How to Apply for the Secondary Suite Loan Program
The Secondary Suite Loan Program helps homeowners create secondary or garden suites with financial assistance. Here's a simplified guide to applying, using Simcoe County as an example:
Step 1: Understand the Program
This program provides a forgivable loan of up to $30,000 over 15 years to create secondary or garden suites. The funding is limited and given on a first-come, first-served basis, with priority for projects ready for construction.
- Construction must begin within 120 days of approval.
- Rent must remain affordable for 15 years.
- Projects must comply with the Ontario Building Code and local regulations.
Step 2: Check Your Eligibility
To qualify, you must meet these criteria:
- Own a property in Simcoe County.
- Be a Canadian citizen, permanent resident, or refugee.
- Have up-to-date property taxes, mortgage payments, and insurance.
- The total of all loans and liens on your property cannot exceed its market value.
- Comply with municipal and building codes.
Step 3: Eligible and Ineligible Projects
Eligible Projects
- Secondary or garden suites for affordable rentals.
- Accessibility upgrades like ramps and lifts (up to $5,000 as a grant).
- Costs for labor, materials, and legal services (up to $1,000).
Ineligible Projects
- Renovations started before approval.
- Cosmetic upgrades, landscaping, solar panels, or health equipment.
Step 4: Funding Details
- Maximum Loan: $30,000 per property.
- Loan Forgiveness: The loan amount decreases annually over 15 years if all conditions are met.
- Disbursement Stages: Funding is provided after passing inspections at these stages:
- Plumbing
- Framing and insulation
- Drywall and fireproofing
- Final inspection
Note: The loan amount decreases annually over 15 years. If all conditions are met, the loan is fully forgiven.
Step 5: Responsibilities as a Landlord
- Affordable Rent: Rent must remain at average market rates for 15 years and include utilities.
- Tenant Eligibility: Tenants must meet income requirements.
- Annual Reporting: Submit yearly reports on rental activities.
Step 6: Application steps
- Complete the Application Form: Include project details and all required documents, such as:
- Proof of property ownership.
- Insurance covering full property replacement.
- Confirmation of no outstanding taxes.
- Review Program Resources:
- Fact Sheet: Overview of eligibility, expenses, and responsibilities.
- FAQ: Answers about payment, tenant eligibility, and more.
- Application Package: Includes all necessary forms and documents.
- Schedule A: Rental rates and tenant income requirements.
- Submit Your Application:
- Send the completed application and supporting documents to:
- County of Simcoe
- Social Housing Department
- Attn: Secondary Suites Program
- 1110 Highway 26, Midhurst, ON L9X 1N6
- Email: iah@simcoe.ca
Step 7: Next Steps After Approval
- Begin Construction: Start within 120 days of approval.
- Inspections: Pass inspections at each stage to receive funding.
- Final Approval: After all inspections are complete, the unit will be registered.