City affordable housing projects should be rent controlled, Mayor John Tory says

Thestar.com
May 27, 2020
Jennifer Pagliaro

Mayor John Tory says affordable housing projects that get city investment should be rent controlled.

He made the statement while announcing the second phase of his signature housing plan, Housing Now, at city hall on Tuesday.

The second phase of the plan would offer six new city-owned sites for development in exchange for a certain number of moderately to deeply affordable units being offered by the developer. City staff recommended expediting the second phase in a report released Monday. Council will debate the plan at a meeting Thursday.

The six sites build on 11 previously-approved sites with nearly 11,000 new units and 3,900 being affordable -- or just over a third of the proposed units.

Some of those sites have been held up after staff were asked by council to come back with a report about rent control in November but never did.

“Now that we have announced these sites, the pressure is on to get that work completed,” Tory said, adding the report would be ready shortly. “There will be a measure of rent control on theses projects going forward because I think we all believe -- the council will have to approve it -- but we believe it is fair in the context of public land being used for these developments to have them included in a form or rent control even though they might not technically be under provincial law.”

The issue of rent control at buildings with city investment has been contentious since Coun. Josh Matlow (Ward 12 Toronto-St. Paul’s) asked council in January 2019 to impose rent controls on properties in the Housing Now program, built into the request for proposals.

Tory voted in favour of that motion, but all but one of his executive committee -- his inner circle on council -- voted it down and the motion lost 12 to 14.

In November, council agreed to ask for a report back in January 2020 on requiring rent control where there are city incentives, and that no RFPs be issued until that report is received. That report has been delayed since then.

City staff told the Star Tuesday that the report is expected to be tabled at the June planning and housing committee.

The second phase of Housing Now is significantly smaller in scope than the first and would see just 1,455 to 1,710 total units built and 530 to 630 affordable -- just over a third. If approved, most of the new units will be purpose-built rental. Another 470 to 495 would be ownership units.

Staff initially published a report with recommendations without identifying the potential sites, saying further due diligence was needed. Tory then announced the sites on Tuesday. They are:

• 2444 Eglinton Ave. E.
• 1627 & 1675 Danforth Avenue
• 1631 Queen Street East
• 405 Sherbourne Street
• 150 Queens Wharf Road

Despite the short notice between the sites being made public and the upcoming council meeting, Tory said he’s confident council understands the “urgency” of getting these sites approved.

The second phase includes a CityPlace site that was previously identified to be part of the Open Door affordable housing program -- which offers financial incentives to developers to construct housing with a certain percentage being affordable. Tory made the announcement standing on that site in 2015.

City staff, when asked by the Star Tuesday, said the initial project was “unsuccessful due to various challenges” but did not elaborate.

According to information provided by chief planner Gregg Lintern, only one of the original 11 sites in phase one is expected to open later this year. Others remain at the planning phase or yet to be tendered.

Tory also called on the other levels of governments to offer up surplus land to city affordable housing programs, noting the federal government has not provided a single site “despite their extensive land holdings within the city of Toronto.”

Council earlier set a target of building 40,000 new affordable units over the next decade, half of them at the city’s expense.