Letter to the Editor - Toronto Star

Letter to the Editor - Toronto Star

January 17, 2012

RE: Letter from former mayors David Crombie, Art Eggleton and John Sewell about the sale of
scattered housing units (January 14, 2012)

Dear Editor:

Toronto Community Housing�s portfolio of stand-alone units does not produce �net revenue� as the former
mayors contend. Although we collect $1.5 million more in rent and subsidies than we pay in utilities and
maintenance, when all overhead costs plus annual capital repair needs are factored in, the result is a
negative cash flow of more than $6.5 million per year.

Continuing to defer capital repair costs year over year will only worsen conditions in our aging housing
stock. Without new funding, the average state of repair of our buildings, currently at Good-to-Fair as
defined by industry standards, will move to Poor in 2014 and reach Critical in 2020. Within five years, 52
per cent of our buildings will have a rating of Poor or Critical, and this figure will reach 95 per cent by
2022.

Our plan to sell stand-alone properties to pay for capital repairs is the best option we have for preventing
more of our housing from becoming unfit to live in. We will support and work with tenants affected by the
sale of stand-alone units to find solutions that meet their specific needs. Our plan maintains existing
levels of rent-geared-to-income units for low-income tenants by converting market rent units to rentgeared-
to-income. And we remain committed to mixed communities where they make financial sense:
revitalization projects in Regent Park, Lawrence Heights and Alexandra Park are good examples of how
we are creating healthy, integrated communities.

While a sustainable solution must involve the federal and provincial governments, neither Queen�s Park
nor Ottawa have indicated that they will provide this funding. Faced with tackling this problem ourselves,
we propose to do so in a way that does the greatest good for the greatest number of people, while
accommodating the needs of tenants who are directly affected.

Len Koroneos
Chief Executive Officer (interim)
Toronto Community Housing