Ontario Renovates Programs

• Labour costs related to creation of the secondary suite
• Applicable planning application fees (including but not limited to building permit fees), legal fees, inspection fees) and architectural drawing costs
• Costs related to demolition of Accessory Structures to a residential use for the purposes of creating a second unit.
• Costs related to repair/rehabilitation to an existing secondary suite to make it accessible
• Any other costs that the Service Manager deems reasonable

Costs related to obtaining minor variance or zoning by-law amendments may be eligible project costs under this program.

The key objective of the program is to increase the supply of affordable housing units in Hamilton, while creating an opportunity for homeowners to generate additional income. With that in mind, the following criteria will apply during the 15-year term of the agreement. The maximum allowable rent may not exceed the Average Market Rent (AMR), as surveyed annually by CMHC. Annual rent increases in accordance with the Residential Tenancies Act, 2006 (RTA) are allowed.

The Table below provides the maximum rent levels for the incoming tenants for the year 2024. Table below also provides the City of Hamilton’s Average Market Rent (AMR) for 2024.

City of Hamilton 2024 Average Market Rent (AMR)

Homeowners may select any tenant, as long as; (i) they have status in Canada; (ii) have gross household income* not exceeding $72,500, (the income limit under the program at move-in); (iii) do not own a property in Canada.

The maximum amount of funding for the creation of the suite is $50,000 and cannot exceed 75% of the costs of the project. An additional grant of $5,000 will be provided for Homeowners who intend to include accessibility modifications in the unit.

Funding for the development of the Secondary Suite under the Ontario Renovates Program is considered a ‘forgivable loan’ because it is reduced at an equal rate each year for the entire term of 15 years; and,

No payments are required and no interest is charged on the forgivable loan so long as the terms of the forgivable loan agreement are adhered to by the Homeowner(s).

Yes. Loans will be secured by the City of Hamilton through a mortgage registered on title signed by the Homeowner.

Accessibility modifications incorporated in the creation of the secondary unit up to $5,000 will be provided to the homeowner as a Grant and will not be secured through the Promissory note.

The Forgivable Loans are secured to ensure that the City of Hamilton receives notice when a home is sold.

It also ensures that the City of Hamilton is protected in the event of default.

Homeowners will be pre-approved to receive up to $50,000 for the creation of a Secondary Suite in their primary residence.  Upon completion of the project, the Homeowner will submit required documents listed below to receive the advance. The total amount provided in any case will not exceed $50,000:

• Copy of the Building Permit or a letter from the Chief Building Official (CBO).
• Clearance from the Building Inspector for completion of framing, plumbing and heating.
• Confirmation of initial and final ESA inspection.
• Copy of ESA certification.
• All paid invoices for all the work completed.
• Full Occupancy Permit.
• Signed Tenant Lease Agreement.
• A copy of a Tenant Income Declaration documents.
• Verification of adequate home insurance.
• Letter from an Occupational Therapist confirming that accessible modifications were completed. This is applicable to Homeowners who included accessibility modification in the project.

Note

• For any Homeowner using a contractor in the creation of the Secondary Suite, all invoices that demonstrate the actual cost injected into the development of the unit must be provided.
• For any homeowner completing the project themselves, they are required to keep all receipts for building materials, contractors, permits and other costs directly related to development of the Secondary Suite excluding your own labour costs.

The City of Hamilton will conduct an annual compliance review as per terms and conditions set out in the Loan Agreement.

• Yes, subject to the Homeowners risk. Being on the Program Waitlist doesn’t guarantee approval for funding from the City of Hamilton
• Only after you receive a letter from the City of Hamilton acknowledging you have been accepted into the program and have a signed a forgivable loan agreement will you become eligible for the loan.
• Considerations will be made for works commenced prior to receiving funding approval from the City of Hamilton. Homeowners will be required to provide proof that:
  • A City-issued building permit and related certifications were acquired;
  • ESA certifications for all electrical work completed was received;
  • In a case where a building permit is not required, the homeowner got confirmation from the CBO that the building permit was not required for the completion of the secondary suite; and;
  • all work completed passed all inspections.

To be eligible for the funding, your current total annual household income must not exceed $142,000 or less than 70^th percentile as defined and published annually by the Ministry of Municipal Housing and Affairs per Schedule G of COCHI-OPHI Program Guidelines, Appendix D: Maximum Household Income Level.

No. Ontario Priorities Housing Initiative (OPHI) which is the funding being used to support the Ontario Renovates Secondary Suites Program requires that the applicant only own one property and be owner occupied during the 15-year term.

No

No. Funding can only be used to create or legalize secondary suites within an existing single detached dwelling.

• Yes, construction or repairs must begin no later than 120 days after the Loan agreement has been signed by the homeowner and the City of Hamilton.
• You must have a signed agreement with the City of Hamilton by December 15, 2024
• The expectation is that the construction will be completed within six months of the execution of the loan agreement. Homeowner can request for an extension which can be granted at the discretion of the Service Manager.
• Unit must be occupied no later than 30 days from occupancy approval being granted by the City’s Building Department.

• Some repair work can be done by the homeowner; however only materials, not labour, would be eligible for reimbursement.
• All work requiring certification such as electrical work must receive ESA permit and clearance.
• All work done must be in conformity with a City of Hamilton issued Building Permit

• A licenced  contractor must be licensed to work in the City of Hamilton and have liability and Workplace Safety and Insurance Bureau (WSIB) insurance.
• Review the list of City of Hamilton licensed contractors
• You can request an updated list of contractors by emailing City’s licensing office at [email protected].

• Yes. You must possess a building permit or have a letter from the Chief Building Official (CBO) explicitly stating that you do not need a building permit.
• ESA certification is required to satisfy that all the electrical work completed comply to the Ontario Electrical Safety Board.
• In addition, homeowners must comply to the Building Code Act; Property Standards By-Law; all relevant City By-laws; The Electricity Act, 1998, so 1998.c.15, Schedule A and The Ontario Fire Code.
• Homeowners will be required to holdback payments to contractors in compliance with the Construction Act.

Any costs over and above the approved funding amount are the responsibility of the homeowner.

Within 30 days of issuance of occupancy permit by Building Department.

• The unit must be rented to a tenant with a maximum household income of $72,500 or less.
• The unit can be rented to family members who are not dependants of the homeowner.
• The homeowner selects the tenant(s) of their choice.

Rent charged must be affordable and cannot exceed the Average Market Rent (AMR) for the City of Hamilton. The AMR figures are provided in table below*:

*Table will be updated annually at the beginning of the month of October.

Contact [email protected] for updated maximum allowable rents.

No

You must ensure that the rent portion alone of your rental charges do not exceed the average Market Rent for the City.

Yes

No. You can use the Tenancy Agreement of your choice however, it must comply with the Residential Tenancies Act, 2006.

Review the Residential Tenancy Agreement

You are required to notify the City within 15days when the tenant vacates.

You have 60 days to fill the unit with a new tenant whose total annual household income should not exceed $72,500 and rent the unit at the average market rent amounts for the City of Hamilton.

You would have defaulted the terms of the Forgivable Loan Agreement.

The City would demand for a repayment, the outstanding balance of the loan together with accrued interest must be repaid to the City of Hamilton. While the outstanding balance remains unpaid, interest will continue to accrue.  Interest will continue to accrue on the outstanding balance and the accrued interest due at a variable rate of 2% per annum above the prime rate established by the Bank of Canada calculated and payable monthly, not in advance.

Yes, if all other eligibility requirements are met.

No. Program is limited to adding one SDU to an existing single detached dwelling.

No, it must be rented to a new tenant.

You can contact the Property Tax office by calling (905) 546-2489 or Contact MPAC by calling Toll Free 1-866-296-6722 or www.mpac.ca to request a copy of your MPAC Notice of Assessment.

Modifications to reduce physical barriers related to housing and reasonably related to the occupant’s disability. Examples include, but are not limited to: ramps, handrails, chair and bath lifts, height adjustments to countertops and cues for doorbells/fire alarms. Other modifications may be considered, with supporting documentation, at the discretion of the Service Manager.

Yes, but must be aligned to the eligible costs.

As part of the OPHI program funding requirements, tenant selection and income verification among others, are the responsibilities of the homeowner.

Yes, unless the funding you received for the Homeownership Down Payment Program was in excess of $25,000. Under Ontario Renovates, the maximum funding across the entire Service Manager’s area per unit is capped at $25,000.

Mandatory repairs relating to health and safety and to extending the useful life of the property qualify. It is important to keep in mind that this assistance is for basic mandatory repairs and not repairs to modernize or improve the appearance on the home.

Eligible repairs for Ontario Renovates may include the following activities:

• Repair / replacement required to remedy leaky roofs where deterioration is beyond practical repairs,
• fire safety items
• electrical defects
• repairs / replacement mandated by the local municipal Building Department;
• replacement of a furnace (or the home’s primary heat source) that has been flagged as obsolete and/or at the end of its useful life and/or beyond practical repair and/or has been tagged prohibiting use.
• Modifications to increase accessibility including:
  •  permanent installations of ramps,
  • handrails, chair and bath lifts,
  • height adjustments to countertops.
  • cues for doorbells/fire alarms.

Any work started prior to the registration of the Loan Agreement on title is not eligible for program funding.

Work must begin within 45 days of date the Loan Agreement is registered on title and be completed within 120 days of commencement.