Asset management concepts

Learn definitions for common asset management terms

Guide

Below is a list of key asset management concepts.

Asset management: A formalized and integrated approach to planning and budgeting for municipal infrastructure needs, which considers a wide variety of data from across an organization with the long-term vision of the community in mind.

Asset inventory: A list of assets owned and the attributes of the assets. Basic inventory data includes attributes such as size, material, location and installation date. Expanded inventory data includes additional information such as location (coordinates), criticality, and supplementary information that is relevant for the asset class (such as type, make, model, and design capacity).

Asset management (AM) plan: A detailed plan that outlines how assets will be managed in one or more service areas. An asset management plan identifies how assets will be maintained and renewed, and the cost, level of service and risk considerations in each service area.

Asset management (AM) policy: Outlines a municipality’s commitment and mandated requirements for asset management. A policy is linked to the municipality’s strategic objectives and is shaped by its values and priorities.

Asset management (AM) program: The set of policies, people, practices and processes that make up a municipality’s formal approach to asset management.

Asset management (AM) roadmap: A step-by-step plan outlining the actions, responsibilities, resources and time scales needed to implement and deliver asset management objectives.

Asset management (AM) strategy: A document that lays out the direction, framework and approach for implementing the community’s asset management policy.

Capital plan: A plan for facility and infrastructure investments, including cost and timing information on asset renewal, decommissioning, disposal and investments in new assets.

Critical assets: Assets that provide extremely important functions in service delivery, especially those for which there is no available redundancy or substitution. The consequences of failure of critical assets are serious.

Cross-functional team (asset management team): A team that works across departments or disciplines to ensure that decisions integrate all relevant perspectives and priorities.

Financial information: Information about the costs of acquiring, operating, maintaining and replacing the asset.

Levels of service: The parameters, or combination of parameters, that reflect the social, political, environmental and economic outcomes that the organization delivers. The parameters can include safety, customer satisfaction, quality, quantity, capacity, reliability, responsiveness, environmental acceptability, cost and availability. (Source: ISO 55000:2014)

Long-term financial plan: A plan that balances the required costs and funding sources to meet infrastructure and service needs, over a minimum of 10 years.

Risk: The product of the likelihood and consequence of an undesirable event or circumstance. Risk includes both asset risks (e.g. a pipe failing) and strategic risks (e.g. insufficient funds for renewal of critical assets).

This resource was developed by the Municipal Asset Management Program(MAMP)

MAMP was designed to help Canadian municipalities strengthen their infrastructure investment decisions based on reliable data and sound asset management practices. This eight-year, $110-million program was funded by the Government of Canada and delivered by the Federation of Canadian Municipalities. It was implemented in partnership with municipal, provincial and territorial associations and other key stakeholders.

Ensuring continuation of asset management once consultant services are complete

Tips to engage your municipal team to ensure post-project momentum

Guide

You’ve decided that you want to pursue an asset management project with the help of a consultant. Read this tip sheet if you want to:

Learn how to actively engage with the consultant to ensure that the outcomes meet your needs
Better understand how your asset management deliverable is being developed
Build knowledge and employee capacity internally while working with the consultant
Be ready to take the next steps in your asset management journey once the consultant’s work is complete

A common challenge: If employees are not engaged during the project planning stage and if they don’t work with the consultant during the project, you may find that the deliverables don’t dovetail with your municipality’s needs, or that you are not prepared to follow through with next steps.

Tips and strategies

To ensure that deliverables are truly useful and employees can take the next steps:

Involve employees in planning the project, work closely with the consultant throughout the project, and put a concrete plan in place for training, implementation and next steps.

Before the project begins:

Brief all relevant municipal parties on the project (e.g. council, employees from varying departments).
- Begin with a briefing on asset management, if necessary (see "Tools for introducing employees and council to asset management" below).
- In the consultant’s scope of work, require a presentation or workshop by the consultant to introduce employees (and possibly council) to the project. This can help to establish engagement, align expectations and ensure open communication.
Involve employees from the beginning (and throughout the project) to cultivate buy-in and ownership of the project.
- Get the team’s input on the Request for Proposals (RFP) so that they understand the work to be done, their role and its importance to the community.
- Acknowledge and communicate the level of effort that may be needed to provide the consultant with information required to complete the work.

"By including all departments in our asset management training, strategy development sessions, and council session, their key personnel are now on board with and fully engaged in our Asset Management Implementation Strategy."

– Municipality of the District of Bonnyville No. 87, AB (population 11,661)

Put a strategy and schedule in place for communicating progress with employees and council. This will assist in keeping the project on schedule, communicating success, and keeping the municipal team connected to progress.
Plan for implementation or follow-up.
- Build steps into the scope of the work that will help you prepare for next steps once the consultant service is complete.
- Include an evaluation and planning milestone at 80 percent project completion. At this time, consultants can work with key team members and advise on a plan for next steps.

Key

Anticipate what your needs will be once the project is complete—and plan for them. For example, include employee training in the project plan, either as part of the consultant’s scope of work or as a next step following the project.

Tools for introducing employees and council to asset management: Video and presentation

If your municipality is new to asset management, brief council and employees on its benefits so that they understand the value of the work you are about to undertake. This short video and customizable presentation can help.

During the project:

Make time for employees to be involved in the project. For example, end users can shadow the consultant or receive training from the consultants.
Keep relevant employees in the loop and involved in any processes that they will be expected to continue as part of their role.
- Consider offering short milestone presentations to the wider employee audience (and council if appropriate) as part of the project.
Offer internal training on any new tools, data or processes, if needed.

Key

Working with a consultant is also an opportunity to build your municipal team’s asset management knowledge and skills by engaging them in the process. The most effective strategy for success in knowledge transfer and effective implementation post-project is to have the consultant work alongside municipal employees.

"It was much better to train in a group and get others on [the] management team involved because in the past it was mostly just a financial role. [This] expands the knowledge of the management team and ensures that they are a part of managing their assets within their departments."

– Township of Havelock-Belmont-Methuen, ON (population 4,530)

As the project wraps up:

Ensure that any recommendations align with your municipality’s strategic objectives.
Complete a final review of the deliverables and compare them with the contract.
Have the end users participate in evaluating the quality of the work and identify any questions they may have.
Ensure that knowledge has been transferred, so that you can take the next steps within your organization, or have a plan in place for internal training.
Make sure you understand the actions needed to move forward and have a plan for next steps in place.

After project completion:

Communicate results and next steps to council and employees. If you hold a presentation (internally or externally), have employees lead the presentation. If appropriate, ask the consultant to present alongside you.
Plan and follow through with next steps and continue the work internally. Hold periodic team meetings to keep next steps on track.

Preparing the team with training: Municipality of Neebing, ON

The Municipality of Neebing, ON (population 2,055), hired an engineering consultant to train employees on how to complete condition assessments for municipal assets. This provided valuable in-house knowledge, so that the municipality would not have to hire someone every time it needed to update the data. The team can now better evaluate the condition of assets as they work through an area, rather than taking a large block of time to evaluate all the assets at once.

Explore our tips for working with a consultant

Click on each tip below to learn how to anticipate and avoid common challenges.

Owning the products developed with an asset management consultant

Tips to ensure you can edit, adapt and share the finished work

Scoping your asset management project

Tips to help you clearly define and communicate your objectives to consultants

Scoping your asset management project

Tips to help you clearly define and communicate your objectives to consultants

Guide

If your municipality is developing a Request for Proposals (RFP) for asset management services, read this tip sheet for information on:

How to narrow down the number of proposals you receive in response to a future RFP
Developing an RFP that will yield proposals that are easy to compare and evaluate
How to feel more confident about making key choices during the procurement process
Ensuring that the consultant you hire meets your needs and provides the services you are expecting

A common challenge: After issuing a Request for Proposals, municipalities may receive a wide range of responses with vastly different prices and offerings, making it difficult to select a consultant. Sometimes a municipality is well into a project with a consultant before realizing that the work is not what they were anticipating.

Tips and strategies

To clearly define and communicate your objectives and the scope of work:

Take a moment before you begin the procurement process to ensure that you know what you want and what you need. Then, write a well-thought-out RFP that clearly states your requirements.

Before starting the procurement process:

Clarify your objectives.
- Complete a needs assessment.
- Confirm your assumptions with decision-makers and team members.
- Understand and articulate how this work fits into your strategic objectives and plan, internal processes and organizational culture.
Identify the type of service you require. In asset management, consultants provide two main types of service:
- Completing a clearly defined task, such as a condition assessment of specific infrastructure
- Coaching you through a process, where your municipal team will do much of the work and learn from the process
Consider your available resources (municipal team, time and funds).
Consider the employee time required during the project.
- If your consultant is completing a task for you, you’ll need to identify someone to oversee the project, provide any needed information, and review the work.
- If your consultant is coaching you through a process, you’ll need team members who can undertake the work.
Consider whether your municipality has the capacity to utilize the resulting work effectively.
Establish your budget and time frame for the work.
- Know your budget before determining the scope of the work.
- Include a contingency fund for unexpected costs.
- Consider partnering with other municipalities or bundling similar work.
- Consider partnering with non-profit organizations who may complete some or all of the work.

"With regards to the building condition surveys, next time we would try to narrow the scope of work perhaps reducing the number of submissions and increasing the quality of work. Also would involve more departmental supervisors from the onset of the project."

– Town in Ontario (population 9,000)

The scope of work includes both the main project deliverables and your additional expectations. For example, you may want the consultant to prepare an asset management plan, but you may also want the process to help build internal capacity, change the way the asset register is structured, or facilitate an evidence-based conversation with council.

Define the scope of work to be done. Ask yourself the following questions:

What is the purpose of the project?
Which people and departments will be impacted?
Why is the work a priority?
Will this work impact our asset management plan (requiring an update) or our asset management policy?
What is our timeline for completion of the work and specific milestones?
Will employees need training in order to use the results of the consultant’s work? Depending on your budget, you may choose to include that training in the scope.
Do we want to include a meeting or presentation to the asset management steering committee, senior management team or council?
Will engaging neighbouring municipalities at any stage add value to the project?

Key

The more specific you are about everything you hope to achieve, the better chance you will have of a consultant’s proposal meeting your needs.

Still not sure how to define your objectives or scope of work or how to settle on a budget?

Reach out to neighbouring municipalities to learn about their experiences.
For tools and best practices, connect with associations, your local provincial/territorial municipal association (PTA), communities of practice and other orders of government for tools and best practices.
Use potential consultants as a sounding board to help you identify an achievable scope of work for your budget.
Set up the work to unfold in stages, and make objective-setting the first milestone. This can be a separate engagement or phase one of a multi-phase project.

While developing the Request for Proposals:

Clearly articulate all your expectations—both the deliverables and the other outcomes you hope to achieve. Be specific.
Decide whether you want to declare your available budget. You have two options:
- Declare your budget and compare proposals based on what is being offered for that budget.
- Avoid declaring your budget, but outline the scope of work in detail, and compare proposals based on price.
Where possible, use common “asset management” language. Tools like FCM’s Asset Management Readiness Scale can help.

"A municipality receives report submissions from multiple engineering firms over the years. The City has experienced situations where a consultant would like to develop a report in a template that is not consistent with previous reports received. We provide a detailed and standardized scope of work to ensure consistency of deliverables to achieve the project goal."

– City of Greater Sudbury, ON (population 164,926)

Key

Remember to build in flexibility as you plan this work! A well-defined scope at the onset will help avoid future surprises, and you can leave room to review and update the scope or deliverables as the project unfolds.

Maximizing the benefits of working with a consultant: City of Plessisville, QC (population 6,688)

The City of Plessisville, QC (population 6,688), hired a consultant to help it introduce new asset management software, to improve the quality of information used for decision-making. While the software is now functional and well-implemented, the project faced many issues during the early years of implementation. At first, the scope of the project and the complexity of the software were not appropriate for the city’s needs. The scope of the project was just too large—the city did not have the capacity to implement it correctly. In discussion with the consultant, Plessisville decided to simplify the software, which is greatly customizable. At the same time, the city reduced the scope of the project to implement it, at first, only in the most organized division (water management) as a pilot project. The city learned that it as easier to implement it in a division that was already practicing some kind of asset management, than in another division that was less organized. Furthermore, the city’s experience with the pilot helped it identify and correct any issues before implementing the software in other divisions.

Explore our tips for working with a consultant

Click on each tip below to learn how to anticipate and avoid common challenges.

Owning the products developed with an asset management consultant

Tips to ensure you can edit, adapt and share the finished work

Ensuring continuation of asset management once consultant services are complete

Tips to engage your municipal team to ensure post-project momentum

Guide: Questions to ask before your municipality considers asset management software

Guide

What is asset management software?

While there is no official definition of “asset management software,” this document refers to applications designed to help you collect, manage, store, visualise and/or analyze your asset-related data. Options range significantly in price and functionality from inexpensive applications like programmed excel spreadsheets, to more costly and integrated software suites that can incorporate any mix of inventory, financial, maintenance, and asset life-cycle functions.

Ask yourself...

1. Do we need it?
Asset management is a business practice, not a software solution. Many communities find that a spreadsheet is all they need to get started.

2. Are we ready for it?
Software is only useful when it is populated with good data and supports sound business practices. Before buying software, collect and organize your data and put your asset management processes in place. It is also critical to allocate budget for keeping data current and maintaining the software system.

Asset management software CAN...	Asset management software CANNOT...
Store data in a central place Process large amounts of information Help link data across functional groups (e.g. finance and public works) Incorporate geo-spatial data into your analysis Facilitate the modeling of different scenarios Help conduct standard asset management analysis of your data (e.g. risk, life-cycle costs) Flag events to support decision-making Present data in a way that supports decision-making Support corporate memory	Make decisions for you Define your asset management processes Collect data or keep your data up to date Ensure the quality of your data Develop an asset management plan Tell you what information is useful in your decision-making process Test the logic of your outcomes Innovate or improve your asset management practices Provide leadership on asset management in your organization

Asset management software CAN...

Asset management software CANNOT...

Store data in a central place
Process large amounts of information
Help link data across functional groups (e.g. finance and public works)
Incorporate geo-spatial data into your analysis
Facilitate the modeling of different scenarios
Help conduct standard asset management analysis of your data (e.g. risk, life-cycle costs)
Flag events to support decision-making
Present data in a way that supports decision-making
Support corporate memory

Make decisions for you
Define your asset management processes
Collect data or keep your data up to date
Ensure the quality of your data
Develop an asset management plan
Tell you what information is useful in your decision-making process
Test the logic of your outcomes
Innovate or improve your asset management practices
Provide leadership on asset management in your organization

Important tips

Make software a team decision
Asset management is cross-functional. The purchase of asset management software should include the same group of professionals from across your organization.
Know the outputs you want to get from your software
What analysis do you want the software to do? What business processes will it feed? How do you want the information to be displayed or reported?
- Hint: Try mapping your requirements using a spreadsheet first!
Training and implementation support are essential to success
Have a plan for training staff and a succession plan in case key staff leave. It takes time and energy to adopt a new software system – budget for training and implementation support for staff across your organization.

Questions to ask suppliers
How well does your solution align with my data and business processes? Is your solution compatible with my current information systems? Is the data structure open or proprietary? Can I add functionality later and how expensive might that be? What level of technical support is available and at what cost? How close is the nearest technical support? What training is included in the set up of the software? How much would each additional session cost? Will I own my data? Where is the data stored? What are the licensing and maintenance fees? Will I need to upgrade my hardware? What is your commitment to maintenance and updates? Have other municipalities used this solution and can I talk to them?

Questions to ask suppliers

How well does your solution align with my data and business processes?
Is your solution compatible with my current information systems?
Is the data structure open or proprietary?
Can I add functionality later and how expensive might that be?
What level of technical support is available and at what cost?
How close is the nearest technical support?
What training is included in the set up of the software? How much would each additional session cost?
Will I own my data?
Where is the data stored?
What are the licensing and maintenance fees?
Will I need to upgrade my hardware?
What is your commitment to maintenance and updates?
Have other municipalities used this solution and can I talk to them?

Download the guide.

This content was developed by the Technical Working Group of FCM's Municipal Asset Management Program. The Technical Working Group is comprised of an exceptional group of municipal practitioners and experts from across Canada.

Owning the products developed with an asset management consultant

Tips to ensure you can edit, adapt and share the finished work

Guide

Are you planning to work with a consultant on an asset management project? Read on if you:

Plan to share the knowledge or tools developed by your consultant
Would like to publish portions of the material created by the consultant—either on a website or in some other form
Expect to edit, update or modify any final products (such as plans, asset data or other materials) in the future

A common challenge: Did you know that hiring a consultant to develop a product does not necessarily grant you the ability to modify, update or share the material? The consultant may retain sole copyright on deliverables, unless you specify a different arrangement. And if you don’t identify the file format you want, you might end up with something that you can view but not edit.

Tips and strategies

If you would like to edit, adapt and share the finished work:

Include clear statements regarding copyright and file format in your Request for Proposals and in the contract, and double-check the final deliverables to confirm that they meet your requirements.

While developing the Request for Proposals (RFP):

Consult with employees to ensure that you understand which software and file formats they can work with.
If your project includes creating a resource or tool that involves software new to your team, consider adding an employee training component to the RFP.
Stipulate the file format(s) you require for the final deliverables.
State the type of copyright you will retain for all deliverables.

At the contracting stage:

Use your own contract template (if available).
Ensure that you retain the appropriate copyright to the deliverables. Include wording that says you have either copyright assignment or copyright license (see “A note on copyright” below). Consult your legal counsel for examples of specific wording you can use.
Specify your preferred software format for deliverables. Require all documents and data to be delivered in a format that you can edit (such as Microsoft Word or GIS-compatible files) if that is desirable, in addition to any non-editable versions you would like (such as PDF).
Include in the contract your right to approve the deliverables.

As the project wraps up:

Ensure that all the deliverables are complete, satisfactory and in the requested format(s).
Check for the appropriate copyright statements (as stipulated in the contract) in the deliverables.
Compare the results with the contract.

A note on copyright…

With copyright assignment, you become the owner of the material.
With a copyright license, you are not the owner but you have a license and the right to publish or sublicense the material.
Open-source content, software and tools are free for all to use, modify and share.

In some cases, copyright assignment (full ownership) is desirable, particularly for asset data that a consultant collects for your municipality; however, it can also make sense to share copyright with the consultant so that they can adapt the work for others. Consult with your legal counsel to ensure that you plan for all your needs. You should also check to see if there are specific requirements associated with any public funding you receive for the project.

Key

The freedom to share and publish knowledge and tools is key to building asset management communities of practice that benefit everyone. This is an important consideration for both municipalities and consultants when establishing copyright agreements.

The open-source approach: Village of Nakusp, BC

The Village of Nakusp, BC (population 1,605), had a limited budget for its project. The village found an asset management consultant that uses open-source software and tools. The open-source GIS software, called QGIS, is free to download and has no restrictions on the quantity of licenses issued. The spreadsheet-based asset management reporting tools used by the consultant were also open-source—built for the community, by the community. Any improvements are shared with all the municipalities that use the software. The use of open-source software and tools have allowed the village to grow its asset management initiative together with neighbouring municipalities.

Explore our tips for working with a consultant

Click on each tip below to learn how to anticipate and avoid common challenges.

Scoping your asset management project

Tips to help you clearly define and communicate your objectives to consultants

Ensuring continuation of asset management once consultant services are complete

Tips to engage your municipal team to ensure post-project momentum

Tips for working with an asset management consultant

How to avoid common challenges

Guide

So, you’ve decided to hire a consultant to help your municipality move forward on its asset management journey. How can you ensure a successful partnership?

Hiring a consultant to support your asset management process can be an important strategic decision and opportunity, but if you’ve never hired a consultant for this type of work it can be difficult to anticipate the possible challenges. One of the most powerful things you can do to ensure success is to be aware of common challenges before you develop your Request for Proposals—and put strategies in place to avoid those challenges.

We’ve identified three common challenges experienced by municipalities in their work with consultants, and some simple actions you can take to steer clear of these issues and enjoy a positive relationship with your consultant and get the outcomes you want.

Explore our tips for working with a consultant

Click on each tip below to learn how to anticipate and avoid common challenges.

Owning the products developed with an asset management consultant

Tips to ensure you can edit, adapt and share the finished work

Scoping your asset management project

Tips to help you clearly define and communicate your objectives to consultants

Ensuring continuation of asset management once consultant services are complete

Tips to engage your municipal team to ensure post-project momentum

Regional Energy Coaches

Regional Energy Coaches help affordable housing providers – including municipal, not-for-profit organizations and housing co-operatives – initiate and plan energy efficient retrofits and new builds.

Tool

Are you an affordable housing provider looking to retrofit existing units or construct energy-efficient new builds?

The Regional Energy Coaches (REC) program, is an innovative initiative dedicated to enhancing energy efficiency and sustainability in Canada's affordable housing sector. With funding from the Green Municipal Fund (GMF) and the Community Housing Transformation Centre (CHTC) Opens in a new tab., and delivered in partnership with the BC Non-Profit Housing Association, Manitoba Non-Profit Housing Association, Indigenous Clean Energy, Co-operative Housing Federation of Canada and the Clean Foundation, the REC program is at the forefront of promoting healthier, more sustainable living environments.

What we offer

Our REC program provides comprehensive support to affordable housing providers, including:

Tailored guidance: RECs offer specialized support, from conducting energy walkthrough assessments, support with funding applications, to technical assistance and support working with consultants
Strategic planning: RECs can help you identify retrofit opportunities, evaluate project feasibility, and understand the available technologies and funding mechanisms
Hands-on coaching: Our coaches work closely with you through one-on-one sessions, ensuring you have the knowledge and tools to succeed

REC program expansion

After a successful three-year pilot phase, we're adding more coaches and partners with expertise to support the unique needs of each region of Canada. With additional RECs, we are aiming to empower housing providers nationwide with the resources they need to implement sustainable energy solutions.

Get in touch with a REC in your region to get started on your energy efficient journey .

For more information about the REC program, visit our FAQ page.

How a REC can make your next project become a reality

Explore how the Valemount Senior Citizens Housing Society in British Columbia and the Otter Housing Association in Newfoundland and Labrador, with the support of a Regional Energy Coach, achieved sustainable, energy-efficient housing solutions. From feasibility studies to innovative construction methods, RECs provide the expertise and guidance needed to bring your energy-efficient housing projects to life.

…I value the work that we do together. The coach’s assistance and advice has been invaluable for moving our projects forward and making ours a better world in which to live through co-operation, advice, connections and extremely organized and timely assistance.”
– BC Housing Society

…thank you to the Centre for connecting CMHC, FCM, and our team together this morning to talk about how our organization continues to move towards expansion and/or renovation of our housing. Our team got so much out of that session and it could not have happened without your facilitation.”
– Housing Provider

Project cash flow calculator

Evaluate the economic feasibility of an energy efficiency project

Funders list for sustainable affordable housing

Learn about additional funding sources to support your next affordable housing project

Webinar recording: Transform your approach to energy efficiency with the Housing Providers’ Toolkit

Learn how this toolkit can help you optimize energy efficiency and make your affordable housing projects more viable and impactful.

Case study: New build achieves financial sustainability, social and environmental benefits

Affordable housing for seniors supports aging-in-place

SUSTAINABLE AFFORDABLE HOUSING

New construction of sustainable affordable housing Sustainable Affordable Housing

Ontario

Summary

Thanks to extensive consultations, astute financial management and the incorporation of energy-saving technologies, a 67-unit development in Ontario’s Niagara Region provides affordable housing for seniors, and delivers environmental and social benefits without an ongoing operating subsidy.

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Project

Birchwood Place

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Construction

2012–2014

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Owner & Developer

Niagara Regional Housing

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Cost

$9.9 million

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Builder

Brouwer Construction Ltd.

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Architect

Macdonald Zuberec Ensslen Architects Inc.

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Affordable Housing units

23 (rent-geared-to-income)
26 affordable (80% of the average rents as published in CMHC’s annual market survey)
18 (low end of local market rates)

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Funders

Province of Ontario (Municipal Affairs and Housing’s Delivering Opportunities to Ontario Renters program)
Canada Mortgage and Housing Corporation (CMHC)
Federation of Canadian Municipalities (FCM)

Context

Ontario’s Niagara region, like many regions across Canada, faces a longstanding and chronic shortage of affordable housing, particularly for seniors. Niagara Regional Housing (NRH) is responsible for community housing in the area. Governed by a Board of Directors comprised of Niagara Regional Councillors and community members, NRH provides a spectrum of low-income housing options through a combination of legislated programs and services. NRH’s current wait times for affordable housing range from 3 to 18 years, depending on the applicant’s location and requirements.

To ease the chronic shortage, NRH partnered with several funders to design and construct a financially sustainable 67-unit low-rise building. Rental rates range from rent-geared-to-income (RGI) to affordable (80% of the average rents as published in CMHC’s annual market survey) to the low end of local market rates. The project, located in Welland, also delivers a wealth of environmental and social benefits, and funds a 50-year capital reserve for the replacement of key systems and infrastructure.

Approach

NRH chose to locate the project adjacent to one of its existing buildings and to consult extensively with the 29 seniors who reside there. NRH also hosted sessions at Welland City Hall to consult with the general public, promote the project and offer assistance to interested applicants. Input from existing tenants informed several design choices, such as layouts and the inclusion of one-piece shower units (instead of bathtubs with showers).Other principles that guided the project include: universal accessibility; aging-in-place wellness model; incorporating a mix of geared-to-income and market rents; and exceeding current building-code requirements for energy by at least 40%. To ensure ongoing financial self-sufficiency, the project’s operating budget funds the replacement of all building components over their lifecycle.

“Birchwood Place demonstrates that a new community housing project can be financially self-sufficient while minimizing environmental impacts and fostering a good quality of life for residents.”
– Donna Woiceshyn, CEO, Niagara Regional Housing

Transcript

Environmental Measures

Geothermal system circulates water through underground loops and into each unit for heating and cooling. Should the system prove inadequate, tenants can activate electric heaters from the temperature controller installed in each unit.
Regenerative-drive elevators require less energy to operate and generate less heat. When descending, the elevator’s braking mechanism powers a turbine that generates electricity to be fed back into the grid.
Tenants collect organic waste and deposit it in bins that maintenance staff put out for curbside collection
Rainwater collected and used for site irrigation, reducing consumption of treated water
Low-flow water fixtures reduce consumption of treated water
Charging station for electric vehicles encourages their use
Green living wall in lobby improves quality of indoor air
Smoke-free building

Birchwood Place

Fully occupied since its completion in 2014, the project earned the Region of Niagara its first LEED® Silver certification for a social housing building. The project also incorporates common areas and outdoor spaces to promote socialization and well-being. The site is adjacent to public transit and has limited parking spaces for vehicles. “The tenants love the building and are proud of the sense of community it helps to create,” says Donna Woiceshyn, CEO, Niagara Regional Housing. “They run activities such as bingo and celebrations, and decorate the common room for various holidays.”

Lessons Learned

Self-subsidization works.
Of the 67 units, 23 (34%) are rent-geared-to-income, 26 (39%) are affordable (at 80% of CMHC market rates). The market rents charged for other units, along with relatively low mortgage rates and the initial support of funders, enable the project to operate without ongoing operating subsidy.

New technologies can be more challenging and costlier to maintain than current ones.
NRH found it difficult to obtain the mechanical expertise locally needed to maintain the project’s geothermal system and regenerative-drive elevators, due to the newness of the technologies. The contractor who installed the geothermal system maintained it for the first year; NRH then found a company from nearby St. Catharines that trains its own technicians to perform ongoing maintenance work. Expertise is likely more available in larger cities and for technologies that are more established. NRH advises those considering similar projects to require that installers of key building components provide maintenance manuals and onsite staff training, and that the training be videotaped and shared with future staff.

Investments in geothermal heating and cooling systems may not generate positive returns.
The geothermal systems at Birchwood Place deliver valuable environmental benefits, including reduced greenhouse gas emissions. However, the installation and maintenance costs have negated the savings in avoided energy costs at current rates. NRH originally anticipated that these savings would cover the cost of the geothermal system within 25 years. It currently estimates that the system will at best break even over its lifecycle, as higher-than-anticipated maintenance costs reduce return on investment.

Regenerative-drive elevators can be more expensive to install and maintain than traditional models.
Higher-than-anticipated maintenance costs for the regenerative-drive elevators also reduce return on investment. NRH’s experience with the elevators and geothermal system suggests that housing providers should study in detail any new technology’s costs and benefits, paying attention to the availability of local expertise and evaluating operational costs, before deciding to use the technology.

Educate tenants about proper operation of energy-efficient equipment.
Each apartment connects to the geothermal network and has a temperature controller. Should the network fail, the tenant can use the temperature controller to activate the electric-heat backup system. Initially, some tenants activated the back-up system unnecessarily, incurring additional utility costs. Part of the problem is that the controllers are relatively complex to operate. While the tenant handbook describes how to operate the controllers properly, some tenants required additional guidance. Maintenance staff now work with each new tenant to set a heating and cooling schedule that meets their needs.

Use LEED-like principles rather than pay for certification process.
The LEED® certification process required additional costs, but provided no additional value or benefits to tenants. NRH recommends that project leads consider LEED standards instead of LEED certification.

Contact

Donna Woiceshyn

Donna Woiceshyn
CEO, Niagara Regional Housing
905-682-9201
donna.woiceshyn@niagararegion.ca

Want to explore all GMF-funded projects? Check out the Projects Database for a complete overview of funded projects and get inspired by municipalities of all sizes, across Canada. 

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Webinar recording: Making affordable housing sustainable

SUSTAINABLE AFFORDABLE HOUSING

Retrofit of sustainable afforable housing Webinar recording

If you’re a municipal, non-profit or co-operative housing provider, our $300 million Sustainable Affordable Housing (SAH) initiative is for you. Whether you want to complete an energy efficient retrofit or engage in a new capital project, SAH funding can help you increase the quality, affordability and energy efficiency of your buildings.

Watch this webinar recording to learn about the various forms of grant, loan and capacity building support we offer to help you retrofit existing units or build new ones. It includes a discussion on the many ways we can help during any stage of your project.

Speakers

Benjamin Koczwarski, Outreach Advisor, FCM Programs
Jen Arntfield, Lead, Sustainable Affordable Housing, Green Municipal Fund

Interested in more SAH resources? These factsheets will help you get started.

This webinar was recorded June, 2020 as part of GMF’s Webby Week.

Factsheets: Municipal Energy Roadmap

Targeted solutions and strategies to achieve your sustainability goals

Tool

GMF’s Municipal Energy Roadmap gives elected officials and municipal staff a framework to identify and design innovative sustainable energy projects. The support tool helps you identify the best solutions for Canadian communities to achieve significant GHG emissions reductions and meet your long-term sustainability objectives.

These fifteen factsheets offer specific guidance around building-level solutions, community-level solutions, and long-term strategies to achieve your goals. Whether you want to discover financing options to adopt sustainable energy technologies or implement specific solutions like low-carbon water heating, these resources provide targeted insights to help you drill down and meet your objectives.

Strategy: Local development policies and bylaws

Although Canadian municipalities generally do not have the legal authority to adopt their own building or energy code, they can create local development policies and bylaws to set building requirements that exceed or complement the provincial code. Find out more.

Strategy: Financing options

Discover how municipalities can use innovative financing options to target clean energy and energy-efficiency improvements in local homes and businesses, municipal buildings, and community-scale initiatives.

Strategy: Home/building energy rating and disclosure

Read about how municipalities can use home and building energy rating and disclosure (HERD/BERD) policies and programs as strategies for transforming the market over the long term.

Strategy: Incentive programs

Learn how incentive programs offer support to reduce participants’ costs and improve the business case for energy-efficiency and clean energy measures, thus removing barriers and increasing uptake of those technologies.

Strategy: Lead by example

Municipalities can lead by implementing policies and demonstrating the practices they want to encourage within the community to reduce greenhouse gas (GHG) emissions and drive top-level energy performance in municipal buildings and facilities. Find out how.

Community-level solution: District energy systems

District energy systems, also referred to as thermal grids, supply heating and, in some cases, cooling, to multiple buildings. Learn how municipalities can play a critical role in influencing the speed and success of district energy development within their communities.

Community-level solution: Wind and solar energy generation

Discover the advantages of community-level wind and solar energy generation: local economic development, community resiliency, reduced GHGs, and energy dollars staying in the community.

Building-level solution: High-efficiency indoor ice rinks

Indoor ice rinks use large amounts of energy for heating, refrigeration, lighting, pumping and hot water. Capital and operational measures can improve the energy efficiency of these processes.

Building-level solution: Building envelope upgrades

Building envelope upgrades improve the building shell so that it better controls the flow of heat, air and moisture in and out of the building. Find out how to leverage these upgrades for energy efficiency and reduced GHGs.

Building-level solution: Heat pumps replacing electric resistance

Heat pumps provide efficient heating by drawing heat from outside air, the ground or a water body, and transferring that heat into a building. Learn more about the use of electric-powered heat pumps in place of electric resistance heating like baseboards, electric furnaces and electric boilers.

Building-level solution: Heat pumps replacing gas or oil

Building-level solution: Improved HVAC controls

Heating, ventilation and air conditioning account for a large proportion of a building’s energy use. Controlling them with intelligent technology can deliver substantial energy savings and GHG reductions while also improving thermal comfort and reducing maintenance requirements. Learn how.

Building-level solution: High-efficiency lighting and reduced plug loads

Discover how energy consumption from lighting can be reduced by switching to energy-efficient light bulbs, improving lighting controls, and using natural light as a source of illumination.

Building-level solution: Rooftop solar PV

Solar PV systems are primarily used to reduce utility bills by offsetting the building’s own electricity consumption. Learn how these systems can also be paired with battery storage to provide a number of additional benefits.

Building-level solution: Low-carbon water heating

Greenhouse gas emissions from water heating can be reduced by improving the efficiency of water heating or by switching to a lower-carbon energy source. Read about three technologies in the residential sector with the greatest potential for GHG reductions.

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