Source: Government of Canada regional news
More affordable rental homes are on the way for people in B.C. as the Province launches a three-year pilot of the new Secondary Suite Incentive Program.
“There is an urgent need for more homes British Columbians can actually afford, and many homeowners want to be part of the solution to the housing crisis,” said Premier David Eby. “This new incentive program makes it possible for homeowners to add a rental suite to their home, creating thousands of affordable rentals. This is a win for homeowners, a win for renters and a win for communities throughout our province.”
Starting Thursday, May 2, 2024, homeowners in most B.C. municipalities and regional districts can apply to the program through BC Housing’s secondary suite website.
The program will offer forgivable loans of as much as 50% of the total cost of renovations, up to a maximum of $40,000, for successful applicants to add a secondary suite or accessory dwelling unit (garden suite, laneway house, carriage home, etc.) on the property of their primary residence.
The loan can be forgiven if the new unit is rented at below market rates for at least five years.
“We’re making it easier and more affordable for homeowners to become part of the solution to the housing shortage,” said Ravi Kahlon, Minister of Housing. “This program will add thousands of long-term, below-market rental homes to urban and rural communities across B.C. and is one of many collaborative approaches we’re taking through our Homes for People action plan.”
Approximately 1,000 homeowners each year will receive forgivable loans, which will add 3,000 new rental units at below-market rates. Those rates for bachelor, one-bedroom, two-bedroom and three-bedroom-plus units have been set for 2024-25.
To help homeowners navigate the process for a secondary suite, in September 2023,the Province released Home Suite Home, a comprehensive guide to build and manage a rental suite in B.C.
To be eligible, homeowners must also:
- obtain a building and occupancy permit from their local government;
- have a combined gross annual income of homeowners on title of less than $209,420; and
- have a BC Assessment value on their property below the homeowner grant threshold ($2.15 million in 2024).
Homeowners who want to know if they’re eligible for the program can check BC Housing’s website. Eligible applications to the program will be approved on a first-come, first-served basis by BC Housing.
In fall 2023, the B.C. government passed legislation centred on delivering thousands more homes for people where they’re needed most. These actions included establishing new small-scale, multi-unit zoning requirements that permit secondary suites or accessory dwelling units, such as a garden suite or laneway home, in every community in B.C.
The program is part of the Homes for People action plan and a $19-billion housing investment by the B.C. government. Since 2017, the Province has nearly 78,000 homes delivered or underway.
Quotes:
Grace Lore, MLA for Victoria-Beacon Hill –
“Affordable, attainable and available rentals in our communities, including here in Victoria, are essential. Creative solutions like the Secondary Suite Incentive Program will create and support investments in the homes that people need.”
David Hutniak, CEO, LandlordBC –
“Secondary suites are an important source of long-term rental housing across British Columbia. This initiative by the Province will encourage homeowners with under-utilized space to create additional units of badly needed rental housing.”
Neil Moody, CEO, Canadian Home Builders’ Association of BC –
“Across the province, many of our members are working with homeowners who see the value in adding a secondary suite to their home. The Secondary Suite Incentive Program will help to alleviate some of the financial burden on homeowners when they take on a project of this scope. It will help ensure the construction is completed safely and with the proper permitting and approvals.”
Learn More:
To see rates for bachelor, one-bedroom, two-bedroom and three-bedroom-plus units for 2024-25, visit: https://www.bchousing.org/sites/default/files/media/documents/BC-RAHA-Rent-Affordability-Limit.pdf
For information about the Secondary Suite Incentive Program, to sign up for updates and check eligibility, visit: https://bchousing.org/secondary-suite
To see a quick fact sheet for the Secondary Suite Incentive Program, visit: https://www.bchousing.org/sites/default/files/media/documents/BCH-Secondary-Suite-factsheet-English-April-2024.pdf
To read the Home Suite Home guide, visit: https://gov.bc.ca/HomeSuiteHome
To read the Homes for People action plan, visit: https://news.gov.bc.ca/releases/2023HOUS0019-000436
A backgrounder follows.
