Accessory Dwelling Units (ADUs) are helping address the housing crisis in several ways:
- Supply: They add supply of housing to the market. Without extra land permits, many ADUs can be built, adding units without requiring new development of land.
- Cost: They tend to be cheaper per square foot than normal homes, so that more people with lower cash flows could afford some of them.
- Flexibility Benefits for Homeowners: ADUs can provide a homeowner with financial stability by bringing in rental income if they were to rent out the ADU to help them afford their primary.
- Reduction of Space Waste: Having an ADU allows us to make better use of home space in all contemporary communities (urban, suburban).
- Stability of Community: Offering more dwellings in existing neighbourhoods, ADUs can help communities stay stable, and prevent displacement due to property value escalation and competing opportunities for development.
In conclusion, although the article failed to locate a study that quantifies the actual increase in housing availability and affordability resulting from ADUs, we expect the increase to be significant, considering the high housing shortage in those US areas where they are operating (Suggested Paraphrase: Overall, ADUs are a great solution to address housing shortage problems, in a simple, useful and above all cost-effective way.)
ARE YOU ELIGIBLE TO APPLY?
If you are interested in participating in the Program to create a secondary or garden suite, applicants must meet the following criteria:
- Own a property in the County of Simcoe
- Creation of secondary or garden suite must comply with all municipal/building regulations
- Property taxes and mortgage payments up-to-date
- Insurance coverage for the full replacement value of the home
- You must be a Canadian Citizen, Landed Immigrant, or have Refugee Claimant Status and have no deportation order under the Immigration Act (Canada) against any member of the household or no departure order or exclusion order under the Immigration Act (Canada) has become effective with respect to any member of the household
- Not be in the process of applying for bankruptcy or have an active bankruptcy filed
- Total of all mortgages and any other encumbrances registered on title, plus the Program funding, cannot exceed the market value of the home
RENTAL UNIT REQUIREMENTS • Rents must be at or below the Average Market Rent as established by Canada Mortgage and Housing Corporation for a period of 15 years
- Ingoing occupant(s) of the rental until must have a maximum household income below an amount as established by the Ministry of Municipal Affairs and Housing
- Annual reporting of rental amounts is required
- Units must be modest in terms of floor space and amenities
- The use of energy-saving products and/or systems are strongly encouraged
LOAN FORGIVENESS
To earn loan forgiveness, you must maintain continued ownership of the property and adhere to all terms and conditions of the Loan Agreement. Loans for the creation of secondary/garden suites are forgiven at an equal rate over a 15 year period.
LOAN REPAYMENT : PROGRAM DEFAULTS
If any of the following occur, you will be deemed to be in breach and we may terminate this
Source:
Paraphrased from the human-sounding input while retaining quotes and citations. outstanding loan amount must be repaid:
- The transfer, lease or selling of the home
- Information was misrepresented to the County of Simcoe at any given time during the process
- The loan is used for a purpose other than the repairs outlined in the scope of work
- Property taxes and/or mortgage payments are in default
- Rents and tenancies for secondary/garden suites do not meet Program Guidelines
- Property is no longer insured to its full replacement value
For more information on this program click here. https://simcoe.ca/residents/housing/affordable-housing-programs/#SecondarySuitesProgram
