What are the latest updates and regulations regarding secondary suites in my area?
The Secondary Suite Incentive Program (SSIP) has been expanded to 16 regional districts across British Columbia, up from the initial 15 districts launched in 2023.
The SSIP now offers forgivable loans of up to 50% of the total cost of renovations, with a maximum of $40,000 per applicant, to create a new secondary suite or accessory dwelling unit.
To encourage the creation of affordable rental housing, homeowners who receive SSIP funding must agree to rent out the new suite at below-market rates for a minimum of 5 years.
The program now also provides options for homeowners to build purpose-built, barrier-free secondary suites to accommodate aging family members or those with disabilities.
In addition to the SSIP, the province has launched a new Secondary Suite Loan Program, offering low-interest loans of up to $40,000 to help homeowners finance the addition of a secondary suite.
As part of the province's "Homes for People" action plan, the legalization of all secondary suites has been mandated, removing previous restrictions in many municipalities.
A new "flipping tax" has been introduced, which significantly increases the capital gains taxes owed on the sale of properties with illegal secondary suites, incentivizing homeowners to legalize existing units.
The provincial government has worked with municipalities to update zoning bylaws, allowing for increased density and the construction of secondary suites in more residential areas.
Data from the first year of the SSIP shows that over 1,000 new affordable rental units have been created across the province through the program.
The SSIP has been particularly successful in suburban and rural areas, where the program has helped to increase the supply of rental housing options.
Homeowners applying for SSIP funding must meet certain criteria, including proof of ownership, proper zoning, and compliance with building codes and safety standards.
The program's application process has been streamlined, with homeowners able to submit their proposals entirely online through the BC Housing website.
To help offset the costs of creating a secondary suite, the provincial government offers additional incentives, such as property tax exemptions and fee waivers in some municipalities.
Monitoring and enforcement of the SSIP have been strengthened, with random inspections and penalties for homeowners who do not adhere to the program's rental rate requirements.
The success of the SSIP has led to discussions about expanding the program further, potentially offering support for the conversion of underutilized spaces, such as garages and basements, into additional rental units.