Simcoe County Secondary Suites Program
(Feature Photo by David Gonzales from Pexels)
Maybe you've heard it lately, the huge buzz about garden suites in Toronto and Barrie, among other locales. Many Canadian cities have recently started looking to add secondary residences to single-family properties, as a way to provide more affordable housing. These secondary residences often are referred to as garden suites, but also can take the form of a secondary apartment in an existing home.
Simcoe County has approved a program that will help fund the development of additional housing, in the form of the Secondary Suites Program. This program provides financial assistance in the form of a 15-year forgivable loan, of up to a maximum of $30,000 and is available to residents of Bradford.
How the Simcoe Secondary Suites Program Works
The program lends out up to $30,000 in a forgivable mortgage, that is forgiven at an equal amount yearly, provided the property still complies with all the terms of the program.
- To qualify for a Secondary Suites loan, the following conditions must apply (subject to change by the County);
- The subject property must be located in Simcoe County.
- All mortgage and property tax accounts must be in good standing.
- The applicant must legally reside in Canada.
- The home must be insured for the full replacement value.
- The proposed renovations/construction must comply with municipal requirements and Ontario building codes.
Rental Unit Requirements
Rents must remain affordable for the life of the loan, at or below the average Market Rent as established by Canada Mortgage and Housing Corporation, and the incomming tenants must have a maximum household income below an amount as established by the Ministry of Municipal Affairs and Housing. As well, annual reporting of rental amounts is required.
Certain types of renovation work is not eligalbe under the program. Cosmetic repairs, such as new countertops or appliances would not qualifty. As well, landscaping, paving and solar panels are other examples of work the loan could not be applied to.
Loan Forgiveness
Provided that the terms and conditions of the Simcoe Secondary Suites Program are followed, the loan will be forgiven at an equal amount yearly until the 15th year, or the house is sold (or otherwise defaults). For example, if you recieved the full loan amount of $30,000, you could expect $2000 to be forgiven for every year that the home met the terms and conditions.
To Apply
You can print out an application at the following link
www.simcoe.ca/ontariorenovates
For more information on the program you can check out the county website at
www.simcoe.ca/dpt/sh/secondary-suites
