BC is launching its three-year pilot of the new Secondary Suite Incentive Program with a sweet offer of up to $40,000 in forgivable loans but you do have to rent the unit at below market rent as part of its drive to create affordable housing. 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.

By DESIBUZZCanada Staff

VICTORIA – BC is launching its three-year pilot of the new Secondary Suite Incentive Program with a sweet offer of up to $40,000 in forgivable loans but you do have to rent the unit at below market rent as part of its drive to create affordable housing.

“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.