The new Taking Action on Tower Renewal Program (TATR) provides a combination of grants and financing to eligible property owners to complete retrofits that increase energy efficiency and reduce greenhouse gas emissions while improving tenant comfort.
This program provides grants and financing with up to 20-year repayment terms at competitive fixed rates.
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:
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.
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:
To be eligible for the TATR Program:
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:
Other qualifying improvements include:
All improvements that receive funding through the program must be identified in an Energy Assessment (energy audit) Report that meets the qualifying criteria .
The special charge on the property is calculated as the sum of three parts:
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.
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.
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.
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.
The Taking Action on Tower Renewal Program (TATR) is available with the assistance of the Federation of Canadian Municipalities.