FAQ

  1. Is there any risk? Yes, any investment has an element of risk.
  2. What are the risks? The main risk with any business is that it will not perform as well financially as is hoped. The way the risk is being addressed is:
    • through sound business planning
    • through guaranteed, government-backed, 20-year contracts
    • through manufacturers' output warranties
    • through long term management and maintenance contracts
    • through diversification of businesses
    • through inclusion of housing developments in mix of businesses as we know these will provide a high rate of return
  3. What about the inflation risk? We will obtain long term financing to offset this risk.
  4. What happens to any Operating Surplus? The operating surplus generated by each co-operative (net of reasonable administrative costs) will be transferred to the Community Wealth Non-Profit to be used for funding new developments with a sufficient amount set aside to support the guarantees on existing co-operatives.
  5. What if I need to get my money out before 20 years is up? Any time after 5 years, you can request to be replaced as a member. Once a replacement member is found, withdrawal is subject to a payment equivalent to 2% of the capital being withdrawn.
  6. What if I don't want to join the first co-operative that is offered to me? You will be allowed to remain on the list with an additional payment of 1% of your stated loan commitment/bond purchase. Each time you turn down the offer to join a co-operative, a further 1% deposit will be required.
  7. What if I vote against the co-operative business plan and it still gets the 66% needed to go ahead? You are still obligated to provide the funds that were promised subject to answer 6.
  8. What's the most money I can put into this? There is no limit but bear in mind that each member is limited to a single vote, regardless of how much money they have committed. Commitments to date have ranged from $5,000 to $200,000.
  9. When will my payments start? Payments start when the full amount of the loan has been drawn from the members' bank account. This may happen at different times for different members depending on the needs of the development - the progress of construction etc.
  10. How will you choose where you are going to make the investments? We will choose the location and partner that has the best business case. This will be outlined in the business plan.
  11. How will you know that the investments will generate enough surplus? See 2.
  12. How does one become a member of the Board of the co-operative? Through the usual process of nomination and voting as will be outlined in the Articles of Incorporation.
  13. How much of a total commitment do we need before the Hall's Pond development can proceed? We need $7 to $8 million in pledges.
  14. How much of a total commitment do we need before the Ignatius development can proceed? We need approximately $300,000 in pledges allocated specifically to Ignatius.
  15. If a couple sign up, how many votes do they get in the co-op? They would need to sign up separately to get two votes, or as a couple for a single vote.
  16. Can the loan/bond be willed (or transferred) to a friend or family member? Yes, it can be willed or transferred.
  17. Is there still the 2% fee to transfer to friend or family? Yes.
  18. Can non-Canadian citizens participate? Yes. As long as you are a resident of Ontario.
  19. Are partial withdrawals after 5 years allowed? What fees are involved? Yes but the 2% fee applies and withdrawals must be in increments of $5,000 and are subject to the availability of a replacement member.
  20. Have the projects received all permits and guarantees for connecting to the grid? Grid connection isn't guaranteed until after a Connection Impact Assessment (CIA) is completed. A CIA can only be done once a FIT contract has been awarded. Both Hall's Pond and Guelph Solar have applied for but not yet received a FIT contract.
  21. How do I set up a self-directed RRSP for the community bond? Options staff will assist you with this process when the time comes. We expect to set this up through Meridian Credit Union.
  22. What is the time line for completion and what are the possible delays? Once a FIT contract is obtained (which can take up to 12 months from application submission), the Ignatius rooftop project should be up and running within a year. The Hall's Pond development has to go through an extensive Renewable Energy Approval (REA) process which could take up to 18 months followed by construction itself. It could take 2 to 3 years to completion for Hall's Pond.
  23. Is my return taxable? The returns on a loan made to one of the co-operatives are taxable. The Community Bonds will be held within an RRSP and, as such, they are not subject to tax until they are withdrawn.