Building More Housing that is Affordable

Please see our Frequently Asked Questions.

Five Point Plan

1. New Residential Rental Property Rebate
2. Housing Development Loan Program
3. Unlock Surplus Government Land and Buildings
4. Homeownership Assistance Program
5. Secondary and Basement Suite Incentive

Point One: New Residential Rental Property Rebate

1. Provincial HST rebate to match both the existing federal rebate and the recently announced federal enhanced rebate.
2. Purchased or owner-built residential rental properties
   1. Provincial rebate proposed to be 36 per cent of the 10 per cent provincial portion of the HST (Maximum rebate of $12,600)
3. Provincial rebate for purpose built rental properties
   1. Rebate of 100 per cent of the 10 per cent provincial portion of HST on qualifying rental properties

Point Two: Housing Development Loan Program

1. Offers low-interest loans to eligible property developers to incentivize the construction of rental housing
2. The Provincial Government will commit up to $50 million for the program by way of secured loans.
3. Loan Details
   1. The fixed interest rate to be charged will be the Provincial Government’s cost of borrowing at the time of the loan agreement up to a total project cost of $6 million. For projects exceeding $6 million, the portion over $6 million will be charged the Bank of Canada Prime Rate.
   2. Loans will be amortized over 25 years.
   3. The loan will be interest payments only up to a 12-month maximum during construction until substantial completion.
   4. The loan cannot exceed 90 per cent of the property construction value.
4. To qualify, new housing construction projects must pertain to purpose-built rental housing units (of four or more units), including modular homes or the conversion of non-residential buildings into rental housing units
5. Program details will be updated once applications are made available, anticipated in Winter 2024.

Point Three: Unlock Surplus Government Land and Buildings

1. Provide surplus government land and buildings for construction or conversion to purpose-built rental housing, including modular construction.
2. All provincially owned surplus land and buildings will be assessed for housing suitability.
3. As land sites and properties are deemed suitable, they will be made available through an open process.
4. Proposals submitted will be assessed against defined criteria, including project viability and sustainability, number of units and percentage of affordable units, and ability and timeline to deliver. Proposals will be ranked based on the project’s overall suitability. Program details will be updated once applications are made available.

Point Four: Homeownership Assistance Program

1. Provides a loan to first-time homebuyers with lower-to-moderate incomes who qualify for a mortgage to access the required down payment to purchase a home.
2. In addition to the loan, a grant is available to assist with up to 50 per cent of total closing costs to a maximum of $1,500 to match the Federal First-Time Home Buyers’ Tax Credit.
3. Targeting the first 150 qualified applicants.
4. Applications to open November 1, 2023 through the Newfoundland and Labrador Housing Corporation.
5. Please see more information here (First-Time Homebuyers Program (FHP))

Point Five: Secondary and Basement Suite Initiative 

1. Helps create affordable rental housing within the existing housing supply, for less than the cost to build a large-scale, multi-unit housing development.
2. Financial support to turn a portion of a person’s primary residence into a suite for the long-term rental market.
3. Homeowners will be able to access a five-year forgivable loan of 50 per cent of eligible renovation costs, to a maximum of $40,000.
4. # Units: 100 with planned implementation by January 2024 through the Newfoundland and Labrador Housing Corporation. Additional program details will be available at that time.
5. For the loan to be forgiven/earned:
   1. The homeowner must continue to live in the home, and
   2. The new suite must be rented at below market rates (to be established by NLHC) for at least five years
6. The new suite must be a new legal-self contained unit with a kitchen and full bathroom. Improvements to existing rental units are not eligible)
7. Examples of eligible costs:
   1. Architectural and design fees; structural modifications; electrical work; plumbing work; fixtures; building and trade permits; materials related to the approved construction; contractor labour.
8. Examples of ineligible costs:
   1. Extensions, conversions, repair or replacement of items for the homeowners.
   2. Labour costs for work completed by the homeowner.
9. Interested homeowners are encouraged to review the local government zoning and planning bylaws.