Ministry of Housing Ministre du Logement

Minister Responsible for the Ministre responsable de la stratgie

Poverty Reduction Strategy de rduction de la pauvret

Office of the Minister Bureau du ministre

th
777 Bay Street, 17 Floor
Toronto ON M5G 2E5
Tel. 416-585-6500
Fax 416-585-4035
777, rue Bay, 17e tage
Toronto ON M5G 2E5
Tl. 416-585-6500
Tlc. 416-585-4035

17-73997

June 5, 2017

Your Worship
Mayor John Tory
City of Toronto
Second Floor, 100 Queen Street West
Toronto, ON M5H 2N2

Dear Mayor Tory:

In Ontario, we know that the measure of any governments priorities can be found in where it
chooses to invest, and that the quickest way to overcome a challenge is by working together.

Were hard at work delivering on that vision in the City of Toronto, through historic ongoing
commitments and through new initiatives laid out in the 2017 Ontario Budget. Added together,
no other provincial administration in history has invested more in the City of Toronto than the
government led by Kathleen Wynne.

Housing

As the Minister of Housing for the entire province, I know there is need in communities across
Ontario and that municipalities cannot meet that need on their own. Thats why Ontario has
invested over $5 billion in affordable housing the largest affordable housing investment in the
provinces history. Of this the City of Toronto has received $1.4 billion in Toronto. Our Province
wide investments have helped create over 20,000 affordable housing units and more than
275,000 repairs to social and affordable housing units.

To further assist municipalities with social housing repairs, the province has invested $82 million
through the provincial Social Housing Apartment Retrofit Program (SHARP) in 2016-17. Toronto
received $43 million of this investment for repairs and retrofits to social housing buildings,
including $28 million for Toronto Community Housing properties, all of which are now underway.

As laid out in the balanced 2017 Provincial budget, were also providing up to $500-million
through the Climate Change Action Plan to restore and renovate social housing across the
province. Of this investment, Toronto will receive $130 million, bringing Ontarios five-year
contribution to social housing in Toronto to $173 million.

Over the next three years, were also investing $600 million in affordable and
sustainable housing to help shoulder broader challenges faced by Toronto, while freeing
up provincially owned lands worth up to $100 million to build more affordable housing in
the City.
/2
 -2-

Of course, housing challenges like Torontos cant be solved by any one government
alone. I welcome Toronto City Councils ten-year commitment of $200 million in funding
and tax exemptions to Toronto Community Housing to address an important piece in
Torontos broader housing equation.

While we continue to outpace the commitments of our federal partners, having the
federal government at the table is also important. Their recent commitment of $11 billion
over 11 years, divided among Canadas ten provinces and three territories, is a good
first step to matching Ontarios leadership in responding to the affordable housing needs
of the province. While these funds remain unallocated, province-wide and for Toronto, I
will continue to fight for a significant portion to be invested in Ontario and the City of
Toronto.

It is my firm belief that by working together, we can deliver important action to ensure
every family has an affordable place to live in the city they call home.

Transit

Housing is not the only area our government is supporting the priorities of the people of this
province. We are in the fourth year of our plan to invest $190 billion in public infrastructure over
13 years, which is the largest infrastructure investment in Ontarios history.

For residents of Toronto, that means $12 billion for transit projects alone including Smart Track,
Eglinton Crosstown LRT, Scarborough Subway, Union-Pearson Express, and the new TTC
streetcars. These are major projects that are under construction or in the planning stages, and
importantly, made possible by a provincial government that has contributed more than 70% of
their costs.

Just last week, my colleague Minister Del Duca joined Mayor Tory and federal Minister Ahmed
Hussen to reaffirm our shared commitment to the Downtown Relief Line. This is a crucial priority
for the residents of Toronto and our governments $150 million funding commitment, combined
with $31 million from the City of Toronto and $27 million from the federal government, is helping
move this project forward.

We will continue to work with the federal government and Toronto to determine how
federal and City infrastructure commitments can leverage Ontario's historic
infrastructure investments to fund new projects.

Sustainable Funding

As my colleague Minister Sousa shared in a post-budget letter to all Toronto City Councillors in
May, Ontario is also answering the Citys call for new revenue tools. As he shared then, we are
providing the City with the ability to implement both a new vacancy tax and a hotel tax.

Starting in 2019, were also doubling the municipal share of the provincial Gas Tax Program,
from two cents per litre to four cents by 2021. This will bring in $340 million annually to the City
once fully implemented. That represents $171 million more each year to provide predictable,
long-term funding to support Torontos transit needs.

/3
 -3-

As Minister Sousa has noted, this is more than the original amount of revenue the City projected
it would receive through the introduction of road tolls, without the City having to incur the
associated administration costs. This is the biggest expansion of the Gas Tax Program in
Ontarios history.

Last year alone, the city generated an estimated $653 million through its harmonized Land
Transfer Tax. That is significant annual revenue that no other municipality in Ontario receives.

Each of these funding injections are above and beyond $530 million in savings to the City in
2017 thanks to provincial uploads of costs for the Ontario Drug Benefits Program, Ontario
Disability Support Program, Ontario Works Benefits and Court Security and Prisoner
Transportation costs.

By removing cost burdens from the City while injecting much needed investments into priority
projects, the province is more than pulling its weight in making Toronto an even better place to
call home and put down roots.

As I said at the beginning of this letter, we know that the measure of any governments priorities
can be found in where it chooses to invest. Our governments commitment to the City of Toronto
and its people is demonstrated by our historic record of investment and our forward-looking plan
for the future.

I truly believe that the quickest way to overcome a challenge is by working together. Our
government is committed to working with both the federal government and the City, to deliver on
existing projects and to collaborate on new solutions to address the needs of Toronto.

I look forward to continuing that partnership with you and delivering on the priorities of the
people of Toronto.

Sincerely,

Chris Ballard
Minister

c: The Honourable Charles Sousa, Minister of Finance

The Honourable Steven Del Duca, Minister of Transportation