B.C. to cancel secondary-suite incentive program
Bridget Stringer-Holden | CBC News | Posted: March 19, 2025 10:23 PM | Last Updated: March 20
Applications will stop being accepted after March 30
The B.C. government is cancelling a secondary-suite incentive program that it started in 2023 to entice homeowners to build additional units.
In a statement, the government blamed "uncertain financial times" for the decision, and said it won't be accepting any new applications after March 30.
It added that the federal government has committed to implementing a similar program, and that the province didn't want to duplicate efforts.
Using the money elsewhere
B.C. Housing Minister Ravi Kahlon told CBC News that they're reviewing everything through the lenses of "What do we need to do now?" and "What would be nice to do?"
He said ending the pilot program two years early will provide about $40 million that can now be used for other types of housing initiatives.
"That's a win-win for us," said Kahlon. "We still get to have the units come online through the federal program, but we can use these dollars to provide support for other types of rentals that we want to see."
Housing Ministry staff said over 200 forgivable loans have been approved or pre-approved as of March 2025, and less than 50 applications are undergoing a review process with B.C. Housing to determine whether the homeowners are eligible.
Qualified homeowners in the pilot would have received funding for the construction costs of a new suite to a maximum of $40,000 in the form of a forgivable loan. The federal government program, when it's launched, would allow for low-interest loans of up to $80,000.
Kahlon said the federal program allows for more money, more flexibility, and seems to be supported by all federal parties.
"I feel fairly confident that the program, no matter which party wins, will remain."
Insufficient funding to match housing prices
Bryn Davidson, the co-owner and lead designer at Vancouver-based custom home builder Lanefab Design Build, questioned whether the funding provides enough of an incentive for homeowners, though.
He said his business has never had a client ask about the provincial program and that he doesn't think the federal one, even with the higher funding cap, will be enough to offset the costs of building.
"It's possible if you were somewhere where construction costs were a lot lower, that maybe it would pencil out, but given everything else that's going on, it just doesn't feel like that compelling of a program."
Davidson said what people can get for $80,000 is no more than a basic garage — not a suite — unless someone does the work themselves with a basement that already has high ceilings.
Something like a laneway house, he said, is closer to $600,000.
And, Davidson added, if homeowners are building secondary suites for extended family, as he said they often are, then they have no hope of recuperating costs through rent.
Kahlon agreed that construction costs pose a challenge, particularly in places like Metro Vancouver. He said they have heard from residents in larger communities that the $40,000 offered provincially hasn't been enough, but added he hopes the federal funds will make a bigger difference.
The province said people who have started the application process for B.C.'s secondary-suite incentive program and who have all necessary permits and cost estimates will be able to submit their application until the end of the month.
Corrections:- In an interview with CBC News, B.C. Housing Minister Ravi Kahlon used a different number for the amount of applications that have been submitted and accepted. Ministry staff later provided an updated number, which is reflected in this version of the story. March 20, 2025 7:43 PM
- An earlier version of this story stated the government would take applications for its secondary-suite program until March 31. In fact, the deadline for applications is March 30. March 20, 2025 4:26 PM