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Over the last months, we have been exploring a unique City of Toronto pilot project, the Home Energy Loan Program (HELP), which provides low-interest loans to improve the energy efficiency of Toronto's housing stock. In July we introduced the pilot project that facilitates financially flexible home renovations, and in August we spoke to the first homeowner to use the program, taking an inside look at the energy improvements—and cost savings—offered by HELP. Now, UrbanToronto brings you an interview with Marco Iacampo, HELP's Program Manager with the City of Toronto, to take an in-depth look at the financial benefits of the program to homeowners.
Introducing the history of the program, Iacampo explains that the creation of HELP was facilitated by recently updated local improvement charge (LIC) regulations, which allow municipalities to provide energy improvement loans to individual homeowners. "The system originated in California and has gained popularity throughout the United States," Iacampo tells us, highlighting Toronto's program as "among the first of its kind in Canada."
Under the auspices of the program, interested homeowners who contact HELP are "first set up with a certified home energy assessment," Iacampo explains. The assessment, conducted by an independent energy advisor, provides an overview of the home's current energy problems, whether lack of insulation, inefficient heating/cooling, or outdated windows and doors. Following the assessment, a loan of up to 5% of the total property value is available to owners of detached, semi-detached, or row houses.
HELP provides a flexible, low-interest repayment schedule with a variety of fixed rates available (below), accommodating a range of repayment plans and budgeting options. In addition, the loans—which can also be fully paid back at any time, without penalty—are attached to the property, not the owner, meaning that the balance of the loan remains fixed to the property tax bill in the event that ownership changes hands. Combined with the predictable low interest options, this makes HELP financing an exceptionally flexible option for homeowners.
According to the City's research, "many HELP loans can effectively pay for themselves over a 10-year period," Iacampo tells us, highlighting the long-term savings facilitated by the program. This means that substantial monthly energy savings can add up to the net cost of capital investment over a decade, helping homeowners save money—while living in a more environmentally sustainable way—in the long term.
"While many home improvements generally help property value," Iacampo continues, "very few of them also save money in and of themselves, making energy retrofits an especially attractive investment." What's more, with the Province of Ontario currently considering new legislation that would require a property's energy use to be labelled when a home is sold (much like a car's gasoline consumption), energy consumption could soon have a more direct impact on property values across the province, benefiting more efficient homes.
The HELP pilot program is now available city-wide, and has received over 300 homeowners' applications. Scheduled to continue until December of 2016, interested homeowners have just over one year in which to undertake energy retrofits at the lowest possible cost. For homeowners who struggle with high energy bills and find it difficult to finance the necessary repairs and retrofits, HELP provides a low-interest, environmentally sensitive option that creates more livable homes and saves money in the long-term.
More information about the HELP program is available on the City of Toronto website here.
