Subsidy & Rebate Programs

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Co-op Subsidy Program



About the Subsidy Program…

In 2011, The Renovation Co-op launched a unique Subsidy Program, establishing a special fund supported by a percentage of monthly membership & administration fees, along with additional contributions from various segments of construction and financial service industries throughout Ontario.

The Subsidy Program is managed and administered by The Canadian Renovation Funding Program. see Funding Program

To ensure the full use of available funds each month,  each approval is subject to a 5-day withdrawal period pending the client’s deposit or signed agreement with the member-contractor.

How the program works…

Each month, those monies that have been categorized as Subsidy and Rebate Funds are set aside and applied towards the price of selected projects performed by the Co-op’s member-contractors.

The approved amount granted for each subsidy request is carefully determined, using a series of protocols related to the project, such as the type and scope of the work, the competitive nature of the type of job, geography, etc.

Funding managers maintain a vigilant watch on the availability of these funds throughout the month, in order to accommodate funding requests in a fair and balanced manner.

The member-contractor signs the contract with the homeowner for the final discounted price and is then reimbursed, or subsidized directly from the fund.

The Subsidy Program supports our member-contractors by providing them with the ability to lower the price of the contract using 3rd-party funds, without having to use his or her own money, which almost always lessens the quality of service and/or materials.

In the following example, the lowest bid price, or Best Co-op Price is $26,500. The Subsidy amount made available for this specific project is $1,750. (For details regarding the Best Co-op Price, view The Renovation Co-op’s Estimating Procedures).

The final, discounted price agreed to in the example above is $24,750.

However, the contractor is later reimbursed (or subsidized) for the $1,750 by the Subsidy Program.

Subsidy Withdrawal Policy:

Upon completion of the Estimate Review conducted by a Co-op Client Service Rep, any subsidy funds that are offered as part of your estimate will be removed 5 Business Days following the review date (see  Standard Estimating Procedures)

Reason: When a member-contractor signs the final agreement with the client, the final price is reduced by the Subsidy amount.(As displayed in the sample)

The approved Subsidy amount is segregated and placed on “hold” for the 5 business days, pending a deposit or contract signature.

By setting a reasonable, mandatory subsidy withdrawal date, and with no deposit or contract signed by then, the funds are then “freed up” and placed back into the main Subsidy Fund, so that they can be used towards another project.

Supporting our Member-Services…

The Co-op’s subsidies & rebates enable our members to offer substantially discounted pricing to clients, without having to lower their own fees.

By having all discounts paid for by the Co-op’s Subsidy & Rebate Programs, our member-contractors and architectural specialists are able to maintain their same high standards of service and materials, without having to “cut corners”.

All subsidies and available rebates are automatically applied for on behalf of the project, following the completion of the bidding process. see The Co-op’s Estimating Procedures.

Regardless of the size and/or scope of the project, The Co-op’s Subsidy & Rebate programs increase the client’s ability to pay for renovations and/or architectural services, while still maintaining a high level of professional service.

The Canadian Renovation Funding Program

In 2008, The Canadian Renovation Funding Program was established to supervise The Renovation Co-op’s complex system of Subsidies, Rebates and Loan Programs.

The program consists of a professional team of retired and semi-retired financial specialists, each having served in various areas of the Financial Services Industry, including Residential/Commercial Mortgage Financing, Investment Banking, Private Lending and Fiduciary Management.

The Funding Program has two major functions:

Subsidy Fund Management:

* Provides the approval, development, management and administration of all Subsidy and Rebate Programs on behalf of  The Renovation Co-op, including all Renovation Credit Accounts. (See Subsidy & Rebate Programs)

Free Loan Advisory Service:

* Provides each client with a personalized recommendation to a specific, Co-op-Approved Mortgage Broker (when requested by the client only).

* Provides current information regarding Affordable Housing Developmental Loan Programs offered by Federal, Provincial and/or local City Governments).

The Renovation Funding Program maintains a watchful eye over the availability of all subsidy and rebate funds, ensuring a fair balance of cash distribution for all projects throughout the month. The amount of funds for each individual project is approved on a discretionary basis, and is determined by the program’s Fund Managers on a daily basis.

Note: None of the Renovation Co-op’s incentive programs have been put in place for the purpose of becoming built-in, “hidden costs” to the client. In fact, the existence of these programs is one of the primary reasons why The Renovation Co-op is able to attract more “seasoned” and professional service providers from within the construction industry.

All subsidy and other incentive funds are collected from outside sources, including a percentage of monthly membership fees, along with contributions from within the construction sector and other related industries.

Renovation Credit Accounts



The Renovation Credit System:

When a client first contacts The Renovation Co-op,  a Renovation Credit Account is established for the client with a “$0-Balance”.

Rebates & Credit Programs: Whenever the client makes a purchases though a Co-op Partner-Service (other than renovations or architectural services), a Credit is added to the client’s Renovation Credit Account.

Sample Renovation Credit Account:

The standard, allowable amount of credit to be used is 2% of the Final Contract Price. (see Estimating Procedures)

However, each category of Renovations (eg. Basements, Kitchens, Bathrooms,etc.) is given its own “allowable percentage” to be used by the client’s Renovation Credit. For example, during any given month, The Renovation Co-op may announce that the “Allowable Percentage” for all Basement Finishing Projects will be 3%. This means that the client can use his or her Renovation Credit (if enough credit exists within the client’s account at the time) to deduct 3% from the Final Contract Price.

For example, if the client purchases a mortgage through a Co-op-Approved Mortgage Broker, a credit of $10,000 is added to the client’s account.

If the client buys or sells his/her home through a Co-op-Approved Realtor, a similar credit of $10,000 is added to the account.

Portions of the client’s Renovation Credit can be applied toward the price of a renovation or architectural contract (when performed by a Co-op member-contractor). Amounts drawn from Renovation Credit Accounts are based on a specified percentage of the final contract price.

The standard, allowable amount of credit to be used is 2% of the Final Contract Price. (see Estimating Procedures)

However, each category of Renovations (eg. Basements, Kitchens, Bathrooms,etc.) is given its own “allowable percentage” to be used by the client’s Renovation Credit.

For example, during any given month, The Renovation Co-op may announce that the “Allowable Percentage” for all Basement Finishing Projects will be 3%. This means that the client can use his or her Renovation Credit (if enough credit exists within the client’s account at the time) to deduct 3% from the Final Contract Price.

Sample of Estimate with Renovation Credit applied:

Note: Renovation Credit Account balances are completely transferable. To help you sell your existing home, we will issue a Certificate of Transfer to your buyer, who will then be able to utilize whatever leftover credit there is in your account and apply the balance towards future renovations.

Or, you can carry your balance with you and apply the funds toward future renovations to your next home. And if you once again purchase your new home or financing it through a participating mortgage broker and/or realtor, your Renovation Credit Account balance will be credited accordingly.

Special Rebate Programs



There are currently 3 major Rebate Programs available:

Architectural Rebate Program

When you purchase your drawings and permit processing through a Renovation Co-op Member-Specialist, you own and control your own set of drawings, without any obligation to purchase the actual renovations through The Renovation Co-op.

All architectural drawings are sold separately…and not blended into the contractor’s total price.

However, as an incentive to purchase your renovations through a Co-op member-contractor, the Co-op provides an Architectural Rebate of up to $1,500, which gets credited towards the contract price.

Sample Estimate with Subsidy and Architectural Rebate:

Note: Unlike approved Subsidy funds, there is no time limit or withdrawal period for using the Architectural Rebate. However, the renovation work eventually performed by a member-contractor must correspond with the architectural drawings you have purchased.


Mortgage Rebate Program

When you purchase a loan product through a Co-op-approved Mortgage Broker, a $10,000 Credit will be added to your Renovation Credit Account (see Renovation Credit Account information above

As mentioned, portions of your Renovation Credit can be applied to the final price of renovation projects that are performed by a Co-op member-contractor. See Sample Estimate


The National Realtor Program

When you purchase or sell your home through a participating realtor, you will also receive a $10,000 credit toward your Renovation Credit Account balance.