Forgivable Grants for Region of Niagara Home Owners

[Navtaj Chandhoke]

Forgivable Grants for Region of Niagara Home Owners

The Niagara Renovates Program is a program for low-and modest-income households in Niagara that funds:

Affordable housing repairs

Housing modifications for persons with disabilities

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Directory Forgivable Canadian Real Estate Grants

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Eligible Projects

Examples of eligible repairs include:

Structural (including building exterior such as roofs, foundations or walls)

Plumbing

Fire safety

Electrical and/or heating

Examples of eligible accessibility work include:

Ramps

Handrails and chair/bath lifts

Height adjustment to counter tops

Cues for doorbells/fire alarms

The improvements must be permanent and remove physical barriers, safety risks and improve daily living within the home.

Ineligible Projects

Examples of projects that are not eligible include:

Landscaping

Routine maintenance

Cosmetic renovations and repairs

Funding

Households are allowed one application under the Niagara Renovates Program. Funding is provided as a fully forgivable loan, which is written off at an equal rate over a 10 year period. The loan is not repaid if the homeowners remain as owners and live in the home during the 10 year forgivable period.

The maximum loan amount includes a portion for accessibility repairs, if required, of up to $5,000 that does not need to be repaid.

Program Default

If any of the following occur, the homeowner is considered to be in default and the balance of the loan amount must be repaid:

The home is sold

The homeowner stops living in the unit as the primary residence

The funding is used for other purposes

The homeowner has misrepresented information about program eligibility

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Eligibility

To be eligible, households must meet the following criteria:

The total income of all household members must be at or below the following, based on the number of bedrooms in the home:

1 Bedroom – $33,500

2 Bedroom – $41,000

3 Bedroom – $50,500

4+ Bedroom – $61,500

Homeowners must own the home for a minimum of five (5) years.

Homeowners who have previously received Homeownership and/or Niagara Renovates funding are not eligible until the 10 year forgivable period expires.

Note: NRH will determine the homeowners financial capacity to make the repairs requested, based on their income, savings and other liquid assets.

Homeowner Requirements

Complete and sign an application and provide all supporting documentation, including:

Proof of income of all members of household

MPAC Assessment or Property Tax Bill

Insurance coverage

NRH will conduct a title search on the property. Associated costs will be included in the total approved funding amount.

Conditional Approval

If the application is complete and meets eligibility requirements, an inspection will be conducted on the property. A report will be provided to the homeowner with Conditional Approval.

Homeowners are to obtain estimates from professional contractors and provide copies to NRH.

Contractors must provide copies of WSIB coverage and Insurance Coverage as part of the quote process.

Final Approval

Quotes will be reviewed by NRH. Final Approval will be issued via a Letter of Agreement outlining the scope of work, funding amount, and roles and responsibilities of both homeowner(s) and NRH.

The mortgage/charge will be registered on title by NRH. Associated legal costs will be included in the total approved funding amount.

Homeowners are to start work within 30 days of receiving final approval. Work that started prior to written approval by NRH is not eligible.

Homeowners must allow inspections by NRH:

Prior to start of work

During construction (as required)

When project is complete

These inspections are over and above the required inspections for building permit work.

Contact

Contact: 905-682-9201 ext. 3917

Or mail to:

Niagara Regional Housing

Niagara Region Headquarters

Campbell East

1815 Sir Isaac Brock Way

PO Box 344, Thorold, ON

L2V 3Z3

If you require this or any other material in an alternate format, please contact Niagara Regional Housing.

Secondary Suites

The Niagara Renovates Program is a program that funds the creation of Secondary Suites in single family homes. Secondary suite units must have modest floor space and amenities.

A Secondary Suite is defined as a self-contained, separate unit with sleeping, full kitchen and bath facilities and a separate entrance. The new unit must meet applicable zoning, building, fire and property standards.

Funding for Secondary Suites of up to $25,000 is a fully forgivable loan which is written off at an equal amount over a 15 year period, provided the Owner complies with the conditions of the Letter of Agreement.

The loan amount includes a grant portion for accessibility modifications, if required, of up to $5,000 that does not need to be repaid.

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Eligibility

St. Catharines $390,000

Niagara Falls $380,000

Welland $345,000

Lincoln $319,344

Fort Erie $389,229

Niagara-on-the-Lake $460,000

Thorold $420,000

Pelham, Port Colborne, Wainfleet, West Lincoln $500,000

Grimsby $582,646

The total gross income of the incoming tenant in the newly created secondary suite must be at or below the following, based on the number of bedrooms in the secondary suite:

Bedroom Type Bachelor 1 Bedroom

Household Income Limit $27,000 $33,500

Prior to move-in and lease signing, the Tenant is required to complete an Income Verification Form with supporting income documentation, and provide it to NRH to assess initial eligibility.

The Owner is required to incorporate the following clauses into their lease with the secondary suite tenant:

If the Tenant earns above the maximum income limit (issued annually), the Tenant is required to move out of the unit.

The Owner acknowledges that if the Tenant fails to provide initial and annual income verification to NRH, the Owner will be in default of the Letter of Agreement and the balance of the forgivable loan must be repaid.

Secondary Suite Maximum Rents

Secondary suite units must have rents at or below approved average market rents. For 2017, the average market rents are:

Area Bachelor 1 Bedroom

St. Catharines $661 $831

Niagara Falls $566 $809

Welland $625 $757

All Other Areas $634 $802

Households who received Niagara Renovates funding in the past are not eligible for this program.

Program Default

If any of the following occur, the Owner is considered to be in default of the Letter of Agreement and the balance of the forgivable loan must be repaid:

The home is sold

The funding is used for other purposes

The Owner misrepresented information about program eligibility

The Owner charges a rent that is above the maximum allowed rent

The Secondary Suite Tenant fails to provide initial and ongoing income verification to NRH

Program Requirements

Prior to completing a Secondary Suite Application, the Owner is required to obtain written confirmation from their municipal Building/Planning Department that their property is properly zoned to allow for Secondary Suites.

The Owner is required to complete and sign the application form and provide all supporting documentation including:

Written confirmation from the Building/Planning Department that the property is properly zoned

Home insurance coverage

Copy of MPAC Statement or Property Tax Bill

A title search of the property will be conducted by NRH. The associated costs will be included in the total approved funding amount.

Conditional Approval

If the application is deemed eligible for funding, NRH will provide Conditional Approval. At that time, the Owner will be required to submit and obtain approval from the municipal Building/Planning Department & Fire Department for their secondary suite plans/drawings. A copy of the approved drawings is to be forwarded to NRH for review.

When drawings/plans are approved by NRH, the Owner is required to obtain a minimum of three quotes for the construction of the Secondary Suite, obtain contractor WSIB Clearance and Insurance Coverage and forward all documentation to NRH for review and approval.

Final Approval

NRH will review all documentation and will issue Final Approval via a Letter of Agreement, outlining the scope of work, funding amount, and roles of the Owner(s) and NRH.

All Owners must sign the Letter of Agreement.

The Letter of Agreement and Mortgage/Charge will be registered on title. Registration fees will be included in the total approved amount. NRH will not issue any payment until all documents are registered on title.

The Owner is required to start work within 45 days. Work started prior to written approval by NRH is not eligible.

The Owner is required to allow inspections by NRH:

Prior to start of work

During construction

When project is complete

These inspections are over and above the required inspections by the municipal Building Department.

Other Regional Programs

Niagara Region partners with local municipalities to provide incentives for housing in “Community Improvement Plan” areas. If a property is in one of these areas, homeowners may be eligible for Regional/ Municipal contributions to their project. Programs that may assist homeowners with their project are set by each municipality. Homeowners should check with their local municipality to determine if they are eligible for any incentive programs.

DISCLAIMER

We believe the information contained in this

article to be accurate.It is presented with the

understanding that we are not engaged in

rendering legal,accounting, or investment advice.

When professional assistance is required,

utilize the services of a licensed real estate

broker, lawyer, accountant,

or other consultant as may be required.

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