Nova Scotia announces $8M loan program to encourage secondary suites

Nova Scotia is partnering with homeowners to combat the ongoing housing crisis in the province with a newly announced incentive program.

Nova Scotia is partnering with homeowners to combat the ongoing housing crisis in the province with a newly announced incentive program.

On Thursday, officials announced a secondary and backyard suite program that will provide up to $25,000 in forgivable loans to homeowners who build affordable secondary or backyard suites in their home or on their property. The pilot program is part of $8 million in funding over three years and is expected to add up to 300 additional units in that time.

Officials say for homeowners to qualify, they must provide housing for a maximum rental rate that is 80 per cent of the average rental rate for the area for a minimum of five years. They are also barred from making the new suites available for short-term rentals when their loan is active under the program.

Meanwhile, tenants must be at least one of the following:

Below the household income limit for the area.

A parent, 65-years of age or older, of the homeowners.

An adult child of a senior homeowner.

In order for homeowners to receive the loan, tenants must have incomes below a certain level.