For those of you wanting to contribute to more affordable housing in your communities, a new incentive program will help you do just that.
BC Housing just announced that as of April 2024, homeowners will be able to apply for the Secondary Suite Incentive Program (SSIP). This helps to ease the financial burden of building a secondary suite as long as homeowners rent it out for below market value.
How does the SSIP work?
Homeowners who qualify for the program will receive up to 50% of the cost of renovations, up to a maximum of $40,000. The program will provide a rebate in the form of a forgivable loan—meaning a loan that does not need to be repaid if the homeowner follows the terms of the program.
For the loan to be forgiven, the new unit must be located on the same property where the homeowner lives and must be rented out at below market rates, set by BC Housing, for at least five years.
Who is eligible for the SSIP?
In order to be eligible, homeowners must be:
- Registered owners of the property
- Canadian citizens or permanent residents
- Use the property as their primary residence
- Have a combined gross annual income of less than $209,420 in the previous tax year
In order to be eligible, the property must be:
- Located within one of the 161 incorporated municipalities in British Columbia.
- Have a BC Assessment value below BC’s homeowner grant threshold.
In order to be eligible, the secondary suite must be:
- A new legal self-contained unit with a kitchen and full bathroom (improvements to existing rental units are not eligible).
- A laneway home or garden suite
- Approved with municipal building permits on or after April 1, 2023
What are the steps to get started?
- Determine eligibility by cross-referencing the above section.
- Plan your project and prepare to apply. In this step, you’ll want to check with your municipality to confirm if your zoning allows for a secondary suite on your property, arrange for contractors and financing, and apply for a building permit.
- Apply online. Once applications open in April 2024, submit your online application through bchousing.org/secondary-suite. You will need documents demonstrating eligibility via proof of residence and income and a municipal building permit.
- Receive approval and begin construction. Once you’ve been approved, you can begin and complete building your secondary suite!
- Submit occupancy permit and proof of construction costs. Once the secondary suite has been built, you’ll need an occupancy permit issued by your municipality. Then, you’ll need to submit the occupancy permit and proof of construction costs to receive the loan.
- Rent out your suite according to program requirements. Rent out your new secondary suite and an affordable market rent in order for the loan to be forgiven at 20% per year over five years if program requirements are met.
Sounds pretty great, right?
For more information, visit this link. To find a home with the potential for a secondary suite, don’t hesitate to reach out to me.