Like I said, it's the wording in the AZA's paper that confuses me, and I can't get an official response from anyone. As for why the zoo doesn't have AZA status now, they actually DID reapply. The reason that they don't already have it, from what I recall from talking to keepers, and from behind the scenes tours through my university, etc, is because since they lost it, they now had to meet extra criteria before they could be recertified. From what I recall, the reason was that their veterinary facilities needed to be upgraded before they were "to code" with AZA (this came up when they were talking about the new facility that they were building).
This indicates that more than just the fact that the city was able to determine the fate of zoo animals has been keeping the zoo from obtaining their certification again. This also makes me wonder if while breeding of white lions may not be something to deny membership for zoos that were already members and participating in this practice before 2011 (when AZA published their paper where they state that the breeding of such animals was "not in adherence" to their policies. That phrasing seems more concrete than if they had said "is not recommended". "Not in adherence" to me, states that it is a more concrete policy. But again, I'm not sure. Where I work, they are just CAZA certified, so I don't know much about AZA. Which is why I'm here, to see if anyone knows anything more concrete.
Note, I'm not worried about the zoo HOUSING white lions. I'm worried about them intentionally BREEDING them. Which they have done, and which is what the AZA seems to have more issue with. Here's a link about the white lion cubs, proving the breeding, if anyone had any doubts :
Toronto Zoo's white lion cubs growing up fast - Toronto - CBC News