SECONDARY SUITE PROGRAM FUNDING

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SECONDARY SUITE PROGRAM FUNDING

Post: # 47493Post Flipping4Profit.ca
Fri Nov 09, 2018 3:33 pm


SECONDARY SUITE PROGRAM FUNDING


How much funding can I qualify for?

The maximum amount of funding is $25,000

Funding amount is based on the cost to create the
secondary suite and amount of equity in the home
What is a ‘forgivable loan’?

The Secondary Suite Program funding is considered a ‘forgivable loan’
and
is reduced
at an equal
rate
each year
until the 15
th
year at which time it would be $0
.
N
o payments are
required or interest charged
so long as the terms of the loan agreement are adhered to
Is th
e loan secured?

Accessibility modifications
incorporated in the creation of the secondary unit,
up to $5,000
is
provided to
the homeowner as a grant
and not secured
.
All other loan amounts are secured.

Loans
are secured by the County by registration of
a
mortgage
on title
.

There are legal documents and wording used in this process. Please ask your
County contact if you need
clarification.

T
he
homeowner is
responsible for
the costs to discharge
the
m
ortgage
registration once the loan is
forgiven or repaid
.
Why
is the loan secured?

All
secondary suites
loans are secured
to en
sure that
the County receives notice when a home is sold
. It
also helps ensure that
the
homeown
er and/or their estate advise the County of any event of default.
Other mortgages
?

If you have an existing mortgage, t
he County will
secure
its loan
behind the existing mortgage, provided
the total of all property mortgages and any other financing registered on title
plus
the
secondary suites
funding
do not
exceed the market value of the home,
as assessed by MPAC
or appraisal
.

The County will only p
ostpone
its security
in favour of a
new
first
mortgage. Costs of administering the
postponement of
the County’s security
is
the homeowner
’s responsibility
.
If I’m on a waiting list, can I start the work?

Depending on the amount of funding available, applicants may be advised that they are on a waiting list
.

This does not
me
an that your application has been approved
.

Any work completed prior to
final approval
is
no
t eligible for reimbursement
.
Can I own multiple properties?

Yes, however you need to disclose this fact when applying. You should also let us know if you intend to
own other propert
ies within the next 15 years
as there are two different funding programs;
o
County Funded Secondary Suite Program allows applicants to own multiple properties. You can
apply for funding to create up to 6 secondary suites
,
o
Investment in
Affordable Housing Program (funded by the
Federal/Provincial Governments)
requires that the applica
nt only own one property and
be owner occupied
during the 15 year
term.
Can
the property be ow
n
ed by a corporation
?

Yes, however
the owner(s)’ must still
submit requested photo identification and status in Canada
documents.
Can
the property be a legal duplex,
Boarding Lodging
Rooming
House
or apartment building
?

No
,
funding can only be used to create or legalize secondary suites in zoned residential proper
ties.
Are there timing requirements
?

Yes, construction must begin within 4 months
(
120 days)
of receiving funding approval.
Can I do the work myself?

Some work can be done by the homeowner. Only material woul
d be eligible for rei
mbursement.

All electrical work
must be done by a qualified electrician
.
How do I find a contractor?

The County cannot recommend contractors. An approved contractor must have liability and Workplace
Safety and Insurance Bureau (WSIB) insurance;
o
Ask friends/neighbours who have had similar
work done
,
o
Call your local Builders Association
,
o
Building supply stores
,
Internet, Yellow Pages
.
What if the cost to create the secondary suite is higher than the funding amount?

Any costs over and above the funding amount are the responsibility of the homeo
wner
.

You must pay the excess amount first from your own sources before any program funds are provided
.
When the apartment is done, how soon do I have to rent it out?

Within two months
.

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