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- Dec 16, 2008
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The City of Edmonton has initiated a grant program for landlords to create or upgrade secondary suites. The intent is to create more secondary suites, to bring existing suites up to code, and to ensure they are rented to people with below-median incomes. Up to $24,000 per suite is available. In turn, the landlord must rent to a qualified tenant (who signs a declaration of income.) The landlord must also keep the rent at 85% below median for five years and must keep the suite in the rental market for five years.
I do support the City’s initiative whole-heartedly! I think this is a great way to increase affordable housing without the City being the landlord. However, for professional landlords such as REIN members, I’ve come across a few concerns that, for me, make applying for such a grant unappealing at this time. Here are my reasons:
1. There is an unavoidable degree of bureaucracy with such a program. You must wait for the application and inspection processes to take place. For us, time is money. Professional landlords just want to swoop in and get their renos done and have the place rented by the first day of the next month. That won’t happen with this grant program.
2. If you do your own renovations (as we do) you are only partially compensated for your costs. You must provide two quotes to the City from other renovation companies.
3. The guidelines say a grant applicant must be an individual or group, a private non-profit housing corp or a housing co-op. “What if my houses are held in my corp.?” I asked. They don’t know the answer to that one, and will get back to me. (I have been burned before by a City grant program for flood victims. Because my rental house was owned by my corp I received no funds. Once bitten, twice shy.)
font-size:12pt;line-height:100%">4. I did the cost/benefit analysis of receiving the grant money and charging lower rent. The break-even point is about $9,000 in grant money. To do a small reno and receive a grant would be a financial loss for the landlord.
In summary, I think this program is best for homeowners who have a potential suite in their basement and to use such a grant would help them put a new suite into the rental market. Such a homeowner would likely not be as concerned with time-lines. I also highly recommend that the applicant do as much renos as possible, maximizing the grant money received. The rent reduction is the same, regardless of how much the grant is.
(The City is aware of my concerns and is discussing them. Perhaps we’ll see some improvements.)
To apply for a grant, call (780)496-6029. It’s called the Cornerstones Secondary Suites Grant Program.
Hope this helps!
Catherine Brooker, Edmonton
I do support the City’s initiative whole-heartedly! I think this is a great way to increase affordable housing without the City being the landlord. However, for professional landlords such as REIN members, I’ve come across a few concerns that, for me, make applying for such a grant unappealing at this time. Here are my reasons:
1. There is an unavoidable degree of bureaucracy with such a program. You must wait for the application and inspection processes to take place. For us, time is money. Professional landlords just want to swoop in and get their renos done and have the place rented by the first day of the next month. That won’t happen with this grant program.
2. If you do your own renovations (as we do) you are only partially compensated for your costs. You must provide two quotes to the City from other renovation companies.
3. The guidelines say a grant applicant must be an individual or group, a private non-profit housing corp or a housing co-op. “What if my houses are held in my corp.?” I asked. They don’t know the answer to that one, and will get back to me. (I have been burned before by a City grant program for flood victims. Because my rental house was owned by my corp I received no funds. Once bitten, twice shy.)
font-size:12pt;line-height:100%">4. I did the cost/benefit analysis of receiving the grant money and charging lower rent. The break-even point is about $9,000 in grant money. To do a small reno and receive a grant would be a financial loss for the landlord.
In summary, I think this program is best for homeowners who have a potential suite in their basement and to use such a grant would help them put a new suite into the rental market. Such a homeowner would likely not be as concerned with time-lines. I also highly recommend that the applicant do as much renos as possible, maximizing the grant money received. The rent reduction is the same, regardless of how much the grant is.
(The City is aware of my concerns and is discussing them. Perhaps we’ll see some improvements.)
To apply for a grant, call (780)496-6029. It’s called the Cornerstones Secondary Suites Grant Program.
Hope this helps!
Catherine Brooker, Edmonton
