SOFIAC is supporting its first project for a long-term care provider in Atlantic Canada, investing $5.4 million into elevating the energy efficiency of 18 seniors’ residences while cutting greenhouse gas emissions and costs.

Montreal-based decarbonization investment fund SOFIAC is partnering with non-profit Atlantic Baptist Housing to upgrade its buildings in New Brunswick, Nova Scotia and Prince Edward Island. The residences contain over 1,000 units spread across more than 800,000 square feet.

The changes include installing heat pumps and solar panels, switching to LED lighting, and modernizing the HVAC systems. After the upgrades, the energy use of the residences are projected to be reduced by 33 per cent and the greenhouse gas emissions shrunk by 36 per cent, SOFIAC said in a release.

The initiative is also expected to generate over $500,000 in annual energy savings and improve comfort and quality of life for the residents.

“Embracing the SOFIAC model is about much more than financing infrastructure improvements — it is about creating healthier, safer, more sustainable environments where seniors can thrive,” Victor Shea, CEO of Moncton, N.B.-based Atlantic Baptist Housing, said.

Balancing sustainability, livability

Stuart Galloway, senior vice-president of investments at SOFIAC, said in in an email exchange with Sustainable Biz Canada that SOFIAC’s investment consists of paying its technical partner for the design and installation work and releasing funds to help Atlantic Baptist Housing appoint an advisor.

By the end of the installations, SOFIAC will hand over ownership of the upgrades to Atlantic Baptist Housing. During the 15-year operation of the systems, an independent third-party will be appointed to oversee the savings; Atlantic Baptist Housing is to pay back SOFIAC a portion of the monthly savings.

“Any shortfall in payment at the end of the 15-year term is SOFIAC’s risk,” Galloway said.

The investment's structure means the clients’ debt service cover ratio remains intact, he said, meaning “they don't have to worry about opportunity coat of capital.”

SOFIAC partnered with Atlantic Baptist Housing to structure and optimize the project, such as identifying and maximizing available incentive and grant options.

The project kicked off in June and is expected to take 12 to 15 months to finish.

Preserving comfort for residents

The upgrades are expected to result in more comfortable, healthy and enjoyable living environments, Galloway said, while reducing energy use and carbon emissions.

While there will be some disruption to the residents, both parties aim to minimize the impact, he said. SOFIAC and Atlantic Baptist Housing plan to work with the program providers to accommodate changes in the schedule of the project and how work is conducted, with a stakeholder consultation and information process at each facility, depending upon the level of intrusive work.

“The aim is to improve overall resident comfort and stability,” Galloway said, “not just change plant room boilers with like-for-like equipment.”

The investment “helps pave the way for long-term care providers across Atlantic Canada and other provinces looking to modernize their facilities and invest in a better future for the people they serve," he said.

The implementation of the upgrades is being led by Johnson Controls, SOFIAC’s technical partner, with Haven Consultants International serving as the technical advisor.

About Atlantic Baptist Housing, SOFIAC

Founded in 1970 and operating in Atlantic Canada, Atlantic Baptist Housing provides services such as seniors’ housing, long-term care homes and aging-in-place programs.

SOFIAC invests in the decarbonization of buildings across Canada without demanding upfront investment from its clients, generating returns from sources such as the savings from improved energy efficiency.

Its projects include addressing two Quebec facilities owned by Lactalis Canada for $10 million, and eight INNhotels properties in Alberta and British Columbia for $5.9 million.

The long-term care market is “much under-served and under-invested,” Galloway said. In response, SOFIAC is engaging with health care providers to examine how it can scale its investments in Atlantic provinces.

“This has naturally now bled to some national providers that provide similar services across multiple provinces,” he said.

Due to the number of long-term care providers that only manage one to two properties, SOFIAC is working with several regional and one national long-term care organizations to understand how it can aggregate the smaller providers to benefit from economy of scale.