Q&A: BC Housing’s Secondary Suite Incentive Program (SSIP)
An initiative to create more affordable housing within existing buildings in British Columbia, BC Housing launched a portal for homeowners to apply for the Secondary Suite Incentive Program.
Taking advantage of this funding is not only a great investment in your in-house rental efforts but is also a great way for homeowners across Vancouver, Surrey, Burnaby and the Lower Mainland to increase the value of their properties without going into long-term debt.
As experts in basement renovations and upgrades, we’re here to provide you with everything you need to know about the SSIP based on questions we’ve heard from interested clients.
Ready for a quote on your basement? Submit a request here.
What is the incentive in the Secondary Suite Incentive Program?
The SSIP provides up to 50% of renovation costs* ($40,000 max) homeowners put toward the creation of an affordable basement suite to be utilized as a rental suite. Starting as a loan, the amount will be forgiven if the homeowner follows the affordability and ownership requirements for five years.
Suites in gardens and laneways are also eligible for incentive application.
Note: You cannot receive this incentive to renovate an existing basement rental.
What counts as an affordable secondary suite?
Putting the affordable in BC’s desired affordable housing, the rental suite covered by the program must be rented out for a rate below BC Housing’s set market rate for five years. The homeowner must also live in the same home during this duration.
Secondary suites will be required to have at least one kitchen and one full bathroom.
Who is eligible for the Secondary Suite Incentive Program?
To be eligible for the SSIP, you must be a Canadian citizen or permanent resident, be registered as the owner of the property you’d like to renovate to have the suite, live in the home as your primary residence and have a combined gross annual income that doesn’t exceed $209,420.
Your property must also have a value that is less than the homeowner grant threshold as estimated by a BC assessment.
This year, the threshold is $2.15 million.
What costs are covered by the SSIP?
Renovation costs covered by the Secondary Suite Incentive program include:
Architectural fees
Appliances (50% of costs, $2,500 max.)
Contractor labour
Certificate, drawing and eligible scope of work costs
Electrical
Fixtures
Materials
Modifications of structure
PST
Landscaping, home item replacements, unit repairs and homeowner labour costs do not count towards the incentive.
What do I need to include in my application?
When applying, you will need to have your proof of residence, proof of income, and a municipal building permit. Plus you’ll want to have already arranged your financing and contractor(s).
What happens once I’m approved?
After you’re approved for the incentive, you complete your secondary suite followed by the submission of your occupancy permit and proof of eligible costs listed above. Your loan will be received after submission of these documents and receipts.
As your secondary suite is rented out and follows incentive protocols, your loan will be forgiven at a rate of 20% per year up to and including your fifth year.
Ready to create your dream secondary suite? Contact us today.