What is the Calgary Secondary Suite Incentive Program?
If you're a homeowner in Calgary looking to add more value to your property or generate extra income, you might want to consider developing a secondary suite. This may include developing an unfinished basement or legalizing an existing suite that is not quite up to code. The City of Calgary has introduced the Secondary Suite Incentive Program to encourage homeowners to create legal secondary suites. But what exactly is this program, and how can it benefit you?
Difference between secondary and backyard suites.
Understanding Secondary Suites
Before diving into the specifics of the incentive program, it's important to understand what secondary suites are. Essentially, a secondary suite is a self-contained living space within a home.
This could be a basement suite, an attic conversion, or even an addition to the main house. These suites have their own kitchen, bathroom, and living area, making them ideal for rental purposes or accommodating family members. Please note that this incentive does not cover backyard or detached suites.
The Calgary Secondary Suite Incentive Program
The Calgary Secondary Suite Incentive Program is designed to help homeowners offset some of the costs associated with developing a legal secondary suite. The program provides financial rebates to homeowners who bring their suites up to code, ensuring safety and legality. This initiative not only helps homeowners but also increases the availability of affordable rental units in the city.
Eligibility Criteria
To qualify for the program, homeowners need to meet certain criteria:
Zoning Requirements: Your property must be in a zone that allows for secondary suites. This is crucial as not all areas in Calgary permit such developments.
Compliance with Building Codes: The suite must meet all current building codes and safety standards. This ensures that the living space is safe for tenants. People often ask, "Do I need a permit to develop my basement in Calgary?" Yes, you must have a building permit number before applying.
Application Approval: Homeowners must submit an application to the city and receive approval before beginning any construction or renovation work.
You must retain ownership of the property during the entire process.
Of course, Notorious Suites will handle all these details on your behalf.
Financial Incentives
The primary benefit of the program is the financial rebate. Homeowners can receive up to $10,000 to help cover the costs of developing and registering a secondary suite. This rebate can significantly reduce the financial burden of construction and make it more feasible for homeowners to pursue this development.
The incentive can be applied to the following areas:
Egress window(s) (to a maximum of) $1,500
Hardwired and interconnected smoke and carbon monoxide alarms (To a maximum of) $1,000
Protected exiting (to a maximum of) $1,000
Smoke tight barrier (to a maximum of) $4,000
Split heat/separate air (to a maximum of) $6,000
More information is available on the City of Calgary web site. Further, you might not know that the federal government has made it easier to borrow money for this purpose. You can use these funds to finish the renovations on your Calgary basement suite at a much lower interest rate.
Benefits of Developing a Secondary Suite
Developing a secondary suite comes with numerous benefits:
Increased Property Value
Adding a legal secondary suite can significantly increase the value (from 2 - 5% or more) of your home. Potential buyers often see this as an attractive feature, knowing they can generate rental income.
Additional Income
Renting out a secondary suite can provide a steady stream of income. This can be particularly beneficial for homeowners looking to offset mortgage costs or save for other investments. Rental rates rise even higher during seasons reflected by extremely volatile markets.
Housing Flexibility
Having a secondary suite offers flexibility. Whether you choose to rent it out, use it for family members, or even as a home office, the additional space can be a valuable asset.
Meeting Housing Demand
With the growing population in Calgary, there's an increasing demand for affordable, high quality housing. Secondary suites can help meet this demand by providing more rental options.
Mortgage Benefits
Informing your lending institution of your intent to create a secondary suite, may increase the total mortgage you are approved for.
Costs Involved in Developing a Secondary Suite
While the incentive program offers financial assistance, it's important to understand the costs involved in developing a secondary suite. The cost to develop a basement in Calgary or any other type of suite can vary depending on several factors:
Construction and Renovation Costs
The primary expenses will be the construction or renovation costs. This includes materials, labour, and any necessary permits. Working with experienced basement builders in Calgary, such as Notorious Suites, can help ensure that the project stays within budget and meets all necessary standards.
Permits and Fees
Obtaining the necessary permits is crucial for legal basement development. These permits ensure that the suite complies with local building codes and safety standards. The cost of permits can vary, so it's important to factor this into your overall budget. Depending on the work required, you may need to obtain separate gas, water, and electrical permits.
Additional Expenses
Other expenses might include utility upgrades, furnishings, and additional insurance costs. A comprehensive budget that accounts for all potential expenses is essential. Consider an online calculator to help clarify these costs.
As an additional incentive to encourage home renovations, you may also benefit from the CSSLP program. This federal program makes it easier for homeowners to convert an unused basement into a rental apartment by allowing up to $80,000 in low interest financing.
How to Apply for the Calgary Secondary Suite Incentive Program
If you're interested in taking advantage of the Calgary Secondary Suite Incentive Program, the application process is relatively straightforward:
Research and Planning: Start by researching zoning requirements and planning your suite's design. This is the stage where you should consult with professional basement builders in Calgary to understand the feasibility and cost implications.
Submit Application: Once you've planned your project, submit your application to the City of Calgary. Ensure you have all necessary documents and details ready for submission.
Await Approval: After submission, wait for approval from the city. This step may take some time, so it's important to be patient.
Begin Construction: Once approved, you can begin the construction or renovation of your secondary suite. Ensure all work complies with the approved plans and building codes. While renos can be mildly disruptive in the short term, professionals will ensure timely work that meets all national building code requirements.
Claim Your Rebate: After completing the project, you can apply for the rebate. Ensure you have all receipts and documentation ready to support your claim.
Conclusion
The Calgary Secondary Suite Incentive Program offers a fantastic opportunity for homeowners to enhance their property's value and generate additional income. Creating a legal secondary suite can help you earn money. It also helps the city with its housing needs.
Whether you're considering a basement suite or another type of secondary living space, this program can help make your development dreams a reality. Ensure you meet all eligibility criteria, understand the costs involved, and follow the application process to take full advantage of this beneficial program.
The experts at Notorious Suites are ready to answer any questions you may have. They would love to discuss your dreams and ideas, turning vision into reality.