Taking Action on Tower Renewal Program

A property owner can apply to the program and, based on the building eligibility and an energy assessment (energy audit), enter into an agreement with the City to undertake building improvements that enhance resident comfort and reduce emissions. Eligible owners receive either 25 per cent of the Current Value Assessment of the property or $5 million per multi-residential building – whichever is less.

Once the work is completed, the City places a special charge on the property that includes the cost of the improvements, the cost of borrowing and a charge reflecting the administrative costs incurred by the City.

The property owner then pays the special charge on the property tax bill over an agreed term which reflects the useful life of the improvements. Available financing terms range from five to 20 years. Through the Program, the payment obligation attaches to the property, not the owner, and is secured by the City’s priority lien status. If a property changes ownership, the new owner would assume the obligation to the City and continue to make payments until the special charge is fully paid.

After one year, if the building’s improvements to energy efficiency are performing as expected, the owner makes a report to the City and the City will apply the “grant” as loan forgiveness, and shorten the length of time it will take to pay off the debt.

There are many benefits to energy based retrofit work for both building owners and residents including:

• reduced utility usage and bills
• savings on maintenance, replacement or major repair costs
• savings on insurance premiums
• improved indoor air quality and tenant comfort and health
• reduced greenhouse gas emissions

Level 1 Grant Amount

Retrofit project must meet, at minimum, 15 per cent energy and emissions reduction to be eligible to receive a grant against the estimated project costs. The project may qualify for a grant of up to 15 per cent of the total project cost.

Level 2 Grant Amount

Retrofit project must meet a minimum of 30 per cent emissions reduction to be eligible to receive a grant against the estimated project costs, and up to $50,000 in an energy assessment and technical study grant to cover up to 50 per cent of the study cost. The project may then further qualify for a grant of up to 30 per cent of the total project cost.

As part of the TATR program, participating property owners will be supported by program staff to implement resident engagement activities including:

• developing resident engagement information sessions and communication packages prior, during and after the retrofit project is completed
• implementing conservation awareness training for residents through the Tower Renewal Green Champions Program at each building to help tenants save energy, water and lower residential garbage waste
• participating in any workforce development and local training or employment programs developed by the City of Toronto

To be eligible for the TATR Program:

• The property must be a residential rental apartment building built before 1990 with three or more storeys or more located in the City of Toronto.
• The residential rental apartment building must be located in a Neighbourhood Improvement Area (NIA) or in a community where residents live on low-incomes in Toronto.
• All registered owner(s) of a property must consent to participating in the Program.
• Property taxes, utility bills and all other payments obligations to the City for the past five years must be in good standing.

Property owners must also ensure that they comply with obligations to financial institutions or other lenders who have a mortgage interest in the property. This may necessitate obtaining independent legal and financial advice, including any mortgage holder that pays the property tax on an owner’s behalf, with respect to participation in the program. Participating properties must complete and submit the required program application forms and provide an energy assessment (ASHRAE Level 2 or above energy audit) that meets the qualifying criteria.  

Property owners must also enter into a Property Owner Agreement between the property owner(s) and the City of Toronto and repay any funding received under TATR through payment of a special charge added to the Property’s tax roll by the City until and unless they achieve their carbon emissions goal and are granted loan forgiveness.

To participate in the program, measures undertaken must include at least one of:

• high efficiency windows
• roof replacement with enhanced insulation
• insulated overcladding
• heat pumps
• relevant ventilation improvements that must be completed alongside window, roof and overcladding retrofits

Other qualifying improvements include:

• building envelope: window/balcony door replacements, window/door caulking, exterior wall cladding, solar air heating systems, insulated roofing, and more
• mechanical system: boilers, booster pumps, building automation systems, make-up air units, garage exhaust fan & CO controls, heat/energy recovery ventilators, heat pumps, cooling system upgrades, and more
• water fixtures: low flow/ultra-low flow toilets
• renewable energy: solar photovoltaics, geothermal heating and cooling and more
• lighting: LED lighting systems and controls
• any measure that provides energy efficiency or water conservation benefits

All improvements that receive funding through the program must be identified in an Energy Assessment (energy audit) Report that meets the qualifying criteria  .

1. Submit an Expression of Interest Form to find out how much funding you could receive.
2. Complete a Funding Request Form and submit with a copy of an ASHRAE Level 2 or above Energy Assessment (Energy Audit) Report 
3. After your project proposal is reviewed and approved by our Technical Advisory Committee, sign the Property Owner Agreement  and start the building improvement project.

The special charge on the property is calculated as the sum of three parts:

1. Funding Amount (final project cost for energy and water improvements)
2. Cost of Borrowing (the City’s notional cost of borrowing to fund the Program charged through the Program interest rates noted below)
3. Administrative charge (a charge that reflects the City’s cost of administering the Program)
4. The grant will then be applied as loan forgiveness through the property tax repayment system.

The administrative charge for the multi-residential stream of the Program is 0.8 per cent. This charge will be calculated on the final funding amount and billed over the term.

The maximum funding amount for any property cannot exceed 25 per cent of the property’s Current Value Assessment (CVA), up to a maximum of $5 million per building. The CVA for your property can be found on the City of Toronto property tax bill. If your property meets the program eligibility criteria, the City will calculate the maximum allowable funding amount for a five-, 10-, 15- and 20-year term and provide this information to you in a Notice to Proceed letter, after reviewing the Expression of Interest forms.

Program interest rates are annual interest rates and shall remain fixed for the duration of the term. For TATR, terms of five to 20 years are available. Please note that the agreed term for any property will not extend beyond the useful life of the qualifying improvements.

Above Guideline Rent Increase Restriction

Property owners must agree not to apply for any rent increases above the guideline as identified in the Residential Tenancies Act in connection with any of the improvements funded through the Program.

Early Pay-Out

Property owners have an option to make a one-time payment of the full special charge amount to clear an outstanding balance in advance of the completion of the agreed term.

Pre-Authorized Payment Plan

Participating property owners are required to enrol in the City’s payment program whereby property owners authorize automatic withdrawals from a bank account 11 times per calendar year to pay the property tax bill.