Secondary Basement Suite Incentive Program

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Program Overview

The Secondary and Basement Suite Incentive Program aims to grow the availability of affordable housing options throughout Newfoundland and Labrador. The program will provide funding to help homeowners create a new, self-contained secondary or basement suites within their home that is to be rented at below market value rates.

Homeowners who qualify will receive up to 50 per cent of the cost of renovations, up to a maximum of $40,000. The program will provide a rebate in the form of a forgivable loan, which does not need to be repaid if the homeowner follows the terms of the program.

For the loan to be forgiven, the new unit must be located on the same property where the homeowner lives and must be rented out at below market rates, as established by Newfoundland and Labrador Housing Corporation (NLHC), for at least five years.

Who is Eligible?

  • Applicant:
    • Current homeowners who reside in the home as their primary residence or currently building new home as their primary residence.
    • Canadian citizens or permanent residents
  • • Basement or Secondary Suite:
    • 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
    • Received municipal building permit after January 1, 2024
  • Renter:
    • Cannot be a sibling or child of the homeowner/applicant, but may be a parent or parents aged 65 or older
    • Must have a household income below $42,000

What Do I Need to Apply?

  • Proof of residency in the home (e.g., driver’s license, utility bill); or signed builder contact with address listed
  • Proof of home ownership for the home to be modified (e.g. deed or sworn affidavit);
  • Approved Building Permit from your municipality (where applicable);
  • Confirmation of assets or private financing in place for the balance of funds required to complete the renovation; and
  • Estimated cost of construction and brief description of the scope of work required to establish the secondary or basement suite.

Additional Program Information:

  • The program budget is $4 million, with qualified applications to be approved on a first- come, first-served basis.
  • Applicants may receive assistance to create more than one additional unit pending approval from the Authority Having Jurisdiction (AHJ)
  • Suites may be developed through an extension to the home, conversion of existing space or undeveloped section of the home or new construction.
  • The maximum monthly rental rates are established by NLHC, based upon the rental market reports developed annually by Canada Mortgage and Housing Corporation.

The following rates are applicable as of January 2024:

Secondary and Basement Suites Incentive Program
Community/Bedroom Bachelor 1 BR 2 BR 3 BR
St. John’s CMA $665 $730 $880 $840
Island Communities $650 $700 $795 $820
Labrador $665 $730 $880 $840
  • The following is a list of costs which are eligible under the Program:
What costs are eligible? What costs are not eligible?
  • Architectural and design fees related to the production of drawings and specifications directly related to eligible scope of work
  • Inspection fees (where applicable)
  • Structural modification
  • Mechanical, Plumbing, and Electrical
  • Appliances (50% of actual cost to a maximum of $2,500)
  • Building and trade permit fees
  • Relevant construction materials
  • Contractor labour (not including work done by Applicant or any member of the Household)
  • HST
  • Repair of existing rental units
  • Labour costs for work completed by the homeowner
  • Landscaping costs
  • New secondary or basement suites must meet all applicable codes and standards as required by the Authority Having Jurisdiction (AHJ). An occupancy permit will be required upon completion. In areas where occupancy permits are not provided, completion of the basement suite shall be verified by a third-party inspector (See FAQ document).
  • Program funding is released only after an occupancy permit or qualified inspection form has been provided. The homeowner/applicant must have a payment arrangement in place with the contractor(s) and/or bridge financing available to complete the renovation.
  • NLHC will secure the forgivable loan with a registered mortgage, amortized over five years during which the homeowner must rent the unit under the terms and conditions of the loan agreement.

Combining with Municipal Grants

If you live in St. John’s, Mount Pearl or Grand Falls-Windsor you can combine the provincial Secondary and Basement Suite Incentive Program with similar municipal grants. More information on the municipal programs can be found here:

City of St. John’s
City of Mount Pearl
Town of Grand Falls-Windsor

How to Apply?
Applications may be submitted to:

Mail Email Fax
Program Delivery Department
Newfoundland and Labrador Housing Corporation
2 Canada Drive, P. O. Box 220
St. John’s, NL A1C 5J2		 sbsi@nlhc.nl.ca (709) 724-3149

 

Application Form:

To apply online, or print an application, see below:

SBSI Apply Online SBSI PDF PDF

Links:
Secondary Basement Suite Incentive Program FAQ