Toronto has two LIC programs, Home Energy Loan Program (HELP) for single family residential, and Hi-rise Retrofit Improvement Support Program (Hi-RIS) for mult-iunit residential buildings.
HELP
HELP is the pilot LIC program for single family residential buildings.
- started in July 2013
- Funds primarily energy saving retrofits such as insulation and high efficiency HVAC
- some water saving projects
- does not fund renewable energy projects
- capacity to include innovative energy technology in the future
Eligible projects:
o High efficiency furnace/boiler
o High efficiency central air conditioner
o High efficiency water heater
o Drain water heat recovery system
o Window or door replacement
o Air sealing (i.e. weather stripping, caulking)
o Attic insulation
o Exterior wall insulation
o Basement insulation
o Toilet replacement
o Heat recovery/energy recovery
o ventilator
Only improvements recommended by the Certified Energy Auditor (CEA) can be funded.
*can consult with CEA about eligibility of projects not listed above
Applicant eligibility requirements:
o property tax & utility payments in good standing
o written consent from mortgage lender if applicable
o all property owners consent
- Property owners hire their own auditors and contractors
- City does not provide list of approved contractors and is not responsible for quality of retrofits
- loan period 5- 15 years
- rates 2.5% – 4.25%
Program is funded by:
o OPA
o Toronto Atmospheric Fund
o NRCan
o Enbridge Gas
o Toronto Hydro
o Borrowed from the City’s Working Capital Reserve Fund
(10 000 000 allotted for HELP)
- Implemented in few neighbourhoods as part of pilot program
o Black Creek, lowest Toronto Equity Score, a “Neighbourhood Improvement Area”
o Riverdale, many houses built in the 1880s to 1930
o Junction/High Park; South Scarborough, Toronto Centre/Beaches
- Grants available from gas and electric utilities for participants to help cover costs
- Lump sum payment not acceptable unless paid in full
- Admin fee to the City: 2% of total requested funding amount
o Interest is not compounded on this charge; payment spread out over the term
- Max funding: requested funding + interest + admin fee to not exceed 5% of CVA (current value assessment)
Hi-RIS
- 3 year pilot program; no location limits
- Loan period up to 20 years
- Useful life of improvements must be min 5 years
- terms: 5- 20 years in increments of 5 years, 2.5 – 4.5%
- Term cannot exceed useful life of proposed improvement
- Max financing 5% of CVA
- Admin charge 0.8%
- Eligibility:
o All criteria under HELP met
o Property must comply with the program’s energy assessment criteria
- Funds improvements in:
o Building envelope (insulation, air sealing, etc.)
o Mechanical equipment upgrades
o Water fixtures
- Property owners hire their own auditors and contractors
- Owners cannot raise rent above limit in Residential Tenancies Act
- Complete lump sum allowed
- Must enroll in Pre-Authorized Payment Plan
- If in a residential building with multiple owners, all owners must agree with improvements
Application process:
- Funding disbursements happen at Stages 3 and 4
- Stage 3 optional 10% disbursement for materials and securing a contractor
- Stage 4 all funding disbursed after post-retrofit assessment and completion of Project Completion Report
- Post-retrofit assessment paid by owner–not covered under program
- rebates available from Enbridge
- Turn-around time 5-7 days for pre-qualification processing
In case of default (from CHEERIO program design report):
- property lien placed on property
- seize and liquidate through tax sale the defaulted property
- mortgage loan insurance protects lenders
- mortgage lenders: only delinquent amount on assessment is due
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