There is no denying that Vancouver has a shortage of affordable housing. In an attempt to add more affordable housing, the BC Government has announced that it plans to make secondary suites legal throughout the province. In addition, they will launch a pilot program, called the Secondary Suite Incentive Program (SSIP) to help homeowners build these suites.
How does the SSIP Work?
The SSIP will launch in spring 2024. It will provide approximately 3,000 homeowners with forgivable loans. The loans are to cover 50% of the construction cost of installing the new suite, to a maximum of $40,000. In order to qualify for the loan, the property must be rented at below market value rates for a minimum of 5-years. Lastly, the loan will be payable as a rebate to owners after construction is complete and an occupancy permit has been issued.
Who Qualifies for the SSIP?
There are several different criteria which must be met to qualify for the SSIP:
Homeowners must meet the below criteria:
- Be the registered owners of the property;
- Be Canadian citizens or permanent residents;
- Live in/on the property as their primary residence;
- Their combined household income cannot exceed the 80th income percentile for couples with children in B.C., as determined by BC Housing. This amount will be set annually;
- Have equity in the property that can be leveraged as security for the forgivable loan as a registered mortgage;
- Agree to rent the secondary suite at below market rates for at least five years.
The Property must meet the below criteria:
- Be an existing single-family home, duplex, or other housing, as permitted by the BC Building Code;
- Be located in an eligible incorporated municipality;
- Have a value below the BC Home Owner Grant threshold ($2.125 million for 2023). This will be set annually.
The Secondary Suite must meet the below criteria:
- Have all required permits;
- Must include self-contained kitchen and full bathroom facilities (including a shower or bath) that are not shared with other units on the property;
- Cannot be rented out by the homeowner to an immediate family member.
- Projects to add a third suite to properties with an existing secondary suite may be eligible, provided they comply with all other program eligibility criteria;
For more information on the SSIP click here or contact your Two Awesome Realtors!
