments with the Canada Mortgage and Housing Corporation, the Government of Canada or any other federal entity necessary for the receipt and expenditure of funding under Phase Two of the Rapid Housing Initiative ("RHI Phase Two") on such terms and conditions as are satisfactory to the Executive Director, Housing Secretariat, in consultation with the Executive Director, Corporate Real Estate Management, and in a form approved by the City Solicitor. 

2. City Council approve the receipt of the RHI Phase Two program funds, in accordance with the terms and conditions of the Contribution Agreement and any related agreements, directives or program guidelines. 

3. City Council approve an allocation of $132,151,611 (net $0) fully funded from the RHI Phase Two to the Capital Revolving Reserve Fund for Affordable Housing (XR1058) to be overseen by the Executive Director, Housing Secretariat and used to support the acquisition by the City of real estate interests suitable for the RHI Phase Two, the purchase of modular housing, related pre-development and pre-construction costs (e.g. community engagement, planning, communications, environmental site assessments, cost consultant reports, permits, architectural or engineering reports, appraisals, legal/closing costs related to acquisition of land and buildings) and all other costs permitted under the RHI Phase Two to secure and develop affordable housing, in each instance on terms satisfactory to the Executive Director, Housing Secretariat and the Executive Director, Corporate Real Estate Management. 

Source: City of Toronto

Proposed by

Planning and Housing Committee