Good news for Homeowners living in the Region of Peel, Starting October 19, 2020 you can apply to qualify up to a $30,000 loan for your Legal Basement Apartment!
Region of Peel is launching a new and improved program to help eligible homeowners renovate their existing second unit in their home to create more affordable rental housing in the Region of Peel.
Through My Home Second Unit Renovation Program you can receive 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.
What is a Forgivable Loan:
These 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 second position on the title to your home for 10 years, after which time it will be removed.
Eligible second units
To be eligible for the program, the non-registered second unit must:
- Already exist in the home you live in such as a Basement (finished or not finished)
- 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 in a home.
How to Qualify for $20,000:
- 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.
- 1Not have debt on your home that exceeds the Municipal Property Assessment (MPAC) value for your home.
- 2Have an assessed home value that falls within the 90th percentile of your municipality.
1Debt on your home cannot exceed MPAC assessed value
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. Debt includes:
- Your mortgage
- The forgivable loan from the Region of Peel
- Any other mortgages or debts that are registered against your home
2Your 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. The eligible home assessment values by municipality are:
Type of home
Rent at an affordable rental rate
You must rent your registered second unit at an affordable rental rate for a period of 10 years (80% of average local municipal market rent – as per CHMC market report), as follows:
Affordable rental rates you can charge for 2020:
Eligibility for up to a $30,000 loan
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 to occupy your second unit and helps you gain access to services and supports through Region of Peel Housing Services.
Lease myProperty At Your Service!
We know how all this information can be overwhelming but rest assure that the team at Lease myProperty is very knowledgeable and will guide you from start to finish, give us a call today 416-820-7551 or email us at email@example.com and let us help you build your dream Basement Apartment so you can get the most for your investment.
In addition, you may contact the Region of Peel directly, contact us at 905-791-7800, ext. 8032 or email at firstname.lastname@example.org.