As the world grapples with the urgent need to combat climate change, the importance of sustainable housing solutions cannot be overstated. Recognizing this imperative, the Canadian government has introduced the Canada Greener Affordable Housing program. This groundbreaking initiative aims to support affordable housing providers in undertaking deep energy retrofits on existing multi-unit residential buildings. By providing pre-retrofit and retrofit funding, the program paves the way for significant energy consumption reductions and greenhouse gas emissions mitigation.
In this comprehensive guide, we will delve into the intricacies of the Canada Greener Affordable Housing program, focusing on both the pre-retrofit and retrofit funding options, the eligibility criteria, the approval process, and the funding details. Additionally, we will explore how Solar Resource, the leading solar installation company in Canada, can leverage its expertise to drive sustainable retrofits in alignment with this program’s objectives.
Understanding the Canada Greener Affordable Housing Program
The Canada Greener Affordable Housing program stands as a pivotal step towards achieving Canada’s ambitious goal of net-zero emissions by 2050. By prioritizing the enhancement of climate capability and resilience in multi-unit residential buildings, the program offers forgivable loans and low-interest repayable loans to finance building retrofit measures. These measures are specifically designed to meet climate objectives, leading to substantial reductions in energy consumption and greenhouse gas emissions. The program’s focus on deep energy retrofits underscores its commitment to attaining significant energy efficiency gains and sustainability outcomes.
Pre-Retrofit Funding: Setting the Foundation
The Pre-Retrofit Funding component of the Canada Greener Affordable Housing program plays a crucial role in preparing affordable housing providers for deep energy retrofits. This phase provides funding for activities that enable a comprehensive understanding of building energy performance and the identification of required retrofits to achieve deep energy retrofit targets. By conducting energy audits, energy modeling studies, and building condition assessments, housing providers gain invaluable insights into the potential energy efficiency enhancements and associated retrofit costs.
Eligibility Criteria for Pre-Retrofit Funding
To be eligible for Pre-Retrofit Funding, affordable housing providers must have a clear mandate to provide housing for lower-income households or populations in need. The program welcomes applications from various entities, including community housing providers such as non-profit housing organizations, public housing agencies, rental co-operatives, indigenous governments and organizations (including First Nations, Tribal Councils, and Indigenous housing providers), and provincial, territorial, and municipal governments. Private market housing organizations, however, are not eligible for this funding.
The program encompasses a wide range of eligible property types, including mixed-income rental or mix-use with affordable rental housing, community housing, affordable rental housing, Indigenous community housing and cultural spaces, shelters, transitional and supportive housing, and single-room occupancy. It is important to note that the non-residential component of the property should not exceed 30% of the total gross floor space.
Projects must primarily serve residential purposes and include a minimum of five units or beds. The age requirements differ based on the building type: part 9 buildings (e.g., single detached, duplex, and townhouses) must be at least 10 years old, while part 3 buildings (e.g., mid to high-rise, low-rise, and multiplex buildings) must be at least 20 years old.
Approval Process for Pre-Retrofit Funding
The approval process for Pre-Retrofit Funding follows a diligent and efficient approach. Before submitting an application, affordable housing providers must gather the required documentation, which includes professional reports outlining how climate objectives will be achieved and a detailed retrofit scope of work encompassing cost estimates and completion timelines.
To ensure a smooth application process, it is advisable to consult with a CMHC specialist who can guide housing providers in gathering the necessary documentation. The application must include essential forms such as the Retrofit Funding Assessment Calculator, the Integrity Declaration, and the Energy Assessment Attestation. Once the application is complete, it can be submitted through the designated application portal, following confirmation from the CMHC specialist.
CMHC reviews the projects for eligibility, conducting a comprehensive assessment within approximately 60 days after the application window closes. Timely submission of all required documentation is crucial for the application’s processing. In instances of high demand, the program prioritizes funding based on the achievement of environmental outcomes and project readiness, favoring projects that demonstrate the potential to commence construction within six months.
Affordable housing providers whose applications are deemed complete and meet the program’s criteria receive a loan agreement confirming CMHC’s conditional approval of funding. This confirmation typically occurs within 30 days of application submission. Furthermore, advancing conditions within the specified time frame is crucial, as failure to do so may result in application cancellation or modifications to CMHC’s funding commitment.
Funding Details for Pre-Retrofit Funding
The Canada Greener Affordable Housing program allocates up to $19.5 million for Pre-Retrofit Funding through a callout application-based process. CMHC funds 100% of eligible retrofit costs, with a maximum limit of $130,000 per project.
The funding is disbursed over three years, starting from the 2023-24 fiscal year. This generous provision alleviates a significant financial burden for affordable housing providers, allowing them to focus on achieving their sustainability goals and supporting the transition to greener, more energy-efficient buildings.
Retrofit Funding: Energizing Sustainable Transformation
The Retrofit Funding component of the Canada Greener Affordable Housing program represents a vital phase in the journey towards sustainable transformation. It provides financial support for the implementation of deep energy retrofits, enabling affordable housing providers to realize substantial energy consumption reductions and greenhouse gas emissions mitigation.
Eligibility Criteria for Retrofit Funding
To qualify for Retrofit Funding, affordable housing providers must meet specific eligibility criteria. As with Pre-Retrofit Funding, the program requires providers to have an affordable housing purpose and a proven mandate to provide housing to lower-income households or populations in need. The eligibility extends to community housing providers, indigenous governments and organizations, and provincial, territorial, and municipal governments. Private market housing organizations are not eligible for Retrofit Funding either.
The program encompasses a range of eligible housing types, including mixed-income rental or mix-use with affordable rental housing, community housing, affordable rental housing, Indigenous community housing and cultural spaces, shelters, transitional and supportive housing, and single-room occupancy. It is essential to ensure that projects primarily serve residential purposes and include a minimum of five units or beds.
Approval Process for Retrofit Funding
The approval process for Retrofit Funding follows a similar trajectory to that of Pre-Retrofit Funding. Affordable housing providers must gather the necessary documentation, which includes professional reports detailing the retrofit plans, cost estimates, and completion timelines. Consulting with a CMHC specialist is crucial for a smooth application process.
The completed application, including the required forms such as the Retrofit Funding Assessment Calculator, the Integrity Declaration, and the Energy Assessment Attestation, should be submitted through the designated application portal following confirmation from the CMHC specialist. CMHC reviews the projects for eligibility and performs a comprehensive financial analysis within approximately 60 days after the application window closes. Timely submission of all required documentation is imperative for a swift evaluation process.
Projects demonstrating the potential for timely commencement of construction within six months are given preference in cases of high demand.
Funding Details for Retrofit Funding
The Canada Greener Affordable Housing program allocates up to $1.1 billion in forgivable and low-interest repayable loans for Retrofit Funding. CMHC funds 100% of eligible retrofit costs, up to $170,000 per unit when combining both repayable and forgivable loans. The forgivable loans are calculated based on the lesser of $85,000 per unit or 80% of eligible retrofit costs.
A little different from Pre-Retrofit Funding, the funding is disbursed over four years, beginning in the 2023-24 fiscal year. Repayable loans are offered at low-interest rates and can be amortized up to the remaining economic life of the building, with a maximum of 40 years. The interest rate is locked in at the first advance for a 10-year term. After the completion of energy retrofits, the payments transition from interest-only to include both principal and interest for the remainder of the loan term..
Leveraging Solar Resource’s Expertise for Sustainable Retrofits
As a leading solar installation company in Canada, Solar Resource is well-positioned to play a crucial role in driving sustainable retrofits aligned with the Canada Greener Affordable Housing program. With its expertise in renewable energy solutions, Solar Resource can assist affordable housing providers in integrating advanced solar technologies into their retrofit projects. By harnessing solar energy, affordable housing buildings can further enhance their energy efficiency, reduce dependence on traditional energy sources, and contribute to a greener future.
Solar Resource’s comprehensive range of services includes solar panel installation at low costs, energy storage solutions, and system monitoring to maximize energy generation, and optimize performance. By collaborating with Solar Resource, affordable housing providers can capitalize on renewable energy solutions that align with the objectives of the Canada Greener Affordable Housing program, further advancing their sustainability efforts.
An Opportunity
The Canada Greener Affordable Housing program offers a transformative opportunity for affordable housing providers to embark on deep energy retrofits, significantly reducing energy consumption and greenhouse gas emissions. The Pre-Retrofit Funding component sets the foundation for success by enabling thorough energy audits, modeling studies, and building condition assessments. The Retrofit Funding phase empowers affordable housing providers to implement comprehensive retrofit measures, driving sustainable transformation in existing multi-unit residential buildings.
With its forgivable and low-interest repayable loans, the program provides the necessary financial support to make these retrofits economically viable. By leveraging Solar Resource’s expertise in solar installations and community projects, affordable housing providers can further enhance the sustainability of their retrofits and contribute to a greener future.
The Canada Greener Affordable Housing program stands as a testament to Canada’s commitment to combating climate change and building a sustainable future. By embracing the program’s offerings, affordable housing providers can create healthier, more energy-efficient homes for communities while making substantial strides in environmental stewardship. Together, we can empower the transformation of affordable housing into beacons of sustainability, setting a path for a greener and brighter future for all.