B.C. government ends homeowners loan program due to "uncertain financial times" | Daily Hive

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The Government of British Columbia has ended a program that helped homeowners create new secondary suites for rental uses.

The pilot program called the Secondary Suite Incentive Program was announced in 2023 to provide about 3,000 homeowners with forgivable loans of up to $40,000 to create a new secondary suite or accessory dwelling unit on their property.

BC Housing announced on March 19 that the program would no longer accept applications after March 30, 2025, “due to uncertain financial times.

Example of a secondary suite in a basement. (Bob Zhong/Luxmore Realty)

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“As we face uncertain economic conditions and an unpredictable tariff situation with the United States, we’re making sure we deliver the best value for people,” said Ravi Kahlon, minister of housing and municipal affairs, in a statement.

“With the federal government committing to deliver a national secondary-suite program, we are ensuring that we are not duplicating programs so we can use those funds for other programs that give people more housing options.”

The Government of B.C.’s 2023 budget had set aside $91 million for the pilot program, which began in Spring 2024. However, there are numerous caveats for eligibility.

Homeowners must be living on the property as their primary home and have a combined gross annual income of all homeowners on the title of less than $220,060 in the previous tax year.

Moreover, they must agree to rent the secondary suite at below-market rates for at least five years, and the suite cannot be rented to an immediate family member.

Other eligibility requirements do not permit the use of recreational properties, nor can the property have an assessed value over $2.175 million for 2025, which is the BC homeowner grant threshold.

Real estate in Vancouver (romakoma/Shutterstock)

In 2024, the federal government announced the Canada Secondary Suite Loan Program, which will enable homeowners to access up to $80,000 in low-interest loans to add rental units to their homes.

Ottawa targeted an early 2025 launch for the program, saying that both of these measures will make it easier for Canadians to convert an unused basement into a rental apartment or a garage into a laneway home to increase density in communities.

Funds from the Secondary Suite Incentive Program will be reallocated to current and future BC Housing programs and services, including BC Builds.

With files from Kenneth Chan and Daily Hive staff