Thank you, Madam Chair.
Good afternoon, committee members. Thank you for the opportunity to speak today. My name is Aaron Thornell. I'm the manager of programs and operations for the Ottawa Climate Action Fund. OCAF is a non-profit based here in Ottawa, focused on reducing greenhouse gas emissions while fostering positive social and economic outcomes. We do so through a combination of granting, direct investing and programming. Like Mr. Moreau, OCAF is a member of the low-carbon cities Canada network. We've been grateful to be part of that network and learn from each other.
I first wish to commend the committee on its in-depth analysis of home energy efficiency retrofits for Canada's housing stock. I'll begin by echoing what other witnesses have said in previous meetings: When done well, energy efficiency policy is much more than climate policy. It is housing, public health, affordability and economic development policy all at once.
My first recommendation to the committee would be to highlight the need for alignment of federal programming and funding with provincial utility and municipal offerings. To illustrate this, I'll recount an experience from my previous role working at the City of Ottawa on the ongoing better homes Ottawa loan program. This municipally led program, which leverages the PACE financing model we've spoken about already several times during this meeting, was launched in Ottawa with the help of funding from the Federation of Canadian Municipalities. The City of Ottawa was able to provide 20-year interest-free loans to support deep home energy efficiency retrofits.
Out of the gate, the program's uptake was substantial, with program demand outstripping available funding within about three months. With an eye toward longer-term sustainability, the city approached private financiers to recapitalize the program, and ultimately pulled in $30 million from the Vancity Community Investment Bank to extend the program. Just two weeks later, however, the federal government announced the launch of the greener homes loan program, offering loans with 0% interest nationwide, which effectively undercut the offer the city had just secured.
While I'm not here to suggest that the greener homes loan program was a negative program overall—it spurred thousands of retrofits across the country—alignment between levels of government would have supported a more cohesive retrofit offering in the city of Ottawa, reduced confusion for the end-user and ultimately produced a more sustainable retrofit ecosystem here in the nation's capital.
My second recommendation, which others have mentioned before me, would be to shift away from the boom and bust cycle of incentives and grant programs. A move toward a financing-focused ecosystem for middle- and higher-income households and private sector operators would move Canada toward a more mature and sustainable energy retrofit ecosystem. As you have heard from others, such as Mr. Moreau and Brendan Haley from Efficiency Canada, we have examples of places like Australia and the United States from which to draw inspiration for these types of green bank models.
Finally, and perhaps most importantly, I would encourage the committee to consider ways in which federal efficiency policy and funding can complement the country's overarching housing goals. A key focus for OCAF is the intersection of affordable housing and climate action, particularly how retrofits can help preserve existing affordable housing stock, home to many of our most vulnerable residents. Here in Ottawa, analysis shows that for every one unit of affordable housing that is built, we lose 31 through demolition, rental increases and renovictions.
To this end, we recommend providing focused funding for non-market housing retrofits, specifically capital work, through the recapitalization of such programs as the Canada greener affordable housing program and the previously offered co-investment renewal and repair stream, both offered through CMHC. This should be accompanied by supports for housing providers to plan and tackle what can be complex and time-consuming projects. Where opportunities present themselves, combining this funding with the recently announced Canada housing acquisition fund would further enable timely retrofits for community housing providers at opportune times of turnover and ownership. Similarly, we've seen targeted incentives and low-interest loans to be better suited to private market affordable housing, sometimes referred to as naturally occurring affordable housing. This funding should continue and be accompanied, where appropriate, by tenant protection measures.
I'll conclude with this. It is critical that we preserve these affordable housing units and, more importantly, provide those living there with dignified, resilient and safe places to call home. As our climate continues to become more volatile and our affordable housing stock ages, ensuring that these homes are preserved and prepared is an opportunity that cannot be overlooked.
Thank you. I look forward to answering any questions from the committee.