Item - 2021.IE23.3

The Infrastructure and Environment Committee recommends that:

1. City Council approve changes to the Residential Energy Retrofit Program in accordance with Attachment 1 to the report (June 18, 2021) from the Executive Director, Social Development, Finance and Administration, including the following:

a. add the Taking Action on Tower Renewal Program as a second Multi-Residential Stream of the Residential Energy Retrofit Program and for this new program:

i. increase the initial disbursement to be up to 30 percent of the estimated cost of the work in the Property Owner Agreement and allow for a second disbursement at 50 percent project completion; and

ii. increase the maximum special charge eligibility to be the lesser of 25 percent of the Current Value Assessment of the property or $5 million per multi-residential building; and

b.  introduce changes to the Multi-Residential Stream of the Residential Energy Retrofit Program including the following:

i. increase the cap on the maximum special charge;

ii. allow tax exempt properties to participate; and

iii. enable the cost of work to include reasonable additional administrative expenses incurred by the City of Toronto for exceptional circumstances.   

2. City Council amend the Residential Energy Retrofit Program By-law, By Law 1105-2013, to reflect the recommended changes in Part 1 above.

3. City Council authorize the City Solicitor, in consultation with the City Clerk, to submit a Bill to Council to codify By-law 1105-2013, as amended, as Chapter 669 of the City of Toronto Municipal Code.

4. City Council authorize the Chief Financial Officer and Treasurer to establish program interest rates for the Taking Action on Tower Renewal Program based on the City’s projected indicative cost of borrowing, set on a quarterly basis, for the purposes of recovering the City's cost of borrowing.

5. City Council authorize the extension of the Multi-Residential Streams of the Residential Energy Retrofit Programs including the High-rise Retrofit Improvement Support Program and the new Taking Action on Tower Renewal Program, as recommended to be enhanced in accordance with Part 1 above,  from its current expiration date of December 31, 2021 to December 31, 2026 using existing resources in the Local Improvement Charge Energy Works Reserve Fund and any Local Improvement Charge repayments to support project and programming  needs, including the extension of one temporary project manager, and City Council direct the Executive Director, Social Development, Finance and Administration to report back on key Program outcomes through regular TransformTO reports to City Council.

6. City Council authorize the Executive Director, Social Development, Finance and Administration to negotiate and enter into all necessary partnership and funding agreements with The Atmospheric Fund, Enbridge Gas Distribution, Natural Resources Canada, Canada Mortgage and Housing Corporation, Independent Electricity Systems Operator, Toronto Hydro, and other partners, in forms satisfactory to the City Solicitor, to support implementation of the High-rise Retrofit Improvement Support Program and Taking Action on Tower Renewal Program, as required.

7. City Council authorize the Executive Director, Social Development, Finance and Administration to review and, where necessary, revise the High-rise Retrofit Improvement Support Program and Taking Action on Tower Renewal Program from time to time, solely for the purpose of integrating the City's program with industry best practices and new or existing Federal, Provincial and utility company energy, climate change and poverty reduction programs.

8. City Council authorize the City Solicitor to bring forward the necessary bills to further amend the Program By-law to implement Part 7 above.

The Federation of Canadian Municipalities has approved the City of Toronto, through the Tower Renewal Program, for $11,746,300 in financing and $1,761,900 in grants to deliver retrofits at older apartment towers in Toronto. In adopting the 2021 Capital and Operating Budget (EX21.2) in February 2021, City Council approved receipt of the funds in order to establish a new program, Taking Action on Tower Renewal. This report responds to City Council's direction to report on a model to deliver the program.

The Taking Action on Tower Renewal Program will provide a combination of financing and grants to eligible property owners to complete retrofits increasing energy efficiency and reducing greenhouse gas emissions while maintaining affordability and improving tenant comfort. This program uses the Local Improvement Charge mechanism to advance retrofit actions in Toronto's multi-residential rental housing stock. It will encourage early voluntary action helping buildings to meet energy and emissions reductions targets, and related actions, being recommended in the City's Net Zero Existing Buildings Strategy.

To enable implementation of the model, this report seeks approval to: add Taking Action on Tower Renewal as a second program under the Multi-Residential Stream of the Residential Energy Retrofit Programs, introduce changes to the overall Multi-Residential Stream including the High-rise Retrofit Improvement Support Program, and authorize amendments to the existing Program By-law 1105-2013 in accordance with Attachment 1.

Taking Action on Tower Renewal advances many City priorities including addressing climate change, improving rental housing quality and maintaining the affordable rental housing stock. The Program will be part of the actions that respond to the City's declaration of a climate emergency and TransformTO. Through this Program, the City is directly enabling the long term investment required to maintain this crucial building stock and will help implement key actions in the HousingTO Action Plan 2020-2030 and the Poverty Reduction Strategy.