BC is about to receive more affordable rental homes as the Province launches a three-year pilot of the new Secondary Suite Incentive Program. Starting Thursday, May 2, 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 up to 50% of the total cost of renovations, up to a maximum of $40,000, to successful applicants who want to add a secondary suite or accessory dwelling unit (garden suite, laneway house, carriage home, etc.) to 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. In September 2023, the Province released Home Suite Home, a comprehensive guide to building and managing a rental suite in B.C., to help homeowners navigate the process for a secondary suite.
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 had nearly 78,000 homes delivered or underway.
What are the benchmark rates for market housing and how much lower must the rent charged be less than the benchmark.