This summer, the Province of British Columbia launched a three-year pilot program aimed at addressing the housing shortage by helping homeowners create rental units on their properties. The Secondary Suite Incentive Program (SSIP) is designed to facilitate the addition of affordable rental suites to homes across the province.
The initiative is one of many strategies being implemented under the province’s Homes for People action plan. It is expected to create thousands of new rental units over the three-year pilot.
Homeowners in most municipalities and regional districts within B.C. can now apply to the program through BC Housing’s secondary suite website. The program offers forgivable loans to cover up to 50% of renovation costs, with a maximum loan amount of $40,000. These loans are intended to help homeowners add a secondary suite or an accessory dwelling unit, such as a garden suite, laneway house, basement suite, or carriage home, on the property of their primary residence.
For the loan to be forgiven, the new rental unit must be rented out at below-market rates for at least five years. Specific rent limits have been set for 2024 to 2025, for the different types of units, including bachelor, one-bedroom, two-bedroom, and three-bedroom-plus suites.
Additionally, suites must have received the necessary building permits and meet municipal standards. They are required to be new, legal, and self-contained with a kitchen and full bathroom. Renovations to existing rental units are not eligible. Permits must have been obtained on or after April 1, 2023. Suites also need to pass inspection and receive an occupancy permit from the local municipal government to confirm that the unit is safe and suitable for tenants.
There are criteria for homeowners, too. They must be Canadian citizens or permanent residents listed as the registered owners of the property, living in the property as their primary residence. Their combined gross annual income must be less than $209,420, and the property must have a B.C. Assessment value below the homeowner grant threshold, which is $2.15 million for 2024.
Eligible costs under the program include expenses directly related to creating the new suite, such as architectural and design fees, structural modifications, electrical work, and building permits. Some appliance costs may also be partially covered. However, expenses related to extensions, conversions, or repairs for the homeowner’s use, as well as landscaping costs and labour performed by the homeowner or household members, are not eligible for reimbursement.
It is important to note that eligibility may change in future phases.
Applications for the SSIP will be processed on a first-come, first-served basis until the annual funding allocation is exhausted. The program is expected to provide forgivable loans to approximately 1,000 homeowners annually, leading to the creation of 3,000 new rental units by the end of the pilot.
