I hope you are doing great
so guys, today we will talk about a program in Peel city
which is called My Home Second Unit
In this program, if your basement is not legal
to make it legal, government gives you a forgivable loan for renovating it
which means you do not have to return the money to the government , based on some requirements
So let's talk about that today
Legal basement should be legally licensed and registered with your local municipality
It should meet building permits and local fire inspections
As mentioned in my old videos, that basement units can be rented out here
In this pilot program, if your basement is not legal
Govt. give you a load to renovate it into a legal basement
The basement should be an existing basement
It should have a self contained kitchen, sleeping area and a bathroom
This program does not apply to new basements
Only applies to existing basements that you want to renovate and make it legal
There are some requirements to qualify for this program
First requirement is to have an existing basement in the house
that you want to renovate and make it legal
Second is that you should be living in that house,
i.e. you are living in the main and upper floor and have a lower level basement that you want to renovate
Third condition is that your household income should be less that CAD 110,000
Fourth is, the tenant's household income should be around CAD 61000 or less.
Another point, your debt should be less than Municipal Property Assessment(MPAC) of your house
So your combined debt( this interest free loan under this program+house mortgage loan)
should be less that the MPAC value of your house
Now let's talk about things allowed under this program, if you qualify
First thing, City provides you with a forgivable loan
which is interest free and is added to your mortgage loan at second position
In this, if within the 10 years of using this forgivable loan,
you rent out your basement at an affordable rate
Then this loan is forgiven and removed from your mortgage
But, if within these 10 years, you sell your property
Then you have to repay this loan to the city
When talking about affordable rate for rental,
you have to check with the municipality on their website
You can find this information on Peel region website
that the tenancy rental rate should be around 80% of the average rental rate setup by Peel region
Now talking about this interest free load,
Government gives you a loan of CAD 20,000 if the tenant is of your choice
And if you get a tenant as per the local Municipality's choice
then you can qualify for an interest free loan of CAD 30,000
Also to meet these requirements,
all your leasing agreements of the existing basement
and if any rental receipts ,
for renovated unit, you have to provide them to the municipality .
In this program, region provides you with many other services as well
like landlord and tenant mediation,
unit inspections,
helps if any rent arrears are happening etc
Now lets talk about applying for this loan if you qualify
To apply for it, first you need an architectural drawing and a building permit
Then you need to contact your municipality's program coordinator
Then if your application qualifies, the property owner will be contacted
After that , your application will be reviewed
And if you qualify, they will start the process
For any information regarding this program,
you can go on to Peel region's website. Link is in description box
So if you feel you qualify, you can still check the application and process on Peel city's website
This is the info I wanted to share with you all
Hope this help you or your known ones, so please share with your friends