“In Ottawa we have government programs to fund new affordable housing developments, but none that cater to the acquisition of existing housing,” explains Mike Bulthuis, executive director of Ottawa Community Land Trust (OCLT).

“Our aim is to preserve affordability by acquiring at-risk rental homes and placing them under community ownership. But acquisitions take a blending of capital, so the challenge is gathering the financing fast enough to secure the properties.”

Unlike private developers who can easily compete in a hot real estate market, land trusts and non-profits usually need to secure government funding, raise money from investors, and put all the pieces in place before they’re able to place an offer.

Earlier this year, OCLT made its first attempt to purchase a property. With support from the City of Ottawa, community residents, and Vancity Community Investment Bank (VCIB)’s Preserve and Protect Guarantee Program, OCLT announced the success of its acquisition – a six-unit rental property on Kirkwood Avenue in Carlington (pictured above).

Addressing the gap in affordable housing funding

Back in 2020, VCIB launched the Preserve and Protect Guarantee Program in partnership with Parkdale Neighbourhood Land Trust – a first-of-its-kind impact investment program that would help the land trust access necessary funds to acquire at-risk affordable rental buildings.

“Supporting the land trust movement is key to protect housing affordability,” said Eric Visser, VCIB’s Director of Commercial Real Estate.

“Our aim with this program was to leverage VCIB’s capabilities as a financial institution to reduce costs, timelines and other barriers for land trusts to access capital – including the amount that would typically be required as equity to secure bank financing.”

For OCLT’s first purchase, Mike was glad to have found a values-aligned banking partner;
“We were very grateful for VCIB’s willingness to work with us when things were new and when hiccups came up. The impression that I had of VCIB coming into this was that it’s a very values-driven financial institution, that comes through in their work.”

Now that their first property has been secured, OCLT is working on its next big step: growing an acquisitions fund through a community bond campaign.

Through the land trust’s Housing Forever Bonds, managed by Tapestry Community Capital, OCLT will leverage its community of supporters to continue to purchase and preserve affordable rental housing in Ottawa.

“These are not donations, these are loans that will be paid back offering a financial return accompanied by social impact. So we see our community bonds as a really important strategy grounded in community engagement,” said Mike.

“But we’re also trying to build a community movement. If each of us are working alone it’s really hard to make a dent in the housing crisis, but if each of us brings something – even a small amount – we can actually raise quite a bit and use that to make acquisitions.”

Over time, OCLT’s portfolio will facilitate the leverage needed for the land trust to grow and collectively expand Ottawa’s affordable housing supply.

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Learn more about VCIB’s social purpose real estate financing in our website. If interested in chatting with VCIB about your financing needs, get in touch.

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St. Jude Community Homes provides permanent, safe, affordable housing for people living with mental illness. A non-profit mental health agency, St. Jude Community Homes operates four residential sites with self-contained and affordable rental units in various Toronto neighbourhoods. By creating a sense of community and offering support when needed, they have created a space where residents not only build their independence but thrive.

The St. Jude Community Homes Gerrard Street site in Toronto’s east end opened in 2007. After many years of successful operation, in 2020 the landlord indicated that they were looking to sell the building. A deep feeling of uncertainty took root as their lease was coming due, and the organization was not in a financial position to make an offer. That was set to change though, thanks to ingenuity, hard work and the right partnerships.

With the support of their board, staff and residents, plus the guidance of a development consultant, St. Jude Community Homes successfully applied to the City of Toronto’s Multi-Unit Residential Acquisition (MURA) program. They are a perfect fit for MURA, which is intended to help not-for-profit housing providers buy their at-risk buildings and preserve existing affordable rental housing in the city. In addition to MURA funding, the city also granted a 99-year residential property tax exemption on the Gerrard Street East building.

Buying a building in a hot real estate market is not easy, particularly if your focus is typically managing a care agency. “When trying to acquire our building, we found the expertise of a development consultant to be invaluable,” says Carol Zoulalian, Executive Director at St. Jude Community Homes. “He helped us find grants, ensured our finances were in order, made sure our financing application was supported by the right documentation, and generally helped me and our board navigate some very unfamiliar waters.”

Carol then contacted Vancity Community Investment Bank (VCIB) to finance the purchase costs that were outstanding even after the significant MURA contribution. “I’d heard about VCIB through our non-profit housing network,” Carol added. “Once we started working together, VCIB’s experience with the sector and their people-first approach became very clear.”

Chloe Wong, a VCIB Commercial Real Estate Account Manager, underscores the bank’s commitment to advancing affordable housing: “We want to make it easier for housing providers to continue doing their work and making a difference in peoples’ lives.”

Rising interest rates and other factors complicated the application process, resulting in timeline changes that might have derailed their opportunity to purchase the building. “These deals can be a lot of work for a lender, because non-profits and co-ops often need smaller more flexible loans,” Chloe adds. “We understand the sector’s needs, and we don’t shy away from putting in that extra effort.”

VCIB’s willingness to consider the MURA grant funding as equity was another key element of St. Jude Community Homes’ successful lending application. “As an impact-driven lender, we’re familiar with the granting process and the non-profit landscape, plus we’ll work directly with funders,” notes Chloe. “That allows us to see grant money as a source of equity when crunching the numbers. Not all lenders look at it that way,” she adds.

VCIB provided St. Jude Community Homes with a fixed-rate term mortgage of $1.2 million to finalize the purchase of the building at 1845 Gerrard Street East, Toronto. The sale closed in early September 2023.

“It was so wonderful to be able to share this news with our residents,” says Carol. “The teamwork this process required was unbelievable, and we are proud that we did it.” Closing the door on renting, St. Jude Community Homes was able to preserve the 20 units at their Gerrard Street site as affordable housing in perpetuity.

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Learn more about VCIB’s social purpose real estate financing in our website. If interested in chatting with VCIB about your financing needs, get in touch.

Nez currently serves as Vancity’s Senior Vice President of Enterprise Risk and Chief Risk Officer. She has over two decades of experience in the financial sector. As Vancity’s Chief Risk Officer, Nez oversees credit legal services and enterprise risk management. She supports the Board and executive team in delivering on our commitments to our members and local communities.

Nez has worked at Vancity since 2006 and has held progressively senior roles in that time, including leading the branch network, call center, credit adjudication, finance and treasury, and risk management. Nez Joined Vancity after several years in the U.S. financial sector. She has been a senior executive leader at Vancity since 2015.

Nez has devoted significant volunteer time to many community organizations, currently on the Board of Directors for the Vancouver Symphony Orchestra. She has served as a board member for Megaphone Magazine, Pacific Blue Cross and S.U.C.C.E.S.S.

Rita Parikh, chair of Vancity’s Board of Directors, commented: “We’re very pleased to appoint Nez as Vancity’s Interim President and CEO. Nez’s two decades of banking experience and knowledge combined with her strong commitment to our values make her an ideal choice to step into the role of leading the Vancity Group over the next several months.

“She is an accomplished and respected leader among our employees and our stakeholders, and has helped to place Vancity on very secure and strong footing. We know she will expertly guide Vancity, building on the incredibly successful strategy we’ve followed in recent years. Nez has been one of the architects behind the development and execution of our strategic vision with its focus squarely on equity and the wellbeing of people and planet.”

Vancity’s Board of Directors has initiated a comprehensive search process to select a permanent CEO while ensuring the credit union continues to deliver exceptional service, stability and impact to its members and the community.

For more information:
Media Relations | Vancity
mediarelations@vancity.com
T: 778-837-0394

Today, the co-operative housing movement is entering a new phase. As those original mortgages mature and operating agreements expire, many co-ops are looking to refinance their mortgage.   

In 2014, Phoenix Housing Co-operative (pictured above) was the third co-op in Canada to refinance their mortgage for the first time, with help from Canada Housing Federation (CHF).   

“Refinancing a mortgage can be an overwhelming task, especially for those who’ve never done it before,” explains Tanya Taylor, Phoenix Housing Co-operative’s coordinator, pictured right.   

“The first step is to get all the documents needed starting with preservation funding, which is a grant that then helps you get a building condition assessment and energy audit. After you have these documents, you’ll have a better understanding of how much money your co-op needs.”   

This year, Tanya and the team at Phoenix took the next step in their financing journey by renewing their mortgage through Vancity Community Investment Bank (VCIB).   

“Getting all the documents ready can be daunting, that’s where I found VCIB to be very personable” Tanya explains.   

“Whenever I had a question my account manager answered right away, and she gave me a step-by-step checklist of what I needed which made things very easy for me. Many coordinators have told me that this process took them a year, and I re-iterate, it took us three months.”   

A values-aligned partnership  

VCIB is part of the Vancity Group, a group of values-based financial institutions that use finance as a tool to drive positive impact and accelerate the delivery of affordable housing across Canada. Since 2009, Vancity Group has funded investments of more than $1.48 billion to support affordable housing across Canada. And VCIB’s parent company, Vancity Credit Union, has been supporting Canada’s cooperative movement for decades.   

“Today the need for more affordable housing options is greater than ever, and housing co-operatives are critical,” said Eric Visser, Director of Commercial Real Estate at VCIB. “They provide not only a more affordable option but also foster an incredible sense of community, so offering tailored financing to support co-ops is an important part of our mission.”   

Since co‑ops charge their members only enough to cover costs, repairs, and reserves, they can offer housing that is much more affordable than an average private sector rental.  

Phoenix has 59 renovated 3-bedroom townhouses available at market rent, for the low price of 760 dollars a month – with a few members paying reduced monthly rent based on income. As Tanya explains, these 3-bedroom townhouses are well suited for families or young couples starting a family;  

“Our co-op is a family-oriented co-op. With the rising cost of housing right now, it is very difficult for families (specially starting out families) to be able to afford a home, let alone 3-bedroom units like these ones.”  

For Tanya, one of the most rewarding parts of working at Phoenix is the community they have built, and she looks forward to seeing how the children continue to grow.   

“I’ve been here over 13 years, and the children that I met that were 8 or 9 are now adults and getting their own units! And they’re all trying to stay within the community.”  

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Learn more about VCIB’s social purpose real estate financing in our website. If interested in chatting with VCIB about your financing needs, get in touch.

In the weeks leading up to Budget 2023, much of the discussion swirled around how or whether Canada would be able to compete with the US$369 billion the Biden administration had poured into climate and clean energy incentives through the August, 2022 Inflation Reduction Act.¹ On March 28, Deputy Prime Minister and Finance Minister Chrystia Freeland set out to meet the moment with a $491-billion budget featuring future-forward investments to advance Canada’s net-zero economy.

Here is our roundup of highlights from Budget 2023 from the lens of our Climate Finance team:

Tiered Investments Address Eight Strategic Priorities
Pre-budget commentary emphasized the need for Canada to concentrate available resources on aspects of the net-zero transition where the country can either build on its strengths or readily establish new ones. Budget 2023 lays out a tiered investment strategy that treats pollution pricing and the national Clean Fuel Regulations as a cornerstone for three levels of financing:
• An “anchor regime” of investment tax credits;
• Low-cost strategic financing through the Canada Infrastructure Bank and the Canada Growth Fund; and
• Targeted investments to meet specific sectoral needs or support projects of “national economic significance”.

These public commitments are meant to draw significant private sector investment to eight strategic priority areas: electrification, clean energy, clean manufacturing, emissions reduction, critical minerals, infrastructure, electric vehicles and batteries, and major projects.

*

Investment Tax Credits
The budget introduces or expands investment tax credits in the following areas.

Clean Electricity Investment Tax Credit ($6.3 billion through 2028², $19.4 billion through 2035)
Maximum 15% refundable tax credit for eligible investments in:
• Non-emitting electricity generation systems: wind, concentrated solar, solar photovoltaic, hydro (including large-scale), wave, tidal, nuclear (including large-scale and small modular reactors);
• Abated natural gas-fired electricity generation (which would be subject to an emissions intensity threshold compatible with a net-zero grid by 2035);
• Stationary electricity storage systems that do not use fossil fuels in operation, such as batteries, pumped hydroelectric storage, and compressed air storage; and
• Equipment for the transmission of electricity between provinces and territories.

Clean Hydrogen Investment Tax Credit ($5.6 billion through 2029, $12.1 billion through 2035)
15 to 40% tax credit for project costs, depending on the carbon intensity of the production process, plus a 15% tax credit for equipment to convert hydrogen to ammonia for shipping.

Clean Technology Manufacturing Investment Tax Credit ($4.5 billion through 2029, $6.6 billion through 2035)
Maximum 30% refundable tax credit for investments in new machinery and equipment to manufacture or process key clean technologies, and extract, process, or recycle key critical minerals, including:
• Extraction, processing, or recycling of critical minerals essential for clean technology supply chains, specifically: lithium, cobalt, nickel, graphite, copper, and rare earth elements;
• Manufacturing of renewable or nuclear energy equipment;
• Processing or recycling of nuclear fuels and heavy water;
• Manufacturing of grid-scale electrical energy storage equipment;
• Manufacturing of zero-emission vehicles; and
• Manufacturing or processing of certain upstream components and materials for the above activities, such as cathode materials and batteries used in electric vehicles.

Carbon Capture, Utilization, and Storage Investment Tax Credit ($520-million top-up through 2028)
Variable-rate refundable tax credit for eligible expenses, retroactive to 2022
The budget adds to the $7.1-billion CCUS investment tax credit announced in the 2022 budget and extends eligibility to projects aiming to store carbon dioxide in geological storage in British Columbia.

Clean Technology Investment Tax Credit ($6.9 billion through 2028)
30% refundable tax credit for eligible expenses

The budget extends the Clean Technology Investment Tax Credit through 2034, increases the available funds in the short term, and expands its scope to include specific types of deep geothermal projects, on the condition that they not “co-produce oil, gas, or other fossil fuels”.

The tax credits are largely conditional on employers adhering to specific labour standards: to receive the maximum funds available, they must pay prevailing union wages and assign at least 10% of tradesperson hours to registered apprentices in Red Seal trades. Firms that fall short of these standards will see their investment tax credits fall from 15 to 5%.

Reduced Tax Rates for Zero-Emission Technology Manufacturers ($1.3 billion)
The government is extending a provision from its 2021 budget that halved the corporate tax rate for zero-emission technology manufacturers, from 9 to 4.5% for small businesses and from 15 to 7.5% for larger enterprises. The reduced rates will now be available through 2034, and they will also be extended to “the manufacturing of nuclear energy equipment and the processing and recycling of nuclear fuels and heavy water,” beginning in the 2024 tax year. The tax reductions are expected to cost $20 million through 2028 and another $1.3 billion through 2035.

Strategic Finance

Canada Infrastructure Bank ($20 billion)
The budget calls for the Canada Infrastructure Bank to earmark $10 billion each to clean power projects and green infrastructure. “These investments will position the Canada Infrastructure Bank as the government’s primary financing tool for supporting clean electricity generation, transmission, and storage projects, including for major projects such as the Atlantic Loop,” a large power grid megaproject in Eastern Canada for which the budget commits to further negotiations.

Canada Growth Fund ($15 billion)
Originally announced in the 2022 Fall Economic Statement, with a plan to finalize its structure by mid-2023, the $15-billion Canada Growth Fund is meant to “help attract private capital to build Canada’s clean economy by using investment instruments that absorb certain risks in order to encourage private investment in low-carbon projects, technologies, businesses, and supply chains.” Budget 2023 mandates the $225-billion Public Sector Pension Investment Board (PSP Investments) to manage the Fund and states that it will “begin investing in the first half of 2023.”

Targeted Initiatives

Strategic Innovation Fund ($500 million new, $1.5 billion existing)
The federal Strategic Innovation Fund will allocate $500 million in new funding and $1.5 billion from existing resources to projects in “clean technologies, critical minerals, and industrial transformation”. The budget notes that the Fund has created or maintained 105,000 jobs across 107 projects since 2018, using $6.9 billion in contributions to leverage $67 billion in private investment. Examples to date include:

• 200 million to Algoma Steel in Sault Ste. Marie, Ontario, to support a shift to lower-emission electric steelmaking;
• $47.5 million to Moltex Energy Canada Inc. in St. John, New Brunswick, for small modular nuclear reactor research and technology development;
• $25 million to Burnaby, B.C.-based Svante Technologies to develop carbon capture technology for heavy industrial emitters.

Clean Electricity Projects ($3 billion)
The budget earmarks $3 billion over 13 years for three categories of clean electricity projects that include the popular Smart Renewables and Electrification Pathways Program, originally an eight-year initiative that launched in 2021 and worked its way through its initial $964-million budget and a $600-million top-up in less than two years. SREP is to share the $3-billion allocation with a renewed federal Smart Grid program and new investments in science-based activities to support offshore wind development off the coasts of Nova Scotia and Newfoundland and Labrador.

Clean Fuels Fund
The budget lists potential opportunities in bioenergy development across the 10 provinces and commits to explore possible support mechanisms with the industry.

Carbon Contracts for Difference
The budget opens a discussion on carbon contracts for difference³ as a tool to make the carbon pricing that backstops future investments more predictable and help “derisk major projects that cut Canada’s emissions.” The budget document says contracts for difference “allow companies to plan ahead, supporting the growth of Canada’s clean economy by making clean projects more cost-effective than more polluting projects.” The approach has seen considerable discussion recently as a way to protect federal cleantech investments from being overturned by a future government.

VCIB Comments

On the whole, the budget has largely been seen as a transformative win and a moment of opportunity to jump-start energy transition investment in Canada.

“The federal commitments and incentives outlined in Budget 2023 will provide a much-needed boost to accelerate the deployment of decarbonization technologies”, said Trish Nixon, Managing Director of Climate Finance at VCIB. “The race to net-zero is our most urgent priority, and we are motivated to work with existing and new borrowers as well as public sector partners to finance more projects, faster.”

For more on VCIB’s climate financing or to talk to us about your clean energy project or energy efficiency retrofit, visit our website or contact us.

¹ https://www.whitehouse.gov/cleanenergy/inflation-rduction-act-guidebook/

² All time references for funding initiatives are based on the federal fiscal year, which runs from April 1 to March 31.

³The Canadian Climate Institute published an explanation of this investment tool last week: https://climateinstitute.ca/what-are-contracts-for-difference/.

*Reproduced with the permission of the Department of Finance, 2023

“We’ve been looking to expand our responsible investments in a way that directly benefits people in our community,” says Jacky Shen, director of SFU’s treasury department. “VCIB supports projects that align with our values and we’re proud to be the first Canadian university to invest with them.”

Universities and other institutional investors appreciate the Impact GIC as a safe and secure way to invest at competitive rates, while supporting transformational change in their communities and meeting the needs of their students and other stakeholders.

“Universities can be significant platforms for societal and environmental change, and they have the power and resources to create positive impact beyond the campus boundary,” notes Jennifer Hutcheon, Vice President at VCIB. “When responsible investors like SFU choose to invest with VCIB, they are choosing to support tangible, impact-driven projects that advance the change we need to see in the world.”

Vancity Community Investment Bank (VCIB) is part of the Vancity Group and a recognized leader in impact investing. With a 100% impact mandate, VCIB is the only bank in Canada that exclusively finances organizations and enterprises that drive social, economic and environmental change. This means that all projects must make a measurable contribution to building equitable and sustainable communities as a requirement for financing approval.

“Our impact lending requirements set a high threshold,” adds Hutcheon. “But when all loans are guaranteed ‘impact’, depositors are assured that their investments support only impact-driven projects. When you add the flexibility of the cashable option plus competitive returns, the Impact GIC is most definitely an attractive choice for institutional investors.”

The Impact GIC at work

With funds from Impact GICs, VCIB’s climate finance team supported the Six Nations of the Grand River Development Corporation’s clean energy portfolio by refinancing the Niagara Region Wind Farm, the second largest wind farm in Ontario. In British Columbia, VCIB financed an innovative residential retrofit project where geoexchange technology provides low-cost, clean and efficient heating and cooling for nearly 250 homes. More recently, VCIB financed an innovative partnership with Vancouver-based Seven Generation Capital to advance the electrification of Canada’s freight transportation sector.

A considerable amount of VCIB’s funds on deposit have been used to increase housing affordability across Canada. Examples include financing to support Habitat for Humanity’s development of 414 affordable housing units in the next three years, and Union Co-operative’s preservation of 58 affordable apartments in Ontario.

“There are many worthy projects VCIB has supported to date that are making a difference,” says Shen. “We’re eager to see what kind of impact our deposit can help make, while providing the university a healthy return on its investment.”

See a showcase of VCIB’s work in this Impact GIC video and learn more about Vancity Group’s work in impact banking at rethink.vancity.com.

An established community with many long-term tenants, the Lancaster buildings have 58 two-bedroom units. Union Co-operative plans to add another two accessible apartments within the existing buildings, and to undertake projects that reduce the buildings’ environmental impacts and energy consumption.

More than 200 individuals who live, work, or have a connection to Waterloo Region have chosen to become members of Union Co-operative. Members were able to invest in the purchase of the Lancaster buildings.

In addition to member investments, a number of impact investors came on board to support the purchase: Waterloo Region Community Foundation, Lyle S. Hallman Foundation, Canadian Co-operative Investment Fund, Vancity Community Foundation, Atkinson Foundation, Fairmount Foundation, VERGE Capital, Bealight Foundation, Forthlane Partners, Nexus Church, Kelly and Mike Peasgood, and Allyson and Dave Kroetsch. By bringing together community members and impact investors to purchase this property, Union Co-operative has built a unique model to serve as Waterloo Region’s community land trust.

Vancity Community Investment Bank (VCIB) provided first mortgage financing of $8.45 million and helped the project secure additional impact investment funds from the Affordable Housing Accelerator Fund at Vancity Community Foundation. “We are grateful for the opportunity to work with VCIB, as they have a deep understanding of affordable housing and their values-based approach means they work with you to make these projects a success,” said Union Co-operative’s Executive Director, Sean Campbell.

Union Co-operative received an additional $1.5 million in fixed-interest bridge financing from the Canadian Co-operative Investment Fund (CCIF). This bridge financing allowed Union Co-operative to complete the purchase on market timelines and continue raising funds after closing.

The population of the Kitchener-Cambridge-Waterloo area grew by 9.9% from 2016 to 2021. That growth, alongside galloping price increases in the housing market and recent inflationary pressures, has meant that the cost to rent a vacant two-bedroom unit in Kitchener has increased by 24% in the past year to $2,300 per month. While there are much-needed government programs to build new affordable units, there are currently no programs to preserve existing low-rent apartment units.

“Preserving affordability is just the first step,” said Campbell. “We’re excited to invite tenants to become co-op members, join the board, and collaborate on sustainable property improvement decisions.” The co-operative is also planning to create a rent relief fund, connect with community organizations to establish supports for tenants in need, and develop policies that will guide the intentional selection of tenants facing barriers to accessing housing. “Union Co-operative is working to make a difference in our community, and we’re thankful to our members, impact investors, funders, and VCIB for helping to make the acquisition of our first property a reality.”

Waterloo Region Community Foundation (WRCF) was the first foundation impact investor to join the project. “WRCF continues to focus on taking action to create and preserve affordable housing across our region,” said John Bowden, WRCF’s Director of Financial Services. “We applaud Union Co-operative for their innovative approach in our community and we are extremely pleased to be joined by other impact investors on this journey.”

“The partnership between Union Co-operative, impact investors, and Vancity Community Investment Bank is an inspirational example of what can be done to solve the affordability crisis,” said Jennifer Hutcheon, Vice President at VCIB. “I’m so pleased that VCIB could support this impactful deal, which will result in real—even life-changing— benefits to the individuals and families who call the Lancaster buildings home.”

Learn more about Union Co-operative and its commitment to preserving affordability in Waterloo Region at unionsd.coop. Details on the Vancity Group’s commitment to affordable housing and the Affordable Housing Accelerator Fund can be found on Rethink and vahaf.ca.

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About Union: Sustainable Development Co-operative (Union Co-operative)

Union Co-operative is working to buy residential and commercial properties in Waterloo Region for permanent affordability through community ownership. The co-operative was founded in response to rising rental rates in Waterloo Region that are becoming unaffordable for a growing share of residents and local businesses. Learn more about Union Co-operative at www.unionsd.coop.

About Waterloo Region Community Foundation (WRCF)

Waterloo Region Community Foundation collaborates with partners to create sustainable, equitable and thriving communities. We connect regionally and locally, working with three cities and four townships – to include the people and places across our region. Together, we develop forward-thinking innovative solutions and seize opportunities to meet current and future needs of our community. We make philanthropy easy for individuals and companies to support organizations and issues they care about. WRCF is focused on Granting, Impact Investing and Convening to make measurable and sustainable impacts. Gifts are directed to WRCF’s endowed funds that drive positive change through grants with the income generated being distributed in partnership with Fundholders to support a wide range of charitable causes within our community. A portion of the endowed funds are also used for impact investments that deliver both financial returns as well as positive social or environmental outcomes. As a leading community-building organization we also work to amplify voices and issues of importance by convening conversations and sharing information, while approaching our work with an equity mindset.

About the Canadian Co-operative Investment Fund (CCIF)

The Canadian Co-operative Investment Fund is an impact investment fund created to support the capital needs of co-operatives across sectors, across Canada. CCIF provides debt, bridge financing, hybrid and equity financing for non-profit and for-profit co-operatives to start up and to help them grow. To find out more about CCIF and the financing available to help co-operatives, visit ccif.coop or email info@ccif.coop.

About Vancity Community Investment Bank (VCIB)

Vancity Community Investment Bank is an Ontario-based, Schedule I federally chartered bank and a subsidiary of the Vancity Group. As the only values-based bank in Canada, VCIB provides specialized financing solutions for impactful projects like social purpose real estate and clean energy projects. For purpose-driven businesses and organizations, VCIB offers banking, investing, and financing solutions tailor-made to increase their growth and impact. VCIB is a Certified B Corporation and a member of the Global Alliance for Banking on Values. To learn more about our partnership-based approach to banking, visit vcib.ca, tweet us at @BankVancity and connect with us on LinkedIn.

Media Relations
mediarelations@vancity.com
T: 778-837-0394

The Affordable Housing HISA also offers:

• A variable interest rate: Prime less 1.85%
• No management fees
• Interest paid monthly
• 5 free outgoing transactions a month
• CDIC insurance up to $100,000

Who is eligible for the Affordable Housing HISA?

Why choose the Affordable Housing HISA?

Protect your savings, invest in your community

Rising cost of living, increasing energy costs, and more extreme weather events mean that improving the comfort and energy efficiency of homes is top of mind for many Canadians. The ongoing operation of Canada’s homes and buildings accounts for 17% of the country’s greenhouse gas emissions. Energy efficiency retrofits are one way to make homes more climate-ready and comfortable. The upfront costs of carrying out a retrofit can be daunting, even though these expenses can be offset by long-term savings. The City of Ottawa is addressing some of these concerns with its specialized loan program.

The Better Homes Ottawa Loan Program offers 20-year, low-interest loans from $15,000 to $125,000. Homeowners will repay the loans to the City of Ottawa via a local improvement charge attached to their property tax bill. Linking the loan to the property encourages owners to move forward with long-term retrofits without the worry that they will be unable to recoup their expenses should they wish to sell. At the time of sale, the new homeowner will assume the balance of the loan, while also benefiting from reduced energy expenses for the duration of their ownership.

Eligible upgrades include new windows and doors to enhance the building envelope, heat pumps or other energy efficient HVAC appliances, and solar or geothermal technologies which make use of renewable energy. The program is estimated to reduce individual household greenhouse gas emissions by 30% per year.

“The Better Homes Ottawa Loan Program is a further demonstration of the City of Ottawa’s ongoing commitment to reducing its carbon footprint, while supporting residents to do the same,” said Mark Martin, a manager within the City of Ottawa’s Finance Department who has worked closely with the Climate Change and Resiliency team responsible for the Better Homes Ottawa Loan Program. “On top of the innovative Better Homes Loan program, the city is the largest municipal issuer of green bond financing in Canada.”

VCIB’s partnership helped make this program possible, as private capital was required for the City of Ottawa to access $12.2 million in funding through the Federation of Canadian Municipalities’ Green Municipal Fund. The first $3.9 million financing drawn from VCIB provided capital for the very successful pilot program. The second tranche of $30 million will allow the program to expand to many more residents, greatly increasing its impact.

“VCIB is committed to helping the public take action on climate change,” said Jonathan Frank, VCIB’s Head of Business Development, Clean Energy. “The Better Homes Ottawa Loan Program’s successful start proved that there is appetite for residents to do their part in reducing emissions. With attractive financing options and supporting public and private partnerships in place, these kinds of municipal programs can have a huge impact and will help Canada move closer to its net-zero goals.”

VCIB believes the climate crisis requires immediate action and financial institutions have a critical role to play in addressing it. Designed to advance the low-carbon transition, VCIB’s financing for this program supports the Vancity Group’s ambition to be net-zero by 2040 across all mortgages and loans. This partnership builds on other Vancity programs to support non-profit housing providers with climate-friendly retrofit projects and offer a free energy advice program for Vancity members.

VCIB’s experts support the development of clean energy and energy efficiency projects across Canada. For more information about VCIB’s clean energy financing, visit vcib.ca/clean-energy.

About Vancity Community Investment Bank

VCIB is an Ontario-based, Schedule I federally chartered bank and a subsidiary of the Vancity Group. As the only values-based bank in Canada, VCIB provides specialized financing solutions for impactful projects like social purpose real estate and clean energy projects. For purpose-driven businesses and organizations, VCIB offers banking, investing, and financing solutions tailor-made to increase their growth and impact. VCIB is a Certified B Corporation and a member of the Global Alliance for Banking on Values. For more information, visit vcib.ca, tweet us at @BankVancity and connect with us on LinkedIn.

About the Better Homes Ottawa Loan Program

Through this program, Ottawa homeowners can access low-interest, 20-year loans to cover the cost of home energy improvements. Loans can be used to cover the cost of energy efficiency retrofits, renewable energy systems, climate adaptation measures, and secondary suites. Learn more about the program here: Better Homes Ottawa – Loan Program.

Media Contact

mediarelations@vancity.com
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VCIB’s $3.2-million loan has paved the way for 7Gen to lease the equipment to GoBolt, a tech-enabled provider of sustainable fulfillment and last mile logistics for retailers and ecommerce brands. This EV fleet is estimated to reduce CO2 emissions by 4,140 tonnes over the trucks’ seven-year lease period. This accounts for an annual reduction of 491 tonnes compared to using internal combustion engine trucks.

The partnership between VCIB and 7Gen showcases a new way of business that facilitates the EV fleet transition – a business model made possible thanks to project developers such as 7Gen that offer an end-to-end fleet electrification package. 7Gen’s innovative service offering helps companies understand the various cost structures and select the trucks that work best for them, as well as navigate and choose the best EV infrastructure suppliers for their needs. There are similar companies in the United States that operate “as-a-service” business models to help small and mid-size logistics operators overcome the challenges of transportation electrification, but 7Gen is the first company to launch this type of service in Canada, supported by financing from VCIB.

The road transportation sector accounts for approximately 21 per cent of Canada’s total greenhouse gas emissions, and reducing these emissions is critical to achieving the federal government’s ambitious climate change commitments. While the availability of zero-emission fleet options is growing, and there are a few examples in operation, the deployment of fully electric commercial delivery vehicles in Canada is still in its infancy.

“The opportunity for a cleaner future is huge as we make one of the biggest economic pivots in history,” said David Berliner, VCIB’s Head of Clean Energy Deal Structuring. “Innovative financing for the EV industry is the missing piece to scale the net-zero transition. Our partnership with 7Gen aligns with our net-zero climate commitment and provides cost savings while advancing cleaner transportation systems in Canada,” David continued.

“7Gen appreciates the commitment of Vancity Community Investment Bank to help us secure debt financing to enable our last mile delivery client to accelerate their deployment of zero emission vehicles. We will need more financing institutions to value carbon reductions in their capital allocations to realize societal climate positive goals. Additionally, we are seeing more shippers who are including zero emission transportation requirements in their tenders. These are big drivers in motivating carriers to commit to ZEV deployments”.

Frans Tjallingii, CEO, 7Gen

“GoBolt is excited to accelerate the transition to zero-emission vehicles for logistics and last-mile delivery and working with trusted partners like 7Gen and VCIB allows us to move quickly and confidently to achieve our goals.”

Chris Taylor, Vice President, Strategic Initiatives at GoBolt

VCIB’s financing for 7Gen builds on the bank’s track record of financing first-of-its-kind cleantech business models and clean energy projects, including:

1. VCIB’s clean energy team supported the Six Nations of the Grand River Development Corporation’s clean energy portfolio by providing a $32.5 million loan to refinance the Niagara Region Wind Farm, the second largest wind farm in Ontario. The project’s profits will be directed back into the Six Nations community and will be used to stimulate economic opportunity, purchase critical infrastructure, and finance support services like mental health and suicide prevention programs.

2. VCIB provided a $3.81 million loan for a residential geoexchange project that provides heating and cooling for 246 residential properties in British Columbia.

3. In 2021, VCIB financed the world’s largest wastewater energy transfer project, operated by Noventa Energy Partners. The $38 million project, which was also funded in part by the Government of Canada, will produce enough thermal energy to supply 90% of Toronto Western Hospital’s heating and cooling needs. This is one of the first projects of this scale to use raw municipal wastewater from a sewer.

4. On June 16, 2022, VCIB formed an impact partnership with Accelerate – Canada’s Zero-Emission Vehicles (ZEV) supply chain alliance. The partnership will support Accelerate’s efforts in advancing ZEV adoption and developing a strong ZEV supply.

About Vancity Community Investment Bank (VCIB)

VCIB is an Ontario-based, Schedule I federally chartered bank and a subsidiary of Vancity Credit Union. As the only values-based bank in Canada, VCIB provides specialized financing solutions for impactful projects like social purpose real estate and clean energy projects. For purpose-driven businesses and organizations, VCIB offers banking, investing, and financing solutions tailor-made to increase their growth and impact. VCIB is a certified B Corporation and a member of the Global Alliance for Banking on Values. For more information, visit vcib.ca, tweet us at @BankVancity and connect with us on LinkedIn.

About 7Gen

7Gen is an electric vehicle (EV) and charging infrastructure leasing company, focused on working with medium and heavy-duty fleets. 7Gen aims to make EV integration easier as an obvious alternative to current internal combustion engine equivalents. It provides turnkey EV-as-a-service fleet electrification execution support, financing, and software for fleet managers, marine terminals and airports that want to join the EV revolution. To learn more, visit 7gen.com.

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