Funding for Residential Resilience Financing Support (Canada)

The Residential Resilience Financing Initiative provides financial support to municipalities and their partners to expand Property Assessed Clean Energy (PACE) financing programmes and integrate climate resilience improvements into residential energy efficiency financing initiatives. The programme helps communities finance retrofit projects that protect existing homes from climate-related hazards such as flooding, extreme heat, severe storms, wildfire, and drought.

The initiative supports the development of resilient communities by increasing access to financing for home upgrades that reduce climate risks while encouraging equitable, community-focused programme design.

About the Residential Resilience Financing Initiative

The Residential Resilience Financing Initiative supports the design and expansion of financing programmes that enable homeowners to invest in climate resilience improvements through the Property Assessed Clean Energy (PACE) model or another financing approach approved by the Green Municipal Fund (GMF).

The programme aims to strengthen existing residential buildings by supporting financing mechanisms that encourage climate adaptation and resilience while complementing local energy efficiency initiatives.

Programme Objectives

The initiative aims to:

Expand local residential PACE financing programmes.
Integrate resilience improvements into residential energy efficiency financing.
Increase community resilience to climate-related hazards.
Support municipalities in developing effective financing models.
Promote equitable access to climate adaptation financing.
Strengthen long-term sustainability of residential communities.

Priority Focus Areas

Projects should address one or more climate hazards affecting residential communities.

Eligible focus areas include:

Rain and flooding
Extreme heat
Severe weather, including wind and hail
Wildfire
Drought

Applicants must clearly identify the climate hazards relevant to their communities and explain how proposed resilience measures address these risks.

What is Property Assessed Clean Energy (PACE) Financing?

Property Assessed Clean Energy (PACE) financing is a financing model that helps property owners pay for energy efficiency, renewable energy, and climate resilience improvements through property-based repayment mechanisms.

Under this initiative, PACE financing is used to support resilience upgrades that reduce climate risks for residential properties while improving long-term community sustainability.

Applicants may also use another financing model if it has been approved by the Green Municipal Fund (GMF).

Funding Available

The initiative offers financial support through:

Grants
Loans
Credit enhancements

Programme Design Study Grants

Funding includes:

Up to 80% of eligible project costs
Maximum grant of $150,000 for programme design studies

Additional financing opportunities may be available for approved projects through other GMF funding mechanisms.

Eligible Projects

Projects must:

Use a Property Assessed Clean Energy (PACE) financing model or another financing model approved by GMF.
Focus on existing low-rise residential properties.
Incorporate resilience improvements that address climate hazards.
Strengthen local residential financing programmes.

Eligible residential building types include:

Detached homes
Semi-detached homes
Row housing
Other similar low-rise residential buildings

New construction projects are not eligible.

Eligible Studies

Programme design studies must include:

An existing residential energy efficiency PACE programme that is already operational or under development.
A clear justification for the selected climate hazard.
A focus on at least one eligible climate hazard.
A financing strategy for resilience improvements.

Applicants are responsible for determining:

Household-level climate vulnerability assessments.
Appropriate retrofit measures.
Eligible resilience upgrades.

Who Is Eligible?

The initiative is designed for:

Municipalities
Municipal partners
Organisations working with municipalities on residential financing programmes

Applicants should have municipal participation and support for the proposed programme.

Evaluation Criteria

Applications will receive stronger consideration if they demonstrate:

Equitable programme design.
Reconciliation with Indigenous communities.
Anti-racism principles.
Equity, diversity, and inclusion.
Inclusive community engagement.
Transparent decision-making processes.
Long-term support for post-disaster resilience and recovery.

Projects should clearly explain how these principles will be incorporated into programme implementation.

Ineligible Projects

The following projects are not eligible for funding:

Pilot programmes.
New residential construction.
Projects without municipal participation or support.
Projects located where PACE legislation does not permit resiliency financing.
Programmes without a financing component.
Projects focused solely on non-residential buildings.
Projects that do not address at least one eligible climate hazard.

Applicants should carefully review these restrictions before submitting an application.

Why This Initiative Matters

Climate-related disasters are becoming more frequent and costly for homeowners and municipalities.

The Residential Resilience Financing Initiative helps communities:

Improve climate adaptation.
Reduce long-term disaster recovery costs.
Protect residential properties.
Encourage sustainable financing solutions.
Increase homeowner access to resilience improvements.
Support climate-resilient community planning.

The initiative promotes proactive investment in resilience rather than relying solely on disaster recovery funding.

How to Apply

Applicants should follow these steps:

Confirm eligibility and municipal participation.
Develop or identify an eligible residential PACE financing programme.
Select the climate hazard(s) the project will address.
Design resilience financing measures for eligible residential properties.
Prepare the required programme design study and supporting documentation.
Demonstrate equitable programme design and community engagement.
Submit the application according to GMF requirements.

Applicants should ensure that all required information is complete before submission.

Common Application Mistakes to Avoid

Applicants should avoid:

Proposing projects for new residential construction.
Submitting pilot programmes.
Excluding municipal participation.
Failing to include a financing component.
Targeting only commercial or non-residential properties.
Not identifying an eligible climate hazard.
Providing insufficient justification for selected resilience measures.
Ignoring equity and inclusion considerations during programme design.

Well-prepared applications should clearly demonstrate both climate resilience benefits and financing feasibility.

Frequently Asked Questions (FAQs)

What is the Residential Resilience Financing Initiative?

It is a funding programme that supports municipalities in expanding residential PACE financing and integrating climate resilience improvements into existing residential financing programmes.

How much funding is available?

Programme design studies can receive grants covering up to 80% of eligible costs, with a maximum grant of $150,000.

What properties are eligible?

The initiative supports existing low-rise residential buildings, including detached, semi-detached, and row houses.

What climate hazards are eligible?

Projects may address flooding, heavy rainfall, extreme heat, severe weather, wildfire, or drought.

Can new construction projects apply?

No. The programme only supports existing residential properties.

Is municipal participation required?

Yes. Municipal involvement and support are required for eligible projects.

What types of financing models are accepted?

Projects must use the Property Assessed Clean Energy (PACE) financing model or another financing model approved by the Green Municipal Fund (GMF).

Conclusion

The Residential Resilience Financing Initiative provides municipalities and their partners with valuable funding to expand residential PACE financing programmes and strengthen climate resilience in existing homes. By supporting financing solutions for resilience upgrades that address flooding, extreme weather, wildfire, drought, and extreme heat, the initiative helps communities reduce climate risks, protect homeowners, and build more sustainable and resilient neighbourhoods for the future.