AGI for capital expenditure — what gets approved and what doesn't in 2026?

AGI approval has gotten harder. The LTB now scrutinizes three things:

1. **Useful life and necessity.** The work must be reasonably required AND not the result of inadequate maintenance. Replacing a roof at end-of-life: approved. Replacing it because you didn't maintain it: denied.
2. **Itemized invoices.** Lump-sum contractor bills get rejected. You need line-item invoices showing labor and materials separately.
3. **No double-recovery.** Work that was already covered by an insurance claim, warranty, or government grant cannot be counted in the AGI calculation.

What typically gets approved:
- Structural work (roof, foundation, exterior walls)
- Elevator overhauls
- Major mechanical (boiler, central AC for the building)
- Underground parking repairs
- Window replacements (R-value improvement)

What typically gets denied or reduced:
- Cosmetic upgrades (lobby paint, hallway carpet)
- Work that should have been maintenance
- Anything where you can't show the prior asset's age

Approval rate trend: the LTB approved ~60-65% of AGI applications in 2024, down from ~80% in 2020. Tenant intervenor groups are well-organized at AGI hearings — expect a contested hearing.

The increase is capped: maximum 3% above the annual guideline per year, spread over up to 3 years for very large applications.

VirtualPM Legal Shield handles AGI prep + hearing at the $199/month tier — including the cost-per-unit calculations and evidence package. Book a free 15-minute consult.