We offer green construction loans to developers who want build energy-efficient projects without negatively affecting the market price.
TAF’s loan finances the incremental cost (up to $2,000,000) of making a building at least 25 per cent more energy efficient than the Ontario Building Code requires. The loan is provided to the developer and re-paid by the building owner as they benefit from the reduced utility costs. Eligible projects include condo developments, rental housing, institutional buildings, and commercial construction.
Are you a developer interested in a Green Construction Loan? Here’s the path in a snapshot:
- Review TAF’s eligibility and evaluation criteria and submit an application.
- TAF’s expert staff reviews your application and performs due diligence. We provide applicants with feedback on whether or not their project will proceed for further evaluation.
- Our Investment Committee and Board of Directors approve the application.
- A legal agreement is drafted and signed.
- You receive TAF financing for your development (usually at the end of construction).
How much time should you budget? Application process times vary. However, it generally takes around six months from the initial application submission to funding being received.
- The developer must not charge a purchasing price premium for energy efficiency (i.e. no double-dipping). The existence of the Green Construction Loan must be spelled out in the declarations.
- For residential development: 80 per cent of condo or unit sales closed to arm’s length purchasers
- Sign-off of the energy efficiency measures to be installed by a certified LEED (or other) independent specialist
Yes, TAF can provide Green Construction loans across Ontario.
TAF offers financing in the range of $50,000 to $2,000,000.
The investment horizon for Green Condo Loans is typically in the range of 8-10 years.
We do not provide loans for condos where the developer has marketed the condo as “Green” and is charging a premium.
The condo will be subject to regular financial reporting, including annual financial statements, as well as energy performance reporting (gas, water, electricity usage).