LIC Financing

Property-assessed financing has the distinct advantage of tying the efficiency investment to the property, mitigating the risk of the homeowner that their payback period is longer than the time they remain (or intend to remain) in the home. Attractive interest rates and borrowing terms can be achieved for homeowners while reducing or eliminating their up-front capital costs. It is proposed that the City would collect LIC payments on behalf of the Entity from homeowners participating in the retrofit program by passing an LIC By-law and entering into an agreement with the Entity. A robust municipal risk assessment was completed through collaboration with the City of Vaughan. A concern regarding mortgage lender consent was raised during the engagements and was considered extensively during the development of the Municipal LIC Risk Assessment. The final rating of this risk was low, given identified mitigation strategies and ongoing monitoring by the Entity.

Conclusions

Based on the analytical findings and stakeholder engagement, the PWT concludes there are reasonable grounds to proceed to implement the CEP recommendation of a Residential Deep Energy Retrofit Program. This conclusion is made with the understanding that the Entity established to administer the program would need to complete a final Business Plan prior to starting implementation. However, without establishing an Entity with a mandate to deliver high volumes of high quality, standardized residential energy efficiency retrofit packages to most Windsor homes, the City’s energy and efficiency goals, as approved in the CEP, are unlikely to be realized.

Recommendations:

The PWT recommends that City Council:

  1. Endorses the Final Report of the Project Working Team: Windsor’s Residential Deep Energy Efficiency Retrofit (R-DEER) Business Case.

  2. Incorporates a Municipal Services Corporation to serve as the Program Administrator with a mandate to develop an R-DEER Business Plan.

  3. Applies for grants including the FCM Community Eco-Efficiency Accelerator program funding to support program set-up and launch, including the development of a final R-DEER Business Plan.

  4. At the appropriate time, enacts an LIC By-law and enters into an agreement with the Municipal Services Corporation, with appropriate terms and conditions, to make optional LIC financing available to homeowners participating in the program.

  5. Encourages the Municipal Services Corporation to consider program accessibility during final program design and the potential to leverage retained earnings over time to address the needs of low-income residents and/or seniors on fixed incomes.