The Newfoundland Secondary Basement Suite Incentive Program details just dropped and we’ve got all the information you’ll need to apply.
The Newfoundland and Labrador Housing Corporation (NLHC) has established the Secondary and Basement Suite Incentive Program to increase the availability of affordable housing options in Newfoundland and Labrador.
The program offers financial assistance to homeowners to create new, self-contained secondary or basement suites within their homes, which must be rented at below-market rates. Here are the key details of the program:
- Funding: Homeowners who qualify can receive up to 50% of the cost of renovations, with a maximum of $40,000. The funding is provided as a forgivable loan, meaning it does not need to be repaid if the homeowner adheres to the program’s terms.
- Loan Forgiveness: To have the loan forgiven, the new unit must be on the same property as the homeowner’s residence and must be rented out at below-market rates for at least five years, as determined by the NLHC.
- Eligibility: The program has specific eligibility criteria for homeowners, which can be found in the program’s documentation.
- Application: The application process involves submitting necessary information to the NLHC, and applications are approved on a first-come, first-served basis until the allocated budget is exhausted.
- Cost Coverage: Eligible costs include architectural and design fees, inspection fees, structural modifications, electrical work, fixtures, appliances (up to a certain amount), permit fees, and contractor labor. Costs that are not eligible include repairs to existing rental units, labor by the homeowner, and landscaping costs.
- Rental Rates: The program has established rental rates for different types of units across various communities in Newfoundland and Labrador. For example, as of January 2023, the rates for a bachelor suite in St. John’s CMA are $665, while a 3-bedroom suite is $840.
- Budget: The program operates within a $4 million budget, and the rebate amount is registered on the title of the homeowner’s primary residence for five years.
For more detailed information, including the application form and FAQs, homeowners are encouraged to visit the NLHC website and review the program’s fact sheet.
Secondary Basement Suite Incentive Program Summed Up
- Provides funding to help homeowners create a new, self-contained secondary or basement suite.
- Homeowners can receive up to 50% of renovation costs, up to $40,000.
- The funding is a forgivable loan if terms are met.
- The new unit must be rented at below-market rates for at least five years.
- Eligible costs include architectural fees, structural modifications, electrical work, and more.
- Ineligible costs include repairs to existing units, homeowner labor, and landscaping.
- Rental rates are established by NLHC and vary by community and unit size.
- Applications are approved on a first-come, first-served basis.
- The program has a $4 million budget.
- The rebate is registered on the homeowner’s property title for five years.