Welcome!

By registering with us, you'll be able to discuss, share and private message with other members of our community.

SignUp Now!

Edmonton-Secondary Suite Grant Program. Is it worth the hassle?

Allie

0
Registered
Joined
Jan 15, 2011
Messages
166
I could really use your opinion on what to make of all of this because I am about to start renovations right now.

Hello,

Just for reference, below is a list of steps for the program along with further information that you might find useful. If you have any other questions, feel free to contact me back at 780-442-6284.

Once zoning is permitted , if you are building a new suite, the next steps that you would need to take are to obtain a development permit, a building permit, ect. When you go to obtain these permits, they may request a floor plan to scale be created. Your more than welcome to complete the drawings yourself or to hire a drafts person to complete it for you. If you are to construct a garage suite, an engineer may be required to complete the plans for you as he/she will need to structurally engineer the concrete slab of the garage so it may then support a suite above.
Please include in the floor plans the exact window sizes, door spaces, floor spaces , ect. Also indicate where the heating system is, be it either a 2nd furnace or in floor heating, as a separate heating system is required within a new secondary suite. Once the permit is obtained you can then contact me at 780-442-6284 to set up a time to come into the office to fill out an application for the grant.

If you are upgrading an existing suite, the first step is to contact me to set up an inspection of the property, where our full team will then go over everything that may be required to bring the suite up to the Program Standards as well as the Fire Code Standata. During the inspection a letter will be presented stating that an inspection took place that day which verified that an existing secondary suite was present. After the inspection a specification report will be prepared. This report will then be submitted to you which lists which deficiencies must be completed before the final payment can be released. The letter and the specification report is to be presented when applying for a Development Permit for an Existing Secondary Suite. Once the Development Permit is obtained you can then contact the secondary suite coordinator at 780-442-6284 to set up a time to fill out the application form for the grant.

Also note that the existing regulations restrict the number of suites within any single detached dwelling to one of either a garage suite or secondary suite.

To obtain permits you must go to:

Planning & Development Department
5th Floor, HSBC Building
10250 - 101 Street
Edmonton, AB, T5J 3P4
Phone: (780) 496-3100
Fax: (780) 496-6054

Or print the form (for a Development Permit) from the online link and submit either by fax, mail, or in person to the address above.

http://www.edmonton.ca/bylaws_licences/Per...008%20Juneb.pdf

If calling the above number (780-496-3100), it is a general number, so specifically ask for a development technical advisor who can answer any questions on permits, height restrictions, size requirement, ect.


When coming in to sign the application form for the grant I will require copies of the permits that you acquired and also some other documentation such as:

- copy of development permit
- copy of building permit
- copy of approved/stamped floor plans if required for permits
- copy of current land title or proof of purchase
- copy of current property tax notice /assessment
- proof of insurance coverage
- 2 estimates for the work required
- letter from a lending institution (bank), line of credit or a statement confirming availability of 25% of the total cost of work

Please note: The above listed documentation, besides a copy of the permits, can be submitted after the signing of the application form. However, approval may not be granted until all documentation is obtained as well as in initial inspection from our Safety Codes Officer (SCO). The inspection will take place shortly after the application for the grant has been filled out. If you are constructing a new suite, the inspection will be to check the structural integrity to see if the building can support a secondary suite.
If you are upgrading an existing suite, an inspection will then take place from members of our team which include our SCO as well as a Fire Inspector. A specification report will then be sent out to you shortly afterwards listing what deficiencies need to be complied with to bring the suite up to the Alberta Building Code as well as the Fire Code Standata. This inspection as noted in paragraph three will take place first.


Further information about Secondary Suites can be found at our web site:

http://www.edmonton.ca/for_residents/resid...rnerstones.aspx

If you scroll down there will be 3 PDF files which are information guides on our programs. The information guides are found in this order:
1. New/New - If you are building a new house and a basement suite at the same time off the lot.
2. New/Existing - If you are building a new basement suite or garage suite in an existing structure.
3. Existing/Existing - If you are upgrading an existing suite to bring it up to the Alberta Building Code.


Also we have another website at

http://www.edmonton.ca/for_residents/resid...ary-suites.aspx

A link to the Fire Code Standata for Secondary Suites:

http://www.municipalaffairs.gov.ab.ca/docu...cb/97FCB031.pdf



Please note that you may be eligible to receive funding up to $24,000.00. This funding is provided once the job is completed.
There is the option of a progress payment of 50% of the grant funding that you are eligible to receive. This is only provided to you once 50% of the grant funded work is completed as well as proof in the form of receipts are received verifying 25% of the total costs have been paid.
Also note that all other necessary permits must be obtained (i.e., plumbing, heating & electrical) with a final inspection to the specific area of the permit before any funding may be release as well as the completion of an Operating Agreement.

Example:

$32,000 - Quote of total costs
$8,000 - 25% of total costs

$16,000 - 50% of total costs
$8,000 -

$12,000 - 50% Progress payment
$12,000 - Remainder 50% grant payment once project completed


With all that being said, I look forward to your call once all documentation is in place or if you have additional questions.

Valerie Ball
Secondary Suites Coordinator
The City of Edmonton
Housing Services
Phone (780)442-6284
Fax (780)496-1150
Edmonton is the proud host of the 2009 ICLEI World Congress - a conference on advancing local environment initiatives.
Visit: www.iclei.org/worldcongress2009
 

seanverret

0
Registered
Joined
Sep 14, 2007
Messages
298
QUOTE (MatzoB @ Mar 23 2009, 06:42 PM)
I could really use your opinion on what to make of all of this because I am about to start renovations right now.




If you want a legal secondary suite that the city will pay 75% of the cost for then YES it's worth the hassle. Valerie is an excellent person to get information from and has been outstanding in our dealings with her.



I posted on this topic a while back



http://myreinspace.com/rein_members_only/Members-Only_Discussion/81-8729-Edmonton_Secondary_Suites_-_How_to_get_the_city_to_pay_for_them.html



For more information feel free to email or PM me.
 

margaretcowan

0
REIN Member
Joined
Feb 22, 2008
Messages
469
To get the grant, you have to agree to charge rent that is 85% of CMHC`s average rent for five years. Plus there are criteria, which I don`t recall now but that on the City of Edmonton website in the secondary suite section, for tenants you can rent to. Their income can`t exceed a certain figure since the grant initiative is to increase the supply of affordable housing.

These are factors that weigh on your decision to go or not go for the grant.

Margaret
 

seanverret

0
Registered
Joined
Sep 14, 2007
Messages
298
QUOTE (margaretcowan @ Mar 24 2009, 11:27 AM) To get the grant, you have to agree to charge rent that is 85% of CMHC`s average rent for five years. Plus there are criteria, which I don`t recall now but that on the City of Edmonton website in the secondary suite section, for tenants you can rent to. Their income can`t exceed a certain figure since the grant initiative is to increase the supply of affordable housing.

You are correct, but remember it is a basement suite of a house, which if not legal could have your rent reduced to zero if the city tighten`s its stance on non-legal suites. I see the entire scenario as win-win for everyone. I`m getting the upgrades to my suite paid for 75% by the city, I`m guranteed a legal secondary suite which increases my ability to sell in the future and the city gets affordable housing for people who need it. We`re close to the University and that`s who we provide for anyways... On top of that, we`re turning a 1 bedroom suite that had a spare bedroom outside of the suite into a 2 bedroom suite and so the rent we`re getting now will still be under the 85% that we will be able to legally charge later... Remember CMHC dictates what the average 2 bedroom rent is (around $1050 for 2008 if I remember right) so I can charge nearly $900 plus utilities on top of the rent that we will be getting upstairs when we move out. All of this with the peace of mind that the city will never close us down. And the city has helped our exit strategy with a fully legal suite under their rules... It`s all win-win in my mind.....
 

Allie

0
Registered
Joined
Jan 15, 2011
Messages
166
From what I understand, duplexes are exempt from the grant. I am not sure if I interpreted the documents correctly. Here is the table that I received. I understand there is a maximum on $25K on the grant too, for each property.

2008
Maximum Income Thresholds by Household Size (MIT), 2009
Maximum Income Thresholds by Household Size (MIT)
1 Person $26,489 1 Person $27,549
2 People $40,211 2 People $41,819
3 People $43,355 3 People $45,089
4 People $51,894 4 People $53,970
5 People $54,500 5 People $56,680
6+ People $50,235 6+ People $52,244


2008 Average Market Rents (AMR) 85% of AMR
Bachelor $ 707 $ 601
1 Bedroom $ 848 $ 721
2 Bedroom $ 1,038 $ 882
3+ Bedroom $ 1,175 $ 999
 

greghead

0
REIN Member
Joined
Sep 3, 2007
Messages
58
QUOTE (seanverret @ Mar 24 2009, 11:57 AM) You are correct, but remember it is a basement suite of a house, which if not legal could have your rent reduced to zero if the city tighten`s its stance on non-legal suites. I see the entire scenario as win-win for everyone. I`m getting the upgrades to my suite paid for 75% by the city, I`m guranteed a legal secondary suite which increases my ability to sell in the future and the city gets affordable housing for people who need it. We`re close to the University and that`s who we provide for anyways... On top of that, we`re turning a 1 bedroom suite that had a spare bedroom outside of the suite into a 2 bedroom suite and so the rent we`re getting now will still be under the 85% that we will be able to legally charge later... Remember CMHC dictates what the average 2 bedroom rent is (around $1050 for 2008 if I remember right) so I can charge nearly $900 plus utilities on top of the rent that we will be getting upstairs when we move out. All of this with the peace of mind that the city will never close us down. And the city has helped our exit strategy with a fully legal suite under their rules... It`s all win-win in my mind.....


I could not agree more Sean. This seems like a sweet deal for us investors given that we can get a currently non-conforming suite turned into a legal one. By removing the risk of getting shut down (which I know many investors who this has happened to) and the increased value when we sell after five years of having a legal suite, this will surely make up for any lost rental revenue over the 5 year period.

The question I have is, what is the current zoning requirements? Does the program apply for R1 zoned neighborhoods?
 

margaretcowan

0
REIN Member
Joined
Feb 22, 2008
Messages
469
I phoned the City of Edmonton zoning office today and gave them the zoning of properties I liked the look of for possible basement renovations. RF1 and RPL (planned lot residential) were the ones I asked about and they said were OK for legal suite development. Just phone with your zoning info and ask.

Of course, you can also pay for your own renovations, get the suite legalized through the City of Edmonton and avoid the affordable housing rental criteria. Any opinions on this option?

Margaret

QUOTE (greghead @ Mar 24 2009, 06:35 PM) I could not agree more Sean. This seems like a sweet deal for us investors given that we can get a currently non-conforming suite turned into a legal one. By removing the risk of getting shut down (which I know many investors who this has happened to) and the increased value when we sell after five years of having a legal suite, this will surely make up for any lost rental revenue over the 5 year period.

The question I have is, what is the current zoning requirements? Does the program apply for R1 zoned neighborhoods?
 

eskilover

0
Registered
Joined
Jun 8, 2008
Messages
5
I would agree with Sean. The city will pay up to $24,000 for you to upgrade your property and you increase your cash flow by $10,000 a year for your $8,000 investment (assuming a $32,000 cost). Your ROI on that is 125% in the first year! There is some hassle to get the grant, but that`s a pretty good return me thinks.
 

seanverret

0
Registered
Joined
Sep 14, 2007
Messages
298
We are at the stage where we are sending our proposal to the city to get approval. There has been no mention of "must be owner occupied" however that is the situation we are in. It`s been a long process and I`ll detail it all once it`s finally approved.
 
Top Bottom