BRAMPTON: The Region of Peel on October 19 launched the My Home Second Unit Renovation program to create more affordable rental units across Peel.
The program provides up to $30,000 in forgivable, interest-free loans to homeowners seeking to upgrade the existing second units and rent them out at affordable rates.
The My Home Second Units program provides:
• Up to $20,000 in interest-free, forgivable loans for eligible homeowners with an existing second unit. The loan supports renovations and repairs needed to bring their unit into compliance with the Ontario Building Code. Recipients must register the renovated unit with their municipality and rent it out at an affordable rate to have the loan forgiven.
• Up to $30,000 in interest-free forgivable loans for homeowners who meet the above criteria and rent their renovated unit to a tenant referred to them by the Region of Peel Housing Services.
• Up to 10% of funding upfront as a grant to secure a contractor.
• Support to help homeowners and tenants maintain successful tenancies.
“The market rate for housing in Peel today is unaffordable for 80% of our residents,” said Aileen Baird, Director of Housing Services. “This pressure will only increase as Peel’s population continues to grow, while only 0.03% of new units built each year are affordable. More innovative partnerships and creative solutions are essential to address these pressures and ensure a home for all in Peel.”
The My Home Second Unit program is one of several initiatives the Region is creating to address the chronic shortage of affordable rental units in Peel. Optimizing existing stock in the community is one of five strategies to address housing affordability in the Region’s long-term Peel Housing and Homelessness Plan.
The program is currently funded to create 57 new affordable units in Peel annually while making homeownership more affordable for loan recipients. This innovative solution creates more units for low-income individuals while also helping middle-income individuals manage the cost of owning a home. If the available funding is fully used, and the program achieves desired outcomes, Peel will seek increased funding from Council to expand the program.
My Home Second Unit Renovation Program The My Home Second Unit Renovation Program provides up to a maximum of $20,000 by way of a forgivable loan to eligible homeowners, and an additional $10,000 to homeowners who rent to a tenant referred by the Region of Peel.
A second unit is described as a separate, contained unit that includes a kitchen, bathroom, and living space within an existing home that can be used for rental purposes.
The unit must be registered or licensed by the local municipality as a legal secondary unit, meeting all Building and Fire code requirements as well as other requirements that the municipality may require in order to ensure that the unit is legal for its use.
The funds support improving the health and safety and affordability of the unit, ensuring that all renovations or repairs meet the Ontario Building Code.
Eligible second units To be eligible for the program, the non-registered second unit must:
• Already exist in the home you live in.
• Can be used for rental purposes.
• Requires repairs or renovations to meet the Ontario Building Code. Once the repairs or renovations have been completed, the second unit must be registered or legally licensed by the local municipality. The program does not apply to constructing a new second unit. Forgivable loans are interest-free and do not have to be paid back if you rent your legal second unit at an affordable rate for a period of 10 years. The loan amount will be registered as a mortgage in the second position on the title to your home for 10 years, after which time it will be removed.
To receive up to $20,000, you must:
• Own and live in the home with an existing non-registered second unit.
• Have a household income of $110,456 or less.
• Rent to a tenant with a maximum household income of $61,642 or less.
• Rent at an affordable rental rate in accordance with Canada Mortgage and Housing (CMHC) market report.
• Complete mandatory landlord and human rights training provided by the Region of Peel.
• Have a building permit and approved architectural drawings from the applicable municipality.
• Comply with all municipal by-laws and inspections.
• Not have debt on your home that exceeds the Municipal Property Assessment (MPAC) value for your home.
• Have an assessed home value that falls within the 90th percentile of your municipality.
To be eligible for this program funding, you cannot have more debt or mortgage registrations registered on the title of your home that, in total, are greater than the Municipal Property Assessment Corporation assessed value of your home, from the most recent Municipal Property Assessment Corporation assessment statement.
• your mortgage
• the forgivable loan from the Region of Peel
• any other mortgages or debts registered against your home
Your home assessed value (MPAC) must be within the following municipal amounts The assessed value of your home must be at or less than the 90th percentile for the municipality you live in. Additional eligibility requirements may need to be met before final approval can be confirmed.
To receive a forgivable loan in the total amount of $30,000, all previously mentioned conditions will apply, plus you must rent to a tenant referred to you by the Region of Peel.
This option provides you with a higher funding amount, assists you with finding a tenant, and helps you gain access to services and supports through Region of Peel Housing Services.
Learn more: https://peelregion.ca/housing/second-unit-renovation-program.asp