Multifamily landlords in Toronto could qualify for grants of up to $1.5 million through a newly launched energy retrofit initiative for buildings of 3+ storeys constructed before 1990. The program — dubbed Taking Action on Tower Renewal (TATR) — will offer low-cost financing to be repaid over five to 20 years through a special property-related levy, along with partial loan forgiveness for attaining targets for energy saving and emissions reduction.

“Improving the energy efficiency of the City’s many older apartment buildings will not only improve the lives of tenants, it will also make important contributions to the City’s net zero target,” says Deputy Mayor Jennifer McKelvie. “I encourage eligible property owners across the City to apply and help revitalize their communities.”

To qualify, properties must be located in one of Toronto’s 31 designated neighbourhood improvement areas (NIAs) or house a low-income occupancy, and be free of property tax and utility arrears for at least five years. Available funding will be capped at 25 per cent of a property’s current value assessment or $5 million, whichever is the lower amount. Loans will be tied to the property and become the obligation of the new owners if the building is sold.

Participating owners must begin the undertaking with a recognized credible energy audit and can choose either a Level 1 or 2 target-and-grant option. Level 1 is a commitment for a 15 per cent reduction in energy consumption and greenhouse gas (GHG) emissions to qualify for loan forgiveness equivalent to 15 per cent of project costs. Level 2 is a commitment for a 30 per cent energy-use and emissions reduction, which qualifies for a grant of up to $50,000 to underwrite an energy assessment and technical study and loan forgiveness equivalent to 30 per cent of project costs.

At least one of the following upgrade measures will be mandatory for every TATR project:

• high-efficiency windows;
• roof replacement and associated enhanced insulation;
• insulated over-cladding; or
• heat pumps.

As well, any required associated ventilation improvements must be completed. A range of other building envelope and mechanical upgrades, water efficiency measures, LED lighting/controls and renewable energy systems will also qualify, provided they have been identified in the supporting energy assessment.

The program rules prohibit participating landlords from applying for above guideline rent increases related to the improvements. They must also agree to host information sessions and prepare other communications to keep tenants informed about the project’s progress, and to implement conservation awareness training. Where applicable, they will be expected to offer City of Toronto job training or local skills development programs on jobsites in their buildings.

TATR is funded with a $13.5 million injection from the Federation of Canadian Municipalities’ (FCM) green fund.

“With support from the Green Municipal Fund, municipalities of all sizes are implementing smart sustainable solutions. We deliver results with our federal partners by supporting cities like Toronto in their innovative ways to save energy and energy-related costs and reduce greenhouse gas emissions,” says FCM’s acting president, Scott Pearce.