BC Housing Secondary Suite Incentive Program
This next year, BC Housing is coming out with a new BC secondary suite incentive program to try to get more rental units on the market. The program offers an incentive of $40,000 back to homeowners who put a basement suite in their home and rent it out for the next five years at a below-market rate.
There are lots of questions concerning how this grant will work, so our team at Coleridge Construction decided to do some research and put together some quick facts to help you get more informed on this secondary suite incentive program.
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-You need to own and live on the property
-You need to pay the costs upfront.
-You need to live in an area that allows legal suites.
-Applies to permits issued after April 1, 2023
The $40,000 Return Means It’s A Good Investment
This BC secondary suite incentive program is a good opportunity for homeowners who have been on the fence about renovating their basements into a suite. Renovations for most average legal basement suites cost around $100,000 so to get $40,000 paid back on your investment is amazing.
The Grey Areas
The downside to this BC secondary suite incentive program is there are a lot of grey areas that still have unanswered questions.
- Since you need to apply for it, there is a chance you might not meet the requirements.
- The payment for the $40,000 is only paid out over five years as you have to prove your eligibility every year.
- And the biggest downside is you have to pay for the costs upfront and only get reimbursed later.
Who Are the Best Candidates for This Incentive Program?
Overall, this program works great for someone who already wants to spend the money renovating their basement into a suite and who is okay renting at a lower rate.
We recommend that each homeowner who is considering the BC incentive program do their own math to see if it will actually financially benefit them. You’ll need to take into consideration the loss of income due to lower rent verses the yearly amount being given in return by the program.
If this is something you as a homeowner want to proceed with the best process would be to follow the steps laid out by BC housing in their brochure. Start by seeing if you are eligible and getting plans in place with the city. You can then apply online. Once the application process starts and you have approval you can start your renovations.
Contact Coleridge Construction
If the BC secondary suite incentive program is something you want to take advantage of and you are looking for someone to help with the renovations, contact our renovation experts here at Coleridge Construction.
Call Us Today at 604.302.6312