Residential Rehabilitation Assistance Program (RRAP) In Canada — Conversion
Canada Mortgage and Housing Corporation (CMHC) through RRAP-C assists in the creation of affordable housing for low-income households by providing financial assistance to convert nonresidential properties into affordable, self-contained rental housing units or bed-units.
CMHC delivers renovation programs in Prince Edward Island, where the province cost-shares on a 75% federal / 25% provincial basis and in Yukon Territory.
In other jurisdictions, Provinces and Territories may choose to design and deliver renovation programs that are cost-shared with the federal government. Information on Provincially/Territorially designed and delivered housing programs are provided under Provincial and Territorial Affordable Housing Links and Agreements.
Who Can Apply?
Eligible clients are private entrepreneurs, non-profit corporations and co-operatives owning and converting nonresidential properties to create bona fide affordable rental accommodation. Eligibility is limited to properties that are environmentally safe, that can feasibly be converted to residential accommodation, and that will be viable based on agreed post-conversion rents. Selected clients must enter into an Operating Agreement which establishes the rents that can be charged during the life of the Agreement. A ceiling is also placed on the income of households that can occupy the newly created self-contained units.
Only work related to the conversion and rehabilitation of non-residential properties for the creation of residential units and bed-units is eligible for assistance. Up to 100 per cent of the eligible cost of conversion up to the maximum loan amount is eligible for assistance. The costs above the maximum RRAP loan must be borne by the owner.
Any work carried out before RRAP loan is approved in writing is not eligible. The required Environmental Site Assessments are not eligible for funding under this program.
The assistance is in the form of a fully forgivable loan, which does not have to be repaid provided the owner adheres to the conditions of the program. The maximum loan available varies in accordance with the type of unit(s) being created and the geographic zone in which the property is located:
Zone 1: Southern areas of Canada $24,000/ unit $16,000/bed-unit
Zone 2: Northern areas $28,000/ unit $19,000/ bed-unit
Zone 3: Far northern areas $36,000/ unit $24,000/ bed-unit
Additional assistance may be available in areas defined as remote.
To find out how to apply for financial assistance or for more information about these programs please call CMHC toll free at 1-800-668-2642
To learn about investing in Canadian Real Estate Join upcoming Canadian Real Estate Apprenticeship at
http://www.worldwealthbuilders.com/real ... apprentice
and subscribe to monthly Newsletter at no cost at http://www.WorldWealthBuilders.com