Better Homes Hamilton Program

BHH is a local improvement charge financing program meant to help homeowners pay for energy-efficiency retrofits to reduce greenhouse gas emissions and live more comfortably.

During the pilot phase of the BHH program 50 homeowners who participate in the pilot program will qualify for up to $20,000 loans at special 0% interest rate. The BHH program provides an optional 30% of the total loan to help pre-pay contractors. The loan is attached to the property and not the homeowner and is paid back through the property tax bill over a period of 10 to 15 years.

Program Financing

• Loan Amount: Maximum loan of $20,000 per applicant
• Interest Rate: 0% introductory rate
• Repayment Term: 10 or 15 year repayment term
• Stackable with existing government and utility incentive programs, including income-qualifying incentive programs

The loan is placed on the property as a special charge and then collected the same way property taxes are collected. This allows individuals or families to qualify that may not be able to qualify for traditional financing through other financial institutions. This also means that the loan is attached to the property and not the homeowners. If you sell your house before the loan is paid off, the new owners will be responsible for paying off the balance of the loan since the upgrade benefits remain with the home.

The BHH Program includes access to a Program Coach to provide guidance to applicants throughout the BHH process. The Program Coach can also provide information on:

• the potential benefits of the various eligible retrofits;
• determining the loan repayment term; and
• existing grants, rebates and incentives.

BHH applicants are solely responsible for the retrofit choices made, and the City does not take any responsibility for the advice provided to the applicant or any work potentially recommended by the BHH Program Coach.

To speak with the BHH Program Coach, send an email to [email protected] or call 905-546-2424 ext. 3916.

If a homeowner has one or more outstanding mortgage(s) associated with the property, the homeowner must inform the mortgage lender(s) of its intention to participate in the BHH Program using the City's prescribed letter template form. This template will be provided by the BHH Program Coach to all successful applicants during the approval process.

The BHH Program does not require applicants to submit a home energy assessment. However, as the BHH program is “stackable,” participants are strongly encouraged to do so. If you choose to have a home energy assessment, visit Canada.ca -Find service organizations for existing homes to find an energy advisor registered with Natural Resources Canada.

The City of Hamilton will provide a BHH loan to successful applicants for eligible measures covered by the BHH Program that have been:

• Recommended or identified through the energy pre-assessment completed by a Registered Energy Advisor, if one was completed;
• Verified by the City; and
• Installed by contractors hired by the homeowner after verification and approval from the City.

The City will not procure contractors to perform home improvements in connection with this program, nor provide participants with a list of pre-approved contractors. The homeowner will use the funds disbursed by the City to pay contractors directly and, if required, may receive up to 30% of the total loan to pay contractors a deposit prior to the contractor starting the work only after the proposed retrofit and renovation quotes have been approved by the City and after a Property Owner Agreement has been signed by both parties and certified.

The City is not responsible for the work quality of any contractors hired in connection with the BHH Program and assumes no liability for the works undertaken. All retrofit improvements and renovations must adhere to all applicable permitting requirements, codes, laws and by-laws.

The homeowner is responsible for ensuring that hired contractors are licensed, bonded and insured for the applicable work they will be undertaking. To assist you in finding licensed contractors, you can check the Licensed Trade Contractors & Masters | Licensed Trade Contractors & Masters website. Any issues that may arise relating to the quality of workmanship or post-installation performance of retrofit measures must be dealt with between the homeowner and the contractor.

Guiding Principles

• Support the greatest number of homeowners to substantially reduce GHG emissions ​from their homes.
• Reduce barriers to program entry through competitive and transparent financing and additional support services and guidance, and​
• Create fair selection criteria to determine the 50 successful applications that represent a diverse mix of buildings and socio-demographic status, with extra marketing focus on neighbourhoods that were identified as having high rates of energy poverty through the Canadian Urban Sustainability Practitioners (CUSP) Energy Poverty Mapping Tool.

Eligible Building Envelope Retrofits:

• Air Sealing and Draft Proofing
• Insulation
  • Attic
  • Basement
  • Wall

Renovations and retrofits that improve the performance of the building envelope are extremely important for energy efficiency. Insulation for walls, attic and basement will be eligible, as are any air-sealing and/or draft proofing expenses that reduce leaks from the house. Building envelope retrofits should be implemented before installing any ASHP to ensure most efficient and cost- effective sizing.

IMPORTANT: Although it is not an eligible retrofit within the BHH Program, it is strongly recommended all homeowners who are improving their insulation and air sealing, have a professional determine whether a Heating Recovery Ventilation (HRV) system or equivalent is required. This will help prevent any unintended consequences like moisture and condensation within the building.

Eligible Mechanical Systems for Heating and Cooling Retrofits:

• Air Source Heat Pumps (ASHP)
  • Cold-climate ASHP;
  • High efficiency gas furnaces as a part of hybrid ASHP systems; and,
  • Ductless mini-splits.
• Smart Thermostat/Smart Controller

It is expected the majority of the $20,000 will be used to cover the expenses related to upgrading old furnaces to high-efficiency Air Source Heat Pumps (ASHP), which can significantly reduce GHG emissions. In combination with insulation and air sealing work, they may also reduce total energy costs.

For more information on ASHPs & list of eligible brands in Canada, visit Natural Resources Canada Air-Source Heat Pump.

These are eligible building types:

•   Detached houses; ​
•   Semi-detached houses​; and
•   Townhomes (including both row and stacked).

These are eligible retrofits:

• Building Envelope: air-sealing/draft proofing, insulation (attic, basement, and walls).
• Mechanical Systems: Air Source Heat Pumps (ASHP), including cold-climate air sources heat pumps (ccASHP), ductless mini-splits, and high efficiency gas furnaces as a part of hybrid ASHP systems, and supporting smart thermostat/controller.
• Supporting Infrastructure: Breaker panel upgrades and ductwork only when required to support installation of ASHP.
• Optional Home Energy Assessments and post-retrofit energy assessments and applicable building permits.

Retrofits must not have already been completed to be eligible. All paperwork including but not limited to Property Owner Agreements and the formal Notice to Proceed under the Better Homes Hamilton Pilot Program must be completed first.

Yes, you can participate under these conditions:

• Through signing the Property Owner agreement, you agree to:
  •  Abide by and comply with all laws and regulations relating to tenants’ rights during a renovation.
  • Complete work in a timely manner with limited disruption to tenants.
  • Not displace your tenant(s) unless you are able to provide and pay for equal or better accommodations for your tenant(s) during the work;
  • Not renovict your tenants either before, during, or after renovations; and,
  • Not download the cost of loan repayments onto your tenants.
• Your tenants will also receive a physical mailer with this information:
  • A program overview explaining how the Better Homes Hamilton program works;
  • The contact information of the Better Homes Hamilton Program Coach;
  • Information about what a Local Improvement Charge (LIC) program is, and how it is the responsibility of the landlord to repay this loan via property tax bills; and,
  • Information about the scope of work and their rights as tenants.

No, you cannot participate in the Better Homes Hamilton program if you have already purchased or installed any of the measures for which you are seeking a Better Homes Hamilton loan.

No, the Better Homes Hamilton program is only eligible for renovations whereby quotes and work are completed by licensed professionals for that particular work.

No, the Better Homes Hamilton program does not cover windows and doors. The only measures eligible are:

• Building Envelope: air-sealing/draft proofing, insulation (attic, basement, and walls).
• Mechanical Systems: Air Source Heat Pumps (ASHP), including cold-climate air sources heat pumps (ccASHP), ductless mini-splits, and high efficiency gas furnaces for hybrid ASHP systems, and supporting smart thermostat/controller.
• Supporting Infrastructure: Breaker panel upgrades and ductwork only when required to support installation of ASHP.
• Optional Home Energy Assessments and post-retrofit energy assessments and applicable building permits.

Incentive and Loan Programs for windows and doors:

• Canada Greener Homes Initiative | Government of Canada

No, this program is only a loan program. If the Better Homes Hamilton Program is not a good fit for you, the Better Homes Hamilton Program Coach can point you to rebates and incentive programs like Enbridge’s income tested winter weatherization program, etc.

The Better Homes Hamilton program participant/homeowner is solely responsible for obtaining contractor quotes. The Better Homes Hamilton Program Coach will provide you with a contractor quote template that you must use to obtain quotes from contractors.

No, City staff will review your “Funding Request Package” and determine:

• Which proposed retrofit measures are eligible;
• If the submitted contractor quotes are reasonable;
• What the total cost of the retrofits would be; and
• Together with you what your repayment terms would be so that you can make a final decision on the loan amount.

If required by contractors in their quotes, you may be eligible to receive up to 30% of the loan in an initial disbursement to pay contractor deposits. That check could take up to six weeks to be processed from the time of signing and certification of the “Property Owner Agreement.”

The City will provide the final disbursement after:

• The homeowner has provided the City with (access to) utility usage and bills or other applicable fuel receipts for the time period commencing two calendar years prior to the date of signing of the Property Owner Agreement.
• If applicable, the homeowner has provided the City with the post-retrofit home energy assessment documentation from the Registered Energy Advisor (REA); and,
• The homeowner has submitted the Project Completion Package to the City's satisfaction following completion of the work, for determination by the City, in accordance with the Property Owner Agreement, of any final disbursement for which the property qualifies.

If required by contractors in their quotes, you may be eligible to receive up to 30% of the loan in an initial disbursement to pay contractor deposits. That cheque could take up to six weeks to be processed from the time of signing and certification of the Property Owner Agreement.

You can only get the loan after you have already paid all the contractor invoices and submitted paid invoices and receipts to the City in your Project Completion Package. This means you will have to pay the contractors upfront with your own money (either through savings, lines of credit, or through contractor financing terms etc.) before you receive the loan. It could take up to 10-12 weeks for you to receive your final disbursement. Most participants will likely use a personal line of credit to pay contractors before the loan comes in or set up a financing arrangement with the contractor.

The City requires verification that the loan is being used for the sole purpose of the energy-efficiency building retrofits. Final paid invoices and receipts are required, as part of the Project Completion Package, and must be submitted to the Program Coach before receiving the final disbursement of your loan.

Most participants will likely use a personal line of credit to pay contractors before the loan comes in or set up a financing arrangement with the contractor.

No, there is a limit of one loan per property owner(s). Property owners cannot have a loan or loans for retrofits on multiple properties.

No, the City does not have a list of pre-qualified list of contractors. All participants must find and hire their own contractor. Furthermore, the City is not responsible for the quality of workmanship of the contractors participants hire.