Item - 2025.IE25.3

The Infrastructure and Environment Committee recommends that:

1. Subject to the final Toronto Water 2026 Budget, City Council amend the Basement Flooding Protection Subsidy Program, effective May 1, 2026, such that:

a. The maximum amounts for back water valve and sump pump subsidies under the Basement Flooding Protection Subsidy Program be increased by 28 percent to reflect inflationary increases in equipment and installation costs since 2013.

b. A new subsidy for home plumbing assessment be established to provide up to $500 per property to eligible property owners for professional assessments conducted by a licensed plumber to identify basement flooding risks and mitigation opportunities. 

c. The backwater valve subsidy be modified to include eligibility for the installation of a second backwater valve per household.

d. A new subsidy be established to provide up to $300 per household for the installation of a battery backup system for pump sumps.

e. The maximum total, per property, subsidy available under the Basement Flooding Protection Subsidy Program be increased to $6,650.

f. The eligibility period for submitting applications be extended from one year to two years following completion of the installation of eligible basement flooding protection measures, to provide homeowners with additional time to meet program requirements and submit necessary documentation.

2. City Council direct the General Manager, Toronto Water, to continue to monitor the implementation of the Basement Flooding Protection Subsidy Program, and authorize the General Manager, Toronto Water, to revise or amend the type of basement flooding protection work (“Eligible Works”) qualifying for a subsidy and the subsidy limits applicable to such work, subject to the total subsidy limit of $12,000 per property, and to otherwise administer the Program, as the General Manager, Toronto Water may deem necessary, to improve the effectiveness of the Program.

The Basement Flooding Protection Subsidy Program is one of the City of Toronto’s key stormwater management programs to reduce basement flooding risks on private property. The Basement Flooding Protection Subsidy Program provides subsidies to eligible residential property owners to install flood protection measures that help isolate the home from the City's sewer system and reduce basement flooding risks on their properties from severe storms.

In July and August 2024, heavy rainfall events caused basement flooding in more than one thousand properties in Toronto. In response, City Council directed staff to review City programs, including the Basement Flooding Protection Subsidy Program, and undertake public consultation on potential new incentives to reduce stormwater runoff and basement flooding risks on private property.

Following public consultations held in fall 2024 and a report back to Council in February 2025, City Council adopted Item EX20.12 – Reducing Stormwater Runoff and Mitigating Basement Flooding, which included seven recommendations.

This report responds to Recommendation 1 of EX20.12, requesting the General Manager, Toronto Water, to report to the Infrastructure and Environment Committee on a plan to implement three new and expanded subsidies under the City’s Basement Flooding Protection Subsidy Program. A separate but related report from the Executive Director, Environment, Climate and Forestry, responds to Recommendation 2 of EX20.12, and was brought before the Committee on September 26, 2025. Recommendation 6 of IE20.7 outlined proposed implementation frameworks and resource requirements to develop and operate two new incentive pilot programs to collect and manage stormwater on private property in Toronto.

Based on Council's direction and consultation feedback, this report recommends the following Basement Flooding Protection Subsidy Program enhancements:

- Increasing the backwater valve and sump pump subsidy amounts to counter rising costs of basement flooding protection work;

- Establishing a new subsidy for a home plumbing assessment;

- Increasing the existing backwater valve subsidy to support the installation of up to two devices per property and allowing returning applicants to apply for a second backwater valve subsidy;

- Expanding the sump pump subsidy to include backup power, with a separate subsidy available for previously approved applicants to retrofit existing systems; and

- Extending the application eligibility period from one year to two years following completion of eligible work, providing homeowners with additional time to meet program requirements and submit documentation.

The recommended enhancements are intended to increase participation in the Basement Flooding Protection Subsidy Program and improve the effectiveness of the Basement Flooding Protection Subsidy Program in reducing basement flooding risks on private property. These enhancements will reduce barriers to participation in the Basement Flooding Protection Subsidy Program (e.g., costs for flood protection equipment and installation) and provide homeowners with additional information and guidance to support informed decisions about which Basement Flooding Protection Subsidy Program subsidies are most appropriate for their property.

Pending Council approval, staff would implement the Basement Flooding Protection Subsidy Program enhancements as part of the 2026 Toronto Water Budget in order to become effective on May 1, 2026.  Implementation would include developing and revising program processes and procedures, updating online applications and IT systems, conducting staff training, and developing communications and outreach materials to advise the public about the new and enhanced subsidies.