The program, which is one of several initiatives the region is creating to address the chronic shortage of affordable rental units in Peel, is currently funded to create 57 new affordable units in Peel each year while making homeownership more affordable for loan recipients. Optimizing existing housing stock in the community is one of five strategies to address housing affordability in the region’s long-term Peel Housing and Homelessness Plan.
The My Home Second Unit Renovation program provides up to $30,000 in forgivable, interest-free loans to homeowners who want to upgrade existing second units and rent them out at affordable rates.
Up to $20,000 in interest-free, forgivable loans are available for eligible homeowners with an existing second unit. The loan supports renovations and repairs needed to bring their unit in compliance with the Ontario Building Code. Recipients must register the renovated unit with their municipality and rent it out at an affordable rate to have the loan forgiven.
To obtain the forgivable loan for the My Home Second Unit Renovation Program, approved applicants must:
♦ Register the loan amount on the title of their property for the 10-year loan forgiveness period;
♦ Register a mortgage on title in the second priority;
♦ Program participants will not be accepted where the Region would be in third, fourth or lower positions on the title registration;
♦ To receive up to $20,000, you must:
♦ 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 per Canada Mortgage and Housing (CMHC) market report,
♦ Complete the 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,
♦ Not have debt on your home that exceeds the Municipal Property Assessment (MPAC) value for your home,
♦ Have an assessed home value that falls within the 90th percentile of your municipality; and
♦ 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.
The Region of Peel will conduct a financial assessment of the homeowner’s current registration on Title to ensure the home is not over-encumbered based upon the MPAC assessed value.
More information is available at: peelregion.ca/housing/second-unit-renovation-program.asp.