Media Release

January 24, 2024

Applications Now Open for Secondary and Basement Suite Incentive

As part of the Provincial Government’s continued efforts to increase the availability of affordable housing in Newfoundland and Labrador, applications opened today for the Secondary and Basement Suite Incentive pilot program.

In October 2023, this initiative was announced as one of the pillars of the Five-Point Plan to help make housing more affordable for Newfoundlanders and Labradorians by supporting the creation of more housing. This program will allow homeowners to access a forgivable loan of 50 per cent of the cost of renovations, up to a maximum of $40,000, to create a new, self-contained secondary or basement suite within their home.

These loans will be fully forgivable, provided the new unit is rented out below market rates for a minimum of five years. The rental rates will be established by the Newfoundland and Labrador Housing Corporation (NLHC), based on annual rental market reports published by Canada Mortgage and Housing Corporation.

Criteria to qualify for the incentive include:

  • The property where the new unit will be developed must be the primary residence of the applicant, and the applicant must be a Canadian citizen or permanent resident;
  • The individual renting the unit cannot be a sibling or child of the homeowner/applicant, but may be a parent or parents aged 65 or older;
  • The new unit must be registered (where applicable), self-contained and provide living, sleeping, eating, food preparation and sanitary facilities for the exclusive use of the household occupying the unit; and
  • A municipal building permit for the unit must be dated after January 1, 2024.

A full list of program criteria, as well as information on how to apply, can be found on the NLHC website here. A full list of eligible costs under the program can be found in the backgrounder below.

Total funding for the program is $4 million and eligible applicants will be approved on a first-come, first-served basis until all funding is allocated.

“Our government continues to invest in creative solutions to increase access to both housing that is affordable and provincially owned social housing in our province. This incentive will support homeowners to create upwards of 100 new basement apartments or secondary suites, helping families find an affordable place to live within existing communities and near existing services. We will continue to advance initiatives under the five-point plan to help meet demand for affordable housing throughout the province.”
Honourable Paul Pike
Minister Responsible for the Newfoundland and Labrador Housing Corporation

“The Canadian Home Builders’ Association of Newfoundland and Labrador is optimistic that this program will not only provide more rental options for Newfoundlanders and Labradorians, but also create opportunities for our members to complete projects integral to increasing the housing supply in our province.”
Alexis Foster
Executive Officer
Canadian Home Builders’ Association – Newfoundland and Labrador


Learn more
Provincial Government Launches Five-Point Plan to Improve Availability of Housing That is Affordable

Proposals Invited for Development of Land for Rental Housing That is Affordable

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Media contact
Marc Budgell
Newfoundland and Labrador Housing Corporation


List of Eligible Costs Covered Under the Secondary and Basement Suite Incentive Program

The following list includes costs that can be covered under the Secondary and Basement Suite Incentive Program:

Eligible costs:

  • Architectural and design fees;
  • Inspection fees (where applicable);
  • Structural modification;
  • Electrical work;
  • Fixtures;
  • Appliances (50 per cent of actual cost to a maximum of $2,500);
  • Building and trade permit fees;
  • Costs to obtain certificates, drawings and specifications directly related to eligible scope of work;
  • Materials related to the approved construction;
  • Contractor labour (not including work done by applicant or any member of the household); and
  • HST.

Costs that are not eligible include:

  • Repair of existing rental units;
  • Labour costs for work completed by the homeowner; and
  • Landscaping costs.

Any cost not covered by either list must be approved by NLHC prior to work commencing. For more information, visit Secondary Basement Suite Incentive Program FAQ.