Canada Greener Affordable Housing Program (CGAH)

The Canada Greener Affordable Housing Program (CGAH) is part of Canada’s comprehensive strategy to enhance the sustainability and affordability of housing. Administered by the Canadian Mortgage and Housing Corporation (CMHC), this program provides financial support to affordable housing providers to undertake deep energy retrofits. The program aims to significantly improve the energy performance of existing affordable housing units, thereby reducing operating costs and greenhouse gas emissions.

How Does it Work?

The CGAH works through a structured financial support system that includes both low-interest and forgivable loans. Here are the key components:

• Planning and Assessment: The program provides funding for initial energy assessments and planning activities. This includes conducting energy audits to identify areas for improvement and developing detailed retrofit plans.
• Capital Costs: Loans are available for the capital costs of implementing energy-efficient upgrades. This can include upgrading insulation, installing high-efficiency heating and cooling systems, replacing windows and doors, and integrating renewable energy sources.
• Loan Terms: The loans are offered at low interest rates, with the possibility of loan forgiveness based on the performance and outcomes of the retrofit projects. This makes it financially viable for affordable housing providers to invest in significant energy upgrades.
• Implementation Support: CMHC provides technical support and guidance throughout the retrofit process to ensure projects are completed effectively and efficiently.

How Can People Access the Program?

Accessing the CGAH involves several steps for affordable housing providers:

1. Application Submission: Providers submit detailed project proposals to CMHC. The application process typically involves a two-stage approach, an initial expression of interest (EOI) followed by a full application. The EOI stage allows providers to submit a brief overview of their project, and if selected, they are invited to submit a full application. The proposals should include information on the current energy performance of the housing units, planned upgrades, expected outcomes, and budget estimates.
2. Evaluation and Approval: CMHC reviews the applications based on criteria such as the potential for energy savings, reduction in greenhouse gas emissions, and improvements in affordability and living conditions. Successful proposals are approved for funding.
3. Funding Disbursement: Approved projects receive low-interest or forgivable loans to cover the costs of energy assessments, planning, and capital improvements.This may be conditional upon the provider meeting specific requirements, such as completing energy audits or developing detailed retrofit plans.
4. Implementation: Providers proceed with the retrofits, utilizing the funds and technical support provided by CMHC. Ongoing monitoring ensures that the projects meet the expected standards and deliver the anticipated benefits.

What is the Government Aiming to Achieve?

The primary objectives of the CGAH are:

• Improve Energy Efficiency: Enhance the energy performance of affordable housing units to reduce energy consumption and operating costs.
• Reduce Greenhouse Gas Emissions: Lower the carbon footprint of the housing sector by promoting the adoption of energy-efficient technologies and practices.
• Increase Housing Affordability: Make affordable housing more cost-effective to operate, ensuring that savings are passed on to residents.
• Enhance Living Conditions: Improve the overall quality and comfort of affordable housing, contributing to better health and well-being for residents.

How is Success Measured?

The success of the CGAH is measured through several key indicators:

• Retrofit Completions: The number of affordable housing units that undergo deep energy retrofits as part of the program.
• Energy Savings: The overall reduction in energy consumption achieved by the retrofitted housing units.
• Greenhouse Gas Emissions: The decrease in greenhouse gas emissions resulting from improved energy efficiency.
• Affordability Improvements: The reduction in operating costs for affordable housing providers and the subsequent impact on housing affordability for residents.
• Resident Satisfaction: The level of improvement in the living conditions and satisfaction of residents in the retrofitted housing units.

By focusing on these metrics, the CGAH aims to deliver substantial benefits to both affordable housing providers and residents, contributing to Canada’s broader environmental and social objectives.

On July 16, 2024, the Honourable Jonathan Wilkinson, Minister of Energy and Natural Resources, unveiled Canada’s first Green Buildings Strategy.

Original Source