The Secondary Suite Incentive Program (SSIP) is transforming communities by empowering homeowners to create affordable rental housing. With financial assistance in the form of a forgivable loan, this innovative program helps property owners add secondary suites to their homes—and offers renters access to below-market housing options. Here’s your comprehensive guide to the program, eligibility, application process, and benefits.
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Table of Contents
What is the Secondary Suite Incentive Program (SSIP)?
The SSIP provides financial support to homeowners to create new secondary suites on their properties. These suites must be rented at rates below market value, set by BC Housing. Eligible homeowners can receive up to 50% of renovation costs, with a maximum rebate of $40,000, issued as a forgivable loan. If program terms are met, this loan does not need to be repaid.
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Key Program Highlights
- Maximum Loan Amount: Up to $40,000 (50% of renovation costs).
- Forgivable Loan: Loan forgiveness occurs over five years at 20% per year, provided terms are met.
- Eligibility Period: Building permits issued on or after April 1, 2023.
- First Come, First Served: Applications are accepted until annual funding is exhausted.
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Eligibility Criteria
For Homeowners:
- Must be registered property owners.
- Must be Canadian citizens or permanent residents.
- Must live in the property as their primary residence.
- Combined gross annual income of all owners must be less than $209,420 (as per the previous tax year).
For Properties:
- Must be zoned for secondary suites (verify with your municipality).
- Secondary suites can include basement suites, garden suites, or laneway homes.
- The property must remain the homeowner’s principal residence.
For Secondary Suites:
- Must be a self-contained unit with essential facilities (e.g., kitchen, sleeping area, access to mail).
- Rent must be below market rates, as determined annually by BC Housing.
- Tenant cannot be an immediate family member (spouse, parent, child, or sibling).
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How the Forgivable Loan Works
The loan is registered on the property’s title and forgiven over five years:
| Year | Forgiven Amount | Loan Remaining |
|---|---|---|
| Upon Approval | $0 | $42,000 (loan + $2,000 legal fees) |
| After Year 1 | $8,400 (20%) | $33,600 |
| After Year 2 | Additional $8,400 | $25,200 |
| After Year 3 | Additional $8,400 | $16,800 |
| After Year 4 | Additional $8,400 | $8,400 |
| After Year 5 | Final $8,400 | $0 |
- Interest: Accrues at the Royal Bank of Canada’s prime rate plus 2%, but forgiven annually along with the principal.
- Terms: If program conditions are not met, the loan and interest become payable.
Eligible Costs for Rebates
The rebate covers construction and design costs directly related to creating a secondary suite, including:
- Architectural and design fees.
- Structural modifications and electrical work.
- Fixtures, appliances (50% of cost up to $2,500), and materials.
- Building permits, trade certifications, and contractor labor.
Excluded Costs: Landscaping, tools, or labor by the homeowner.
How to Apply
Step 1: Plan Your Project
- Confirm zoning allows for secondary suites.
- Arrange financing and contractor quotes.
- Apply for necessary building permits (must be dated April 1, 2023, or later).
Step 2: Submit Your Application
- Use the SSIP online portal.
- Provide proof of residence, income, building permits, and estimated construction costs.
Step 3: Complete Construction
- Build your secondary suite according to approved plans.
- Obtain an occupancy permit and submit proof of costs to receive the rebate.
Step 4: Rent Out Your Suite
- Rent the unit at below-market rates for at least five years.
- Maintain compliance with the Residential Tenancy Act.
What Happens After the Five-Year Period?
Once the loan is fully forgiven, homeowners can set market rents for new tenants, provided they comply with the Residential Tenancy Act.
Frequently Asked Questions
Can I apply if I’ve already built a suite?
Only projects with building permits issued on or after April 1, 2023, are eligible.
Are laneway homes eligible?
Yes, laneway homes or garden suites qualify as long as they remain on the same title as the primary residence.
What happens if I sell the property or fail to meet program terms?
If program terms are not met, the remaining loan balance and accrued interest must be repaid.
Why Choose the Secondary Suite Incentive Program?
The SSIP is an incredible opportunity to:
- Support affordable housing in your community.
- Increase the value and utility of your property.
- Benefit from financial support for renovations.
Act now—funding is limited, and applications are processed on a first-come, first-served basis. Ready to apply? Visit the SSIP Portal to start your application today.
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