Residential Rehabilitation Assistance Program (RRAP)

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Residential Rehabilitation Assistance Program (RRAP)

Post: # 4699Post Flipping4Profit.ca
Tue Jul 24, 2012 6:08 pm

Residential Rehabilitation Assistance Program (RRAP) in Canada

Residential Rehabilitation Assistance Program (RRAP) in Canada Program

The Residential Rehabilitation Assistance
Program (RRAP) is a federal government
program that provides financial assistance to
renovate or repair housing that needs to be
brought up to basic health and safety
standards, or to convert non-residential
properties to affordable housing. Deferred
maintenance, cosmetic replacements,
improvements for resale, and works carried
out before a RRAP loan is approved are not
eligible.

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RRAP provides funding under various
categories, each with distinct eligibility criteria.
In most cases, to be eligible, homeowner or
tenant incomes must be below the Core Need
Income Threshold (CNIT), a limit set by the
Canada Mortgage and Housing Corporation
(CMHC) based on household size and area.
Also, rents must be at or below the Median
Market Rent (MMR) established by CMHC for
the area.

Details

Homeowner (RRAP)


• Homeowners may apply if the value of
their house is below a specific figure, and
if their household income is below the
CNIT.

• Eligibility is limited to properties lacking
basic facilities or in need of major
structural, electrical, plumbing, heating, or
fire safety repairs.

• Maximum total loan for the Toronto area is
$16,000.

Rental (RRAP)

• Offers financial assistance to landlords of
affordable rental housing to pay for
mandatory repairs to self-contained units
occupied by tenants with incomes below the
CNIT.

• Eligibility is limited to projects having pre
and post-RRAP rents at or below the MMR
for the local area. In
addition, the property must
lack basic facilities or
require major structural,
electrical, plumbing,
heating, or fire safety
repairs.

• Assistance is in the form of
a fully forgivable loan of up
to 100 per cent of the cost
of mandatory repairs.
Landlords must enter into
an agreement that places a
ceiling on the rents that
may be charged after the
repairs are completed, and limits rent
increases during the term of the agreement.
The landlord must also agree to limit new
occupancy to tenants with incomes below
the CNIT.

• In the Toronto area, the maximum
assistance per unit is $16,000.


Rooming House (RRAP)

• Offers assistance to owners of Rooming
Houses with rents affordable to low-income
individuals.

• The property must lack basic facilities, or
require major structural, electrical,
plumbing, heating, or fire safety repairs.

• The assistance is in the form of a fully
forgiveable loan of up to 100 percent of the
cost of mandatory repairs.

• In the Toronto area, the maximum
assistance per bed unit is $16,000.


Residential Conversion (RRAP)


• To be eligible, landlords must own and
convert non-residential properties to create
affordable rental accommodation.

• Limited to properties that are
environmentally safe and can be feasibly
converted to residential accommodation,
which will be viable based on agreed upon
post conversion rents. The applicant must
be able to demonstrate that the appropriate
residential zoning and building permits can
be obtained.

• In the Toronto area, the maximum
assistance is $24,000 for each self-contained
rental unit


Persons with Disabilities (RRAP)

• Offers financial assistance to homeowners
and landlords to undertake accessibility
work to modify dwellings occupied or
intended for occupancy by persons with
disabilities.

• Homeowners may apply if the value of their
property is below a specific figure, and if
their household income is below the CNIT.

• Landlords may apply for modifications to
units occupied by tenants with incomes
below the income threshold.

• Modifications must be related to housing
and be reasonably related to the disabled
occupant’s disability.

• In the Toronto area, the maximum
assistance is $24,000. For homeowners, the
maximum forgivable component is $16,000.


Secondary/Garden Suite (RRAP)


• Offers assistance to convert/develop existing
residential properties that can reasonably
accommodate a secondary self-contained
unit.

• Eligibility is limited to existing family
housing residential properties where a self contained
secondary or garden suite is being
created.

• The property must meet municipal zoning
and building requirements for
secondary/garden suites.

• Landlords must enter into an Operating
Agreement which establishes the rent that
can be charged during the term of the
Agreement. A ceiling is also placed on the
income of households who will occupy the
newly created self-contained unit.

• Assistance is in the form of a fully
forgivable loan up to a maximum of
$24,000.

For more information call CMHC at
1-800-704-6488




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