15. (1) The following are prescribed as rules for making findings relating to capital expenditures and for calculating allowances for capital expenditures: 1. There shall be no allowance for a capital expenditure, except under section 16 of the Act, unless, i. the work was completed during the one-year period ending ninety days before the effective date of the first rent increase applied for, or ii. the application is made within six months after the 10th day of August, 1992. 2. The amount of a capital expenditure is the total of the purchase price and the installation, renovation and construction costs less any grant or other assistance from the federal, provincial or a municipal government or insurance, salvage, resale or trade-in proceeds. 3. The amount of a capital expenditure that relates to a leased asset is the lesser of, i. the net present value, at the commencement of the lease, of the minimum lease payments including any initial payments or options to purchase but not including the cost of any maintenance contract, and ii. the fair market value of the leased asset at the commencement of the lease. 4. For the purposes of subparagraph i of paragraph 3, the net present value shall be determined using the interest rate, prescribed under section 18, for the month in which the lease commences. 5. The value of the landlord’s own labour in carrying out the work involved in the capital expenditure is equal to the amount of time spent multiplied by a rate of pay that is reasonable given the landlord’s experience and skill in the type of work done. If the amount of time spent exceeds the amount of time that would be reasonable given the landlord’s experience and skill, the latter amount of time shall be used in the calculation of the value of the landlord’s own labour. Only that part of the value of the landlord’s own labour that is less than the amount a person in the business of doing such work would charge shall be considered. 6. The allowance for a capital expenditure is the sum of the amount of the capital expenditure plus the value of the landlord’s own labour, amortized over the useful life of the work done or the thing purchased, prescribed under section 17, in equal instalments of blended principal and interest. 7. The amortization under paragraph 6 shall be done using the interest rate, prescribed under section 18, for the month in which the application is made. 8. The date on which a capital component is to be deducted from the maximum rent for a unit shall be the date that follows the effective date of the maximum rent set out in the order that determined the allowance of which the capital component is part by the length of time of the anticipated useful life of the work done or thing purchased prescribed under section 17. 9. Without limiting what other capital expenditures may be capital expenditures that increase energy conservation, a capital expenditure is a capital expenditure that increases energy conservation if any of the following apply, i. any financial assistance, the purpose of which is to increase energy conservation, is received from the federal, provincial or a municipal government, an agency of any of them or a supplier of energy or fuel, ii. the expenditure is for anything recommended in writing, for the purpose of increasing energy conservation, by the federal, provincial or a municipal government, an agency of any of them, Ontario Hydro, a public utility commission or any person who supplies gas or electric power to a municipal corporation or the inhabitants of any municipality, in accordance with the Municipal Franchises Act, iii. the expenditure is to do any of the following, A. change anything powered by electricity to something powered by another form of energy or fuel, B. change incandescent lighting to florescent or halogen lighting, C. change exterior lighting to high pressure sodium lighting, D. replace windows with windows that are more energy efficient, E. weatherseal a building, F. increase the insulation value of the shell of a building, G. increase the energy efficiency of a heating, cooling or ventilation system. (2) The following rules apply to the allocation of a capital expenditure for a residential complex that is part of a larger project if expenditure relates to other parts of the project: 1. The capital expenditure for the project shall, subject to paragraph 2, be allocated among the parts of the project in accordance with one or more of the following factors, i. the area of each part of the project, ii. the assessment for municipal taxes for each part of the project, iii. the market value of each part of the project, iv. the revenue generated by each part of the project. 2. If the allocation of the capital expenditure in accordance with paragraph 1 would be unreasonable considering how much of the expenditure is attributable to each part of the project, the expenditure shall be allocated among the parts of the project in reasonable proportions according to how much of the expenditure is attributable to each part of the project. O. Reg. 375/92, s. 15.