BC’s Secondary Suite Program
In today’s challenging housing market, finding affordable rental housing can be a daunting task.
However, the Government of British Columbia has introduced the Secondary Suite Incentive Program to help homeowners create new affordable rental suites in their homes.
This program offers a forgivable loan of up to $40,000 to eligible homeowners who convert part of their property into a secondary suite.
In this blog post, we will explore the details of the program and how LIDA Construction can assist homeowners in taking advantage of this golden opportunity.
Understanding the Secondary Suite Incentive Program
The Secondary Suite Incentive Program aims to address the shortage of affordable rental housing in British Columbia.
Homeowners who qualify for the program will receive a forgivable loan of up to 50% of the cost of renovations, with a maximum amount of $40,000.
Note that this loan does not need to be repaid if the homeowner follows the terms of the program.
Eligibility Criteria for Homeowners
To be eligible for the program, homeowners must meet certain criteria.
They must be registered owners of the property, Canadian citizens or permanent residents, and live in the property as their primary home.
Additionally, the combined gross annual income of homeowners on the title must be less than $209,420 in the previous tax year.
Property Eligibility
The property must be located within the approved list of municipalities or regional districts in British Columbia.
Furthermore, the property’s BC Assessment value must be below the homeowner grant threshold, which was $2.15 million in 2024.
Secondary Suite Requirements
To qualify for the program, homeowners must create a new legal self-contained unit with a kitchen and full bathroom.
Improvements to existing rental units are not eligible, but laneway homes and garden suites are eligible.
The suite must have received municipal or regional district building permits on or after April 1, 2023.
Eligible Costs Covered by the Rebate
- Architectural and Design Fees: Fees paid to architects and designers for planning your project.
- Structural Modifications: Any structural changes necessary for creating the suite.
- Electrical Work: Costs associated with electrical installations or upgrades.
- Fixtures: Cost of fixtures such as sinks, toilets, and lighting.
- Appliances: Up to 50% of the actual cost to a maximum of $2,500.
- Permits and Certificates: Building and trade permit fees as well as costs for certificates, drawings, and specifications directly related to the project.
- Materials: Costs of materials required for the approved construction.
- Contractor Labour: Labour costs for contractors (excluding work done by the homeowner or household members).
- PST and GST: Provincial Sales Tax and Goods and Services Tax on the aforementioned eligible costs.
Ineligible Costs
- Homeowner Labour: Labour costs for work completed by the homeowner.
- Landscaping: Costs related to landscaping.
- Extensions or Repairs: Costs for extensions, conversions, repairs, or replacements for the homeowner’s use.
Application Process
To apply for the Secondary Suite Incentive Program, homeowners need to follow a step-by-step process:
a. Check eligibility online at https://bchousing.org/secondary-suite and review the detailed eligibility criteria.
b. Plan the project and prepare to apply by confirming if zoning allows for a secondary suite on the property, arranging for contractors and financing, and applying for a building permit.
- Gather the necessary documents, including proof of residence and income and a municipal or regional district building permit.
- Submit the online application
- Once approved, contact LIDA Construction to build your secondary suite.
- Submit the occupancy permit and proof of construction costs to receive the loan.
- Rent out the suite at an affordable market rent and maintain program requirements to have the loan forgiven at 20% per year over five years.
Renting Out Your Suite
With construction complete and permits in hand, it’s time to rent out your new secondary suite.
Setting Rent
To comply with the program, the rent must be set below market rates. You can check current affordable market rent rates here. Setting the rent appropriately ensures compliance with the loan forgiveness terms.
New to landlording? The BC government put out a guide called Home Suite Home that walks you through all you need to know about being a landlord.
LIDA Construction: Your Partner in Creating Secondary Suites
Here at LIDA Construction. we understand the importance of affordable rental housing and are committed to helping homeowners take advantage of the Secondary Suite Incentive Program.
With our expertise in construction and renovation, we can assist homeowners in every step of the process, from planning and design to obtaining permits and completing the construction of the secondary suite. Our team of skilled professionals will ensure that the project meets all the program requirements and is completed to the highest standards.
The Secondary Suite Incentive Program offers a unique opportunity for homeowners to create new affordable rental housing in their communities.
With the assistance of LIDA Construction, homeowners can navigate the application process and successfully convert part of their property into a secondary suite.
By taking advantage of this program, homeowners can contribute to the Government of British Columbia’s plans to create more affordable housing in the province while also benefiting from the forgivable loan.
Contact LIDA Construction today to explore how we can help you make the most of this golden opportunity.
