Why Not Retrofitting the Principal Home using EnerPHit standard When Building a New Laneway Suite?

I think that the City of Toronto's initiative to allow homeowners with properties abutting a public laneways to build laneway suites at the back of their principle house is a good one. In this short article I'm trying to make the case that home owners wishing to benefit from the federal government's financial program to build a new laneway suite, might as well consider renovating their principal home to "Energy Star" level or, while at it, to a Passive House standard. The retrofit of existing building to become a Passive House is called EnerPHit.

But first things first: what is a laneway suite?.

The laneway suite *

Laneway suite is a small house on the same lot as a detached house, semi-detached house, or townhouse, generally located in the rear yard abutting a laneway within the City of Toronto. They are subordinate in scale, completely detached from the main house, and may have outdoor access via both the side yard of the mainhouse, and the lane.

There are requirements for setbacks from property lines, separation from the principal residence, and soft landscaping for the property. There are also specific guidelines for building height based on the size and layout of your existing dwelling, and restrictions on the shape (or even existence) of the second storey.

The laneway suites are not severed plots but part of the house lot and should be rental units and can not be transferred to another owner. The size is to be as per the City of Toronto guiding principles, is to be subordinate to the principal house and is allowed to be developed with a zoning variance (as-of-right). However, not all properties abutting a lane can have alaneway suites development. The zoning bylaw governing Laneways suites can be found in chapter 150 Specific Use Regulations and following sections 150.8 Laneway Suites.

Where can laneway suites be built?

It is crucial to know that your lot meets the requirements set out by the new By-lawamendments before you start planning anything. If your property is inside the eligible boundary, is at least 3.5 meters wide at the rear, abuts a lane by 3.5 meters or more, and allows for amaximum travel distance of 45 meters for emergency services (either throughside lot clearance of at least 1 meter or proximity of the Suite's entrance toa public street) good news! Your property may qualify for the development of aLaneway Suite. For those people in the middle of rowhouse units (with no side lot clearance), in the middle of a block (which is more than 45 meters from apublic street), the property might not qualify.

(source 1: https://www.atenaconstruction.com/wp-content/uploads/2021/06/LANEWAY-HOUSING-BENIFITS.pdf)

(source 2: https://www.toronto.ca/wp-content/uploads/2021/10/9739-CityPlanningLanewaySuitesOct2021.pdf).

‍Incentives to Build Laneway Suite from the Federal Govenment

The Affordable Laneway Suites Pilot Program

The Affordable Laneway Suites Pilot Program provides funding in form of a forgivable loan of up to $50,000 for eligible property owners developing a laneway suite. The loan will be forgiven in 15 years from the datewhen the first tenant occupies the laneway suite. The rent being charged can not exceed the City of Toronto Average Market Rent, by bedroom type at any time during the 15 year affordability period, as reported annually by Canada Mortgage and Housing Corporation CMHC. This Program was approved by Council in June of 2018.

‍Development Charges

The Development Charges (DC) Deferral Program for Ancillary Secondary Dwelling Units allows for a DC deferral for eligible property owners developing a secondary dwelling unit at the rear yard of a property. The DC would only be collected through creation of a new lot (Plan of Subdivision, Plan of Condominium and Consent to Sever) within 20 years of the issuance of the building permit. Property must be located within an area permitted by By-laws 810-2018 PDF and 1210-2019 PDF must conform with applicable zoning and other by-laws as determined by Toronto Building must have applied for building permit must enter into a DC Deferral for Ancillary Secondary Dwelling Units Agreement with the City (need a lawyer). You can see the form for the defferal charges here: https://www.toronto.ca/wp-content/uploads/2019/10/8e59-DC-Laneway-Agmt-for-circulation.pdf

Construction Cost

Expert respondents note that the cost of constructing a laneway suite is generally high as laneway suites are required to include many of the features of principle buildings including kitchen and bathroom facilities and require the extension of services from the street line. Further, taxes, design,application, and development fees are also required through the process of developing a laneway suite. (https://www.toronto.ca/wp-content/uploads/2021/10/9739-CityPlanningLanewaySuitesOct2021.pdf)

Providing Fire Department Access

In the event of an emergency Toronto Fire Service needs tobe able access every building in the city with fire fighting and other emergency equipment. This requirement is critical to save lives and is why the Ontario Building Code (OBC) requires new laneway suites have acceptable emergency access that meets the operational requirements of Toronto Fire Services.

What about Passive House?

Now that we know how this laneway suite program works, and as I mentioned at the opening of this article, I want to make the case that home owners wishing to benefit from the federal government's incentive to build a new laneway suite, might as well consider renovating their principal home to super energy-efficient levels. I'm tryint to link here the retrofit of the existing principal home with the most efficient building standards out there; the Passive House and its certification designed for existing buildings.

Bringing up the performance of the principal house does have another type of financial incentive that the government of Canada has dedicated to help home owners save energy and make their homes more comfortable and healthier. The Canada Greener Homes Grant will help homeowners save money, create new jobs across Canada for energy advisors, and fight climate change.

EnerPHit is Passive House for existing buildings

EnerPHit is the established Standard for refurbishment of existing buildings using Passive House components or the energy demand method via climate zone. Through the use of Passive House components, EnerPHit certified buildings offer nearly all the advantages of a Passive House buildingto the residents – while at the same time offering optimum cost-effectiveness.

An EnerPHit retrofit includes the insulation of the floor, exterior walls and roof with Passive House insulation thicknesses, installing Passive House windows and reducing air leaks. A ventilation system with heat recovery ensures reliable fresh air. Thermal bridges are reduced to a reasonable extent. (source: https://www.passivehousecanada.com/enerphit-certification/).

Can this benefit from the Green Home Retrofit grant?

Homeowners can benefit from the green home retrofit grant but applicants must also meet some other conditions before applying: for example they must prove they live in the house; landlords who liveoff-site are not eligible. The home must be a single or semi-detached house, arow house, a townhome, an all-season cottage or a certain type of mobile homeor houseboat. Although condos generally aren't eligible, condo owners inlow-rise buildings may qualify. First Nation band councils, land claimsorganizations and Indigenous housing management bodies can apply for the grant.New homes are not eligible.

Which upgrades qualify?

According to Natural Resources Canada (NRCAN), the federal department that administers the program, the projects that qualify for the grant are: Insulation (up to $5,000), Air-sealing to improve air-tightness (up to $1,000), Replacing windows and doors (up to $5,000), Installing heat pumps and hot water equipment (up to $5,000), Installing solar panels (up to $5,000), Resiliency measures like batteries, foundation waterproofingand roofing membranes (up to $2,625), Installing a smart thermostat (up to $50 but must be combinedwith another retrofit), Materials and equipment, NRCAN says, must be purchased in Canada or from a Canadian online distributor.

Why not use this grant to do a super efficient but comprehensive retrofit? an EnerPHit?

Why not let EnerPHit takes care of all the above retrofits and get all the financial incentives?

Achieving the "status" or certification of EnerPHit is not what I'm trying to advocate, but retrofitting based on the EnerPHit instead of the unorchestrated renovations based for example on Energy Star. The EnerPHit can lead to reducing your energy pricipal demand by 75% of th existing demand. You won't be able to do that with any other energy efficient program.

So in conclusion, I think that this is a great opportunity for homeowners or developers to consider the idea that while going through designing and building a laneway suite to provide an urgently needed rental units, to consider retrofitting the principal house to a higher energy-efficient standard?.

I'm extending this very concept further through investigating the possibility of doing this retrofit based on one of the best energy-efficiency building standards in the world which will not only save you thousands of dollars in heating, but you'll be also prioneer the urgent task of fighting global warming through minimizing fossil fuel combusting, and as attractively reap a high ROI once you decide to sell.

* Learn more about EnerPHit program and certification in this link.

If you need help with the design or application for a laneway suite or to retrofit your existing home to the EnerPHit or Passive House standard, feel free to contact us at info@isdarchitects.com or call 647-697-8840 to book an appointment.

For more information about Passive House benefits and why it is a winner please watch short video below.

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