Development of Non-Profit Affordable Ownership Housing at Harrison Street and Lakeview Avenue Request for Proposals December 27, 2017 NOTICE TO POTENTIAL PROPONENTS REQUEST FOR PROPOSALS Development of Non-Profit Affordable Ownership Housing at Harrison Street and Lakeview Avenue Please review the attached document and submit your proposal to the address below by the closing deadline of 12:00 noon (local Toronto time) on March 28, 2018 Proposals will not be considered unless received by the date and time specified above and received at the address specified below. Submissions by facsimile or e-mail will not be accepted. January 19, 2018, 2:00 p.m. – 3:00 p.m. INFORMATION SESSION At Metro Hall, 7th Floor CCO Boardroom, Toronto March 14, 2018 at 4:00 p.m. All questions should be sent by email to Nadia Lawrence, DEADLINE FOR QUESTIONS (by email only) Housing Development Officer, Affordable Housing Office, at [email protected] Addenda will be issued with answers to questions raised in the Information Session and answers to questions received in ADDENDA writing. Addenda will be posted on the Affordable Housing Office Website www.toronto.ca/affordablehousing City Contact: Sean Gadon, Director, Affordable Housing Office Metro Hall, 7th Floor, 55 John Street, Toronto, ON, M5V 3C6 (t) 416-338-1143, (f) 416-392-4219 (e) [email protected] For convenience you may affix the following address label to the envelope(s) containing your submission. PROPONENT/COMPANY NAME Development of Non-Profit Affordable Ownership Housing RFP NAME at Harrison Street and Lakeview Avenue CLOSING DEADLINE 12:00 Noon (Local Toronto Time) March 28, 2018 Sean Gadon, Director DELIVER TO Affordable Housing Office, Metro Hall, 7th Floor 55 John Street, Toronto, ON, M5V 3C6 The City of Toronto will not be held responsible for submission documents submitted in envelope(s) that are not labelled in accordance with the above instructions. Development of Non-Profit Affordable Ownership Housing At Harrison Street and Lakeview Avenue Table of Contents 1.0 Introduction Page 4 2.0 The Site and Project Requirements Page 7 3.0 Summary Scope of Work and Responsibilities Page 10 4.0 Preparing a Proposal Page 13 5.0 Evaluation Criteria Page 20 6.0 Submitting Your Proposal Page 21 7.0 Evaluation and Approvals Page 22 8.0 List of Appendices Page 24 Request for Proposals: Affordable Housing at Harrison Street and Lakeview Avenue 3 1.0 INTRODUCTION The City of Toronto's Affordable Housing Office (AHO) is releasing this Request for Proposals (RFP) for the development of 13 affordable ownership homes on City lands in Ward 19 Trinity- Spadina. 146 & 150 Harrison Street and 50 & 54 Lakeview Avenue ("the Site") have a total area of approximately 1.3 acres. The Site is located on the northwest corner of Harrison Street and Dovercourt Road just north of Dundas Street West and extends to include frontage on Lakeview Avenue. Currently on the site is a vacant two-storey building that was formerly the location of Toronto Police Services (TPS) 14 Division. This building is intended to be demolished by the City in the coming months. The Toronto Parking Authority (TPA) operates a public parking lot at 146 Harrison Street and has recently expanded the lot to incorporate parts of the former Police station's parking lot. Once redeveloped, the Site will include a new park to be built by the City's Parks, Forestry and Recreation Division (PF&R) and a redesigned TPA parking lot. Three parts of the Site will be provided for the development of the affordable homes ("the Housing Sites"). The Site is zoned for residential use and the Draft Reference Plan at Appendix 5 Site Details E outlines the blocks proposed for the various uses. The Parts on the Draft Reference Plan which are intended for housing are parts 2, 4, 5, 8, 11 and 13. Through this RFP, the City is seeking an experienced and capable non-profit organization to plan and build the homes, as well as deliver an on-going, long-term Affordable Home Ownership Program. The long-term affordability component means the City is seeking a group with a viable plan to keep the homes affordable from one homeowner to the next. The Successful Proponent is expected to keep the homes affordable for fifty (50) years (the "Affordability Period"), but Proposals for longer or perpetually affordable homes are encouraged. The development of the Site will assist the City of Toronto in delivering new affordable homes in support of the objectives, goals and targets of its 10-year affordable housing action plan Housing Opportunities Toronto 2010 –2020. In 2016, the City Council approved the new five-year Open Door Affordable Housing Program. The program is intended to scale up City efforts to achieve Toronto’s targets of creating 5,000 new affordable rental homes and 2,000 affordable ownership homes for low and moderate- income residents. The Site was designated through the Open Door Program as a surplus City site for new affordable housing. The Proponent's planning application will be assessed for eligibility for City Planning's expedited Open Door Planning Service. The City of Toronto will make available home ownership assistance funding from Federal/ Provincial and City sources ("Program Loans"). Assuming the continuation of the Federal- Provincial Investment in Affordable Housing Program - Homeownership Component (IAH), up to $50,000 per home, or a total of $650,000 for the 13 homes will be made available to support the affordability of the homes. The City will also provide up to $325,000, or $25,000 per home, from its Home Ownership Assistance Program (HOAP). Request for Proposals: Affordable Housing at Harrison Street and Lakeview Avenue 4 The value of the land and the Program Loan funding will be secured by mortgage charges on the homes. These mortgages will be due at the end of the Affordability Period. This RFP document reviews the key responsibilities of the Successful Proponent, the City's expectations with respect to the offer to sell the Site, the RFP submission process and how the City will decide on a Successful Proponent. The attached appendices contain, among other things, the legal agreements the Successful Proponent will sign with the City, which provide detail on the various terms and conditions. The deadline to submit a Proposal is March 28, 2018 at 12:00 p.m. (noon). All other key dates are listed in the Timetable under section 1.3. Please note: There is no “fee for service” associated with this RFP. All costs associated with submitting this proposal, entering into the legal agreements, delivering the Affordable Home Ownership Housing and Program Loans, and administering the related mortgage charges during the Affordability Period, must be absorbed by the Successful Proponent. 1.1 City Priorities for the Housing Sites The City's priorities for this RFP are to select the best Proponent that will:  Build good-quality affordable ownership housing;  Work with eligible purchasers to ensure the successful transition into homeownership;  Efficiently and effectively deliver new affordable ownership homes and down payment assistance to eligible purchasers;  Ensure that construction starts in a timely manner, and;  Allow for on-going, long-term or perpetual affordability from one eligible homeowner to the next. 1.2 Who Should Apply The City is requesting proposals from not for profit Proponents who have the following:  A demonstrated track record developing good quality, cost efficient, modestly-priced housing, on time and on budget;  A demonstrated track record delivering affordable home ownership initiatives in the City of Toronto; Request for Proposals: Affordable Housing at Harrison Street and Lakeview Avenue 5  Strong development, marketing, administrative, management, organizational experience and financial capabilities, either in-house or through an assembled team;  The ability to obtain municipal approvals and develop the homes in consultation with City Planning and PF&R, and the TPA for the park and parking lot uses, and;  A viable plan for the successful delivery of a long-term affordable home ownership assistance model that can incorporate government Program Loan funding. Preference will be given to Proponents who can deliver affordable ownership housing for more modest income households while providing appropriate homebuyer supports and safeguards. Proponents who bring significant financial and other resources to the development of the homes, especially resources that further reduce the cost of the homes and address the needs of home purchasers, will also be preferred. 1.3 Timetable RFP issued December 27, 2017 Voluntary Information Meeting January 19, 2018, 2:00 p.m. – 3:00 p.m. At Metro Hall, 7th Floor 55 John Street CCO Boardroom All questions should be sent by email to Nadia Lawrence, Housing Development Officer, Affordable Housing Office, at [email protected] Addenda will be issued with answers to questions received by email and will be posted on the Affordable Housing Office Website: www.toronto.ca/affordablehousing Deadline for written questions from March 14, 2018 Proponents Final addendum (if any) March 21, 2018 RFP submission deadline, closing 12:00 noon March 28, 2018 Deliver to: Sean Gadon, Director Affordable Housing Office Metro Hall, 7th Floor 55 John Street Toronto, ON, M5V 3C6 Successful Proponent Notified May 7, 2018 Report to Executive Committee on RFP May 14, 2018 Results (Public Participation is permitted at this meeting) Report to City Council on RFP Results May 22, 23 & 24, 2018 Request for Proposals: Affordable Housing at Harrison Street and Lakeview Avenue 6 This schedule is subject to change and appropriate notice in writing of any changes will be provided, where feasible, on the Affordable Housing Office website: www.toronto.ca/affordablehousing 2.0 THE SITE AND PROJECT REQUIREMENTS 2.1 The Community and the Site The Site is located between Dovercourt Road and Lakeview Avenue just north of Dundas Street West, and is bounded by Harrison Street to the south and abutting residential properties to the north and east. It is located in the Trinity Bellwoods neighbourhood in Ward 19 Trinity-Spadina. Ward 18 Davenport and the Little Portugal neighbourhood are directly to the west across Dovercourt Road. Links to ward and neighbourhood information are available at Appendix 4. Two large City parks, Trinity Bellwoods and Dufferin Grove, are nearby. The Site is in an established residential area with some institutional and small-scale commercial/retail buildings. The Site offers excellent recreational and retail amenities and transit access with streetcars along Dundas Street West as well as local bus routes. The Site was acquired in portions between 1963 and 1968 by the former Municipality of Metropolitan Toronto for the construction of a police station. Additional land at 50 and 54 Lakeview Avenue was also acquired by TPS for parking in 1978. The approximately 1.3 acre Site has an irregular shape with the following approximate frontages: 67 metres on Harrison Street, 61 metres on Dovercourt Road and 15 metres on Lakeview Avenue. Appendix 5 contains maps, planning information and other details related the Site. There are a number of mature trees on the Site and the City is arranging for an arborist's report. The former TPS building on the Site is vacant, following the division's move to a new station at 350 Dovercourt Road. In order to prepare the Site for development, the City will demolish the existing building and is co-ordinating the Site's environmental assessments and remediation. The AHO will continue to work with PF&R, TPA and other City divisions to undertake this work in parallel with the RFP process and planning for the Site. The demolition of the building is expected in the first quarter of 2018. 2.2 Planning and Zoning Information The City of Toronto's Official Plan designates the Site as "Neighbourhoods", which contemplates low scale residential uses, local servicing commercial and institutional uses and/or public park and open space uses. A link to the Official Plan is provided in Appendix 5 Site Details A. The Site is subject to the former (pre-amalgamation) City of Toronto Zoning By-law 438-86 as amended and is zoned R2 Z0.6. The Site is also subject to City-wide Zoning By-law 569-2013 as amended where it is zoned R (d0.6) (x729). The current zoning permits a range of Request for Proposals: Affordable Housing at Harrison Street and Lakeview Avenue 7 residential uses subject to various performance criteria. Links to the zoning by-laws are also in Appendix 5 Site Details A. The Draft Reference Plan and Site Concept Plan at Appendix 5 Site Details E and F outline the blocks proposed for the various uses and enlargeable versions of these documents can be found online. The blocks proposed for the various uses have been delineated in consultation with City Planning, PF&R, the TPA, AHO and the local Councillor. The Housing Sites constitute three residential development blocks with the potential for 11 townhomes and two semi-detached homes. Seven townhomes are proposed facing Dovercourt Road, four townhomes for the Harrison Street block and two semi-detached homes for the Lakeview Avenue frontage. There is support at the City for this order of density and if revisions are requested they are to be minor in nature. Proponents are strongly encouraged to meet with City Planning to discuss the planning aspects of their proposals. The City Planning contact for the Site is Planner Aviva Pelt. Ms. Pelt is available at 416-392-0877 or [email protected]. The City anticipates that parking for the 13 affordable homes will be provided by way of access to the adjacent TPA parking lot, rather than integral garages, carports or driveways associated with the homes. Details of the parking access arrangement will be formalized with the TPA. The AHO will work with the Successful Proponent, City Planning, the TPA, PF&R, and other City staff as needed, on the planning approvals and over-all redevelopment of the Site. The Open Door Planning Service to expedite City Planning's development application review will be available to eligible proponents. It is anticipated that the TPA and PF&R will proceed with the planning and development of their respective portions of the Site. If necessary, the hiring of a planning consultant to co-ordinate approvals for the various uses will be considered. 2.3 Environmental Status and Demolition The costs leading up to the filing of a Record of Site Condition (RSC) and the demolition of the existing building will be borne by the City and both will be completed prior to the transfer of title to the Successful Proponent. A Phase 1 Environmental Site Assessment (ESA) was initiated in September 2017 and Areas of Potential Environmental Concern have been identified as a result of historical uses. A Phase 2 ESA and related work on the Site is underway. When the initial Phase 2 ESA is complete, the City will determine the remedial action plan and the most appropriate course of action. An RSC will be filed with the Ministry of the Environment and Climate Change (MOECC) due to the proposed change of use to residential. Links to the Phase 1 ESA can be found in Appendix 4 and the results of the Phase 2 ESA and remedial plan will be shared with the Successful Proponent when available. Request for Proposals: Affordable Housing at Harrison Street and Lakeview Avenue 8 2.4 Legal Agreements and the Sale of the Housing Sites to the Successful Proponent Subject to City Council approvals, the Housing Sites will be transferred to the Successful Proponent after the RSC is filed. The Offer to Purchase the property from the City is attached as Appendix 3. Applicants should carefully review the Offer to Purchase before applying to this RFP. In applying to this RFP, the applicant has agreed to the terms as set out in the Offer The Successful Proponent will be required to execute the Offer to Purchase within seven business days of the date of the letter, sent from the Director, Affordable Housing Office, informing it that it has been selected and approved by City Council. Execution copies of the Offer to Purchase will be included with the letter. Closing of the Offer to Purchase will occur within 30 days of the filing of the RSC. Attached to the Offer to Purchase is the City's funding agreement (Schedule B the "Delivery Agreement"). The Delivery Agreement sets out the terms and conditions of the City providing the Housing Sites and Program Loan funding to support the development and eligible purchasers. The Delivery Agreement includes reporting requirements, marketing, general obligations of the Proponent and accountability to the City. In addition, it requires that the funding and value of the Housing Sites be secured by a charge on the property, in favour of the City. Title to the Housing Sites will be subject to a restriction which will control, but not preclude dealing with the property. The Delivery Agreement addresses affordable home ownership Program Loan funding from Federal/ Provincial and City sources. Details of the Successful Proponent's Affordable Home Ownership Program, particularly with regard to on-going long-term affordability, may be incorporated in the Delivery Agreement prior to execution. Applicants should carefully review the terms of the Delivery Agreement before applying to this RFP. In applying to this RFP, the applicant has agreed to the terms as set out in the Offer to Purchase and the Delivery Agreement. Pursuant to paragraph 5.4 of the Offer to Purchase, the City will provide the Successful Proponent with an up-to-date survey of the Site. Proponents are reminded that until the Offer to Purchase has been accepted by the City and the Delivery Agreement has been executed by the City, the City and City staff will have no obligations, direct or indirect, to Proponents in respect of this RFP. The Project details may be refined, issues may be prioritized, Proponent responsibilities may be modified or amended, and issues concerning implementation may be clarified by the City. 2.5 Design Guidelines and other Regulations In addition to meeting City Planning and Toronto Building requirements, Proposals should address the following: Request for Proposals: Affordable Housing at Harrison Street and Lakeview Avenue 9  City of Toronto Design Guidelines – Guidelines are available for various development forms including Infill Townhouses. The website for the Infill Townhouse Design Guidelines is listed in Appendix 4.  City of Toronto Green Standard – The standard requires projects to be sustainable and meet energy efficiency requirements. The website for the Green Standard is listed in Appendix 4.  Federal-Provincial Investment in Affordable Housing Program Guidelines - These guidelines outline federal-provincial requirements for funding under the current program. A link is also in Appendix 4. 3.0 SUMMARY SCOPE OF WORK AND RESPONSIBILITIES The Section provides a summary overview of the scope of work associated with the Affordable Home Ownership Program the City is seeking to implement on the Site, along with some details worthy of highlighting. The specific requirements of a Proposal are in the following Section, Preparing a Proposal and are detailed in the terms of the Offer to Purchase and Delivery Agreement at Appendix 3. 3.1 Responsibilities of the Successful Proponent The Successful Proponent's scope of work will involve the planning and development of the new homes and the long-term delivery of home ownership assistance to eligible home buyers. This overall scope of work constitutes the Successful Proponent’s Affordable Home Ownership Program and includes the on-going administration of the homes' affordability so that they remain affordable from one eligible purchaser household to the next. Planning and Building Affordable Ownership Housing: The Housing Development Plan The City’s land and funding is intended to support good quality, cost-effective, new home construction. The Successful Proponent will be responsible for all planning and development- related approvals related to the homes and should have a sound and comprehensive financial plan for the development's overall success. The $325,000 in HOAP funding will be available to contribute to pre-development or development costs. The Successful Proponent's responsibilities related to the planning and development processes includes but are not limited to:  Effective co-ordination with City Planning, Toronto Buildings, TPA, PF&R, AHO and other City staff, as necessary, in relation to the multi-use nature of the Site’s redevelopment; Request for Proposals: Affordable Housing at Harrison Street and Lakeview Avenue 10