Taking Action on Tower Renewal Program

Available Grants

Retrofit projects must demonstrate the potential to reduce energy consumption by at least 10 per cent compared to current performance. Approved projects will qualify for a grant of 10 per cent of the total project cost.

Benefits of Participating in TATR 

Benefits to energy-based retrofit work for building owners and residents include: 

• Reduced utility usage and bills.
• Savings on maintenance, replacement or major repair costs.
• Zero percent interest during construction.
• Savings on insurance premiums.
• Improved indoor air quality and tenant comfort and health.
• Reduced greenhouse gas emissions.
• Access lower interest rates and choose a fixed repayment term of five-, 10-, 15- or 20-years.
• Hire your preferred energy auditors and contractors.

Eligibility Criteria

To be eligible for the TATR Program: 

• The property must be an older multi-unit rental building located in the City of Toronto.
• The building must be at least 20 years old.
• The building must contain at minimum seven (7) units with a height of three storeys.
• The residential rental apartment building must be in a Neighbourhood Improvement Area (NIA), Emerging Neighbourhood, low income census tract or be providing tenants with rents at or below average market rent.
• Private rental apartment buildings, social housing and housing co-operatives ( including non-profit co-ops and equity co-ops) may qualify for the program.
• 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 should 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) that meets the qualifying criteria.
• Improvements must be permanently affixed to the building and have a lifetime useful life of more than five years.

Property owners must also enter into a Tower Renewal 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.

How TATR Works

A property owner can apply to the Program with an energy assessment (ASHRAE Level 2 or above) and enter into an agreement with the City to undertake building improvements that enhance resident comfort and reduce greenhouse-gas emissions. Eligible owners can receive up to 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 loan charge on the property tax roll equal to the cost of the improvements, plus the cost of borrowing. The property owner then pays the special charge on the property tax bill over an agreed term of between five and twenty years. Through the Program, the loan repayment obligation is attached to the property, not the owner. If a property changes ownership, the new owner would assume the obligation to the City and continue to make payments until the loan is fully repaid.

Application and Disbursement Process

Application and Approvals Process

Step 1: Submit an Expression of Interest Form to find out how much funding you could receive.  

Step 2: Complete a Funding Request Form and submit with a copy of an energy assessment report (ASHRAE Level 2 or above). 

Step 3: Sign a Property Owner Agreement with the City.

Funding Disbursement Process

1. Upon signing a Tower Renewal Property Owner Agreement, recipients will be advanced 30% of the approved funding.
2. Halfway through the project, submit an Interim Project Report including detailed invoices of work paid for. Upon receiving the Interim Project Report and confirming progress, an additional 30% of funds will be issued.
3. Once the retrofit work is complete, the property owner(s) submit a Project Completion Form with detailed invoices and proof that the work has been completed. The remaining funds will then be issued once the City has verified that the retrofit project has been completed.

Qualifying Building Improvements

To qualify for funding, building improvements must be able to demonstrate an ability to achieve at least 10% energy and greenhouse gas emissions savings. These improvements must include one of the following four elements of a deep retrofit:

• High efficiency windows
• Roof replacement with enhanced insulation
• Insulated overcladding
• Electric heat pumps
• All improvements that receive funding through the program must be identified in an energy assessment report (ASHRAE Level 2 or above).

Additional Program Terms & Conditions

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. Building owners must distribute a notice to all tenants of this restriction, and post it near the building entrance for one year after the project is complete.

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 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.

Temporary Housing

Property owners must cover the cost of temporary housing for any tenant who needs to move out for a period of time due to work being done, and efforts should be made to house the tenant within the building during this time.  

Signage

Building which receive TATR financing will be required to post signage acknowledging the Green Municipal Fund and Tower Renewal as funders.

Resident Engagement

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