- Submit the occupancy permit issued by your municipality
- Provide proof of construction costs to receive the loan
- Rent out your suite at below market rates
- When program requirements are met, the loan will be forgiven
Frequently Asked Questions
Applications/Eligibility- When can I apply? Applications for the Secondary Suite Incentive Program are now open and eligible homeowners may submit their application online. Applications will be approved on a first come, first served basis until annual funding is used up. We encourage you to review the eligibility criteria above. You can then take steps to gather information for your application.
- How do I know if I qualify and how will I get approval? Successful applicants will receive confirmation from BC Housing with their approval and requirements for next steps including additional documentation that will be required once an occupancy permit is issued in order to receive the rebate.
- What are the terms of the forgivable loan? The rebate amount and BC Housing’s legal costs of $2,000 will be registered on title for 5 years as a forgivable loan. The forgivable loan, inclusive of BC Housing’s legal costs, will be forgiven at 20% each year (i.e., up to $8,400/year, plus all accrued interest) that all program requirements are met:
- The property continues to be the Principal Residence of the owner(s)
- The secondary suite was rented for at least 10 months in the preceding year and the tenancy is under an agreement that complies with the Residential Tenancy Act (RTA) on a month-to-month or minimum 1 year fixed term tenancy
- The rent for the secondary suite is at or below the Rent Affordability Limits established by BC Housing annually
- The tenant is not an immediate family member (spouse, child, parent or sibling) of the homeowner(s)
Below is an example of how the forgivable loan would work based on a homeowner who receives the full $40,000 rebate:
| Timeline | Example | Loan remaining |
|---|---|---|
| Upon occupancy and approval | Homeowner receives the $40,000 rebate and a forgivable loan for the amount of the rebate plus $2,000 for BC Housing’s legal fees will be registered on title of the property | $42,000 |
| After Year 1 | After first complete year of renting at lower than market rent, 20% ($8,400 in this example) is forgiven | $33,600 |
| After year 2 | After second complete year, another 20% is forgiven | $25,200 |
| After year 3 | After third complete year, another 20% is forgiven | $16,800 |
| After year 4 | After fourth complete year, another 20% is forgiven | $8,400 |
| After year 5 | After fifth complete year, the final 20% is forgiven and BC Housing will discharge the loan | $0 |
- Architectural and design fees
- Structural modification
- Electrical work
- Fixtures
- Appliances (50% of actual cost to a maximum of $2,500)
- Building and trade permit fees
- Costs to obtain certificates, drawings and specifications directly related to eligible scope of work
- Materials related to the approved construction
- Contractor labour (not including work done by Applicant or any member of the Household)
- PST and GST
The following costs will not be eligible:
- Extensions, conversions, repair or replacement of items for the homeowners
- Labour costs for work completed by the homeowner
- Tools purchased or rented by the homeowner
- Landscaping costs
- Identification (BC Driver’s License, BC Service Card)
- Proof of Canadian citizenship or permanent residence (e.g., passport, birth certificate, permanent resident (PR) card)
- Proof of income (Income Tax Notice of Assessment)
- Proof of residency in the home to be modified (e.g., driver’s license, utility bill)
- Approved Building Permit from your municipality
- Estimated cost of construction (contractor quotes or other documents supporting estimated cost)
If you have additional questions please contact us at 604-439-4727 or 1-877-757-2577 and select option 3. Alternately, contact us via our secondary suite web form.
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