A property owner can apply to the Program and, based on the building eligibility and an energy assessment (ASHRAE Level 2 or above), enter into an agreement with the City to undertake building improvements that reduce energy and water consumption. Once the work is completed, the City places a special charge on the property equal to the cost of the improvements, plus 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.
Through the Hi-RIS Program, building owners can:
To be eligible for the Hi-RIS Program:
Qualifying improvements include:
All improvements that receive funding through the Program must be identified in an energy assessment report (ASHRAE Level 2 or above) that meets the qualifying criteria.
The Special Charge on the property is the total of the following three costs:
|Funding Amount||Final project cost for energy and water improvements|
|Cost of Borrowing||The City’s notional cost of borrowing to fund the Program charged through the Program interest rates noted below|
|Administrative Charge||Covers the City’s cost of administering the Program. 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 10 per cent of the property’s Current Value Assessment (CVA), up to a maximum of $2.5 million per building. The CVA for a property can be found on the City of Toronto property tax bill. If a 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 in a Notice to Proceed letter, after reviewing the Expression of Interest forms.
Hi-RIS provides financing with up to 20-year terms at the competitive fixed rates. Please contact Tower Renewal staff for current interest rates.
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 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 enroll 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.