Bill 37 2001
An Act to create
by enabling municipalities
to offer incentives
for development and
redevelopment of properties
Her Majesty, by and with the advice and consent of the Legislative Assembly of the Province of Ontario, enacts as follows:
1. The Municipal Act is amended by adding the following section:
Affordable housing programs, projects
111.1 (1) Despite section 111, the council of a municipality may, in accordance with a by-law made under subsection (2), grant assistance for the development, repair, rehabilitation, improvement or conversion of real property to be used for affordable housing in the municipality.
(2) The council of a municipality may by by-law,
(a) define "affordable housing" for the purpose of the application of this section to the municipality and establish criteria against which affordable housing proposals may be assessed by the council in determining whether to grant assistance under this section;
(b) authorize the establishment by the municipality of, or participation by the municipality in, an affordable housing project in the municipality, subject to such conditions as the council considers appropriate;
(c) establish and maintain a program to grant assistance by any means in subsection (3) for the development, repair, rehabilitation, improvement or conversion of real property to be used for affordable housing in the municipality;
(d) establish a local board to administer a program created under clause (c) or to administer a municipality's participation in an affordable housing project referred to in clause (b).
Acquisition and leasing of land, etc.
(3) Despite section 111, the council of a municipality may, for the purpose of granting assistance under a program referred to in clause (2) (c),
(a) acquire land and erect and improve buildings and structures;
(b) make grants;
(c) enter into leases of real property with any person;
(d) enter into any agreements with any person;
(e) sell, lease or otherwise dispose of any of the personal property of the municipality to any person or provide for the use of that property by any person;
(f) provide for the use of the services of any of the employees of the municipality by any person; and
(g) give a total or partial exemption from any levy, charge or fee.
Grant includes loans
(4) The power to make grants under clause (3) (b) includes the power to make loans, to charge interest on the loans and to guarantee loans.
(5) Where a municipality makes a loan under clause (3) (b) to an owner of real property used or to be used for the purpose of an affordable housing project under clause (2) (b), the amount of the loan, together with interest, may be added by the clerk of the municipality to the collector's roll and collected in like manner as municipal taxes over a period fixed by council, and such amount and interest shall, until payment thereof, be a lien or charge upon the land in respect of which the loan has been made.
Registration of certificate
(6) A certificate signed by the clerk of the municipality setting out the amount loaned to an owner referred to in subsection (5), including the rate of interest thereon, together with a description of the land in respect of which the loan has been made, sufficient for registration, shall be registered in the proper land registry office against the land, and upon repayment in full to the municipality of the amount loaned and interest thereon, a certificate signed by the clerk of the municipality showing such repayment shall be similarly registered, and thereupon the lien or charge upon the land in respect of which the loan was made is discharged.
(7) As an alternative or in addition to adding the amount of the loan and interest to the collector's roll and registering a certificate in respect thereof as provided in subsections (5) and (6), the municipality may take from the owner a promissory note as security for the repayment of the amount loaned and interest thereon.
Availability of assistance
(8) Despite section 111,
(a) a lease of real property under clause (3) (c);
(b) a sale, lease or other disposition of personal property under clause (3) (e); or
(c) the use of personal property or the services of employees of a municipality under clauses (3) (e) and (f),
may be made or provided for at less than fair market value.
(9) The following provisions apply to a local board established under clause (2) (d):
1. The local board is a body corporate and shall consist of such number of members as the council of the municipality may determine.
2. A person is disqualified from being a member of the local board unless the person is qualified to be elected as a member of the council of the municipality.
3. Members shall hold office until the expiration of the term of the council that appointed them and until their successors are appointed and are eligible for reappointment.
4. After the coming into force of the by-law under clause (2) (d), all the powers, rights, authorities and privileges conferred and the duties imposed on the council of the municipality by this section shall be exercised by the local board but subject to such limitations as the by-law may provide.
5. The local board shall submit to the council of the municipality its estimates for the current year at the time and in the form prescribed by council and make requisitions on the council for all sums of money required to carry out its powers and duties, but nothing in this paragraph divests the council of its authority with reference to providing the money for the purposes of the local board and, when money is provided by the council, the treasurer of the municipality shall, on the certificate of the local board, pay out such money.
6. On or before March 1 in each year, the local board shall submit its annual report for the preceding year to the council of the municipality, including a complete, audited and certified financial statement of its affairs, a balance sheet and a revenue and expenditure statement.
7. The municipal auditor shall be the auditor of the local board and all books, documents, transactions, minutes and accounts of the local board shall, at all times, be open to the auditor's inspection.
8. The power, right, authority and privilege of the council to raise money by the issue of debentures or otherwise for the acquisition of land or construction of buildings shall not be transferred to the local board.
9. On the repeal of the by-law establishing the local board, the local board ceases to exist and its undertaking, documents, assets and liabilities shall be vested in and assumed by the municipality.
2. This Act comes into force on the day it receives Royal Assent.
3. The short title of this Act is the Affordable Housing Incentives Act, 2001.
Section 111 of the Municipal Act prohibits a municipality from granting any financial assistance to any enterprise. The Bill creates an exception to this rule, enabling municipalities to provide financial assistance to an affordable housing project in the municipality. The Bill allows municipalities to define what types of affordable housing projects will qualify for assistance. A local board can also be established by the municipality to administer a program to provide financial assistance for affordable housing projects.