Published May 5, 2024

$40,000 in Forgivable Loans to Homeowners

Written by Assist 2 Sell, HomeWorks Realty

The government has increased the loan threshold to $40K from $25K

About six months after the launch of a program intended to encourage people to build backyard suites, which saw minimal uptake, the Nova Scotia government has made significant changes with the hope of generating more interest in the program and hopefully helping with he housing crises we are seeing here in Nova Scotia.

The NS government launched the Backyard Suite Loan Program six months ago, but Nova Scotians showed little interest. As a result, the program has been changed to attract more interest.

The government has increased the loan to $40,000 from the previous $25,000 and expanded the eligibility requirements to access these forgivable loans with the hope of generating more interest in the program and hopefully helping with the housing crises we are seeing here in Nova Scotia.

When it was announced in October, people living in the backyard or secondary suites had to be below the household income limits for their area, an adult child of a senior homeowner, or the parent of one of the homeowners older than 65 years old. Now, in a move to foster inclusivity and accommodate diverse family structures, the government has expanded the eligibility for who can live in and build the units. This includes family members with disabilities, parents, grandchildren, siblings, aunts and uncles, and nieces and nephews. Previously, only parents and step-parents at least 65 years old and adult children and stepchildren of senior homeowners were eligible to live in the units, as well as anyone who was below the

The program also applies to suites for those with disabilities, ensuring that everyone has a fair chance to benefit from this program.

Why Add a Secondary Suite to Your Home?

Nova Scotia is partnering with homeowners to combat the ongoing housing crisis in the province with a newly announced incentive program.

Eligibility

You can apply for the loan if you:

are the registered owner(s) of the property
live on the property as your primary home
have up-to-date property taxes
are a resident of Nova Scotia (and a Canadian Citizen or hold Permanent Resident status)
have money available to pay for the construction of the suite up front

To have the loan forgiven, the tenant and the homeowner must meet one of the following situations where the tenant is:

a family member and is 65 years of age or older OR is a person living with a disability (supportive housing)
a family member and the homeowner is 65 years of age or older OR a person living with a disability (supportive housing)
an individual or household whose income is below income limits and to whom the unit will be rented below average market rates (affordable housing)
A family member may be a mother, father, daughter, son, sibling, uncle, aunt, niece, nephew, or adult grandchild or similar related by marriage (i.e., stepmother etc).

What are secondary and backyard suites?

While they go by a variety of monikers—granny suites, in-law suites, accessory suites, secondary units, basement apartments—they all have the same elements: a private bathroom kitchen, and living and sleeping areas; and they must have a separate entrance.

Secondary suites are private, self-contained units, but they can share a number of features with the rest of the house such as a yard, parking area, laundry and storage space, and sometimes a hallway. They are completely contained within a home. They are often referred to as in-law suites or basement apartments.

Backyard suites, are separate free-standing buildings, either built overtop an accessory structure like a garage, or simply on their own. They are often referred to as granny suites, carriage flats and could be in the form of a tiny house.

Secondary and Backyard suites can be used by aging parents or adult children or can be used as rental units for the general public

Secondary suites come with more benefits than drawbacks, despite the stigma that were once attached to them.

While the main arguments against secondary suites are that they add to parking problems and increase neighbourhood density (causing problems with things such as schools, social programs, and transit), research has shown that this isn’t actually the case. In fact, the opposite has been shown to be true.

Interested in developing a secondary or backyard suite? Please visit halifax.ca or call 311 for more information regarding applying for a construction permit.

Things to consider before you build a secondary suite

Before building an Accessory Dwelling Unit (ADU) or Secondary Suite in the Halifax Dartmouth Area of Nova Scotia, Canada, there are several factors to consider. Here are four key factors to keep in mind:

Local Regulations

Cost

ROI

Location

Read more about the things to consider before you build a secondary suite in our blog:

https://www.homeworksrealty.ca/blog/before_you_build_a_secondary_suite/55179