Laneway Suites – New Housing Solutions for Torontonians
For many of Toronto’s residents struggling to find a place of their own, the general contracting and construction management firm, Milman Design Build, are here to provide you with the solution to all your housing troubles, thanks to the innovation of laneway suites. There is now a new and inventive way to accommodate the ever-growing population of Toronto with the Laneway Suites Initiative put forth by the city of Toronto. This initiative allows for the development of additional housing opportunities within the city limits while providing existing residents with the option to earn an additional income, all the while increasing the value of their property, especially with fancy home decor.
Like many Toronto homeowners, you are almost certainly interested in the opportunity to improve the value of your property. Although there are many different home renovations or Home Improvement projects you or a general contractor could do to increase your home’s value, very few allow for immediate benefits. However, by constructing a laneway suite on your property, you are creating new and affordable housing opportunities for potential residents, aiding in Toronto’s current housing crisis. Whether you decide to transform your existing garage or build an entirely new structure for your laneway suite, it’s a great way to make a passive income while also providing someone else with a home to call and make their own.
Laneway suites are a great option for Toronto homeowners who want to make an investment in their future that will increase the market value of your property while providing you with the opportunity to make a stable additional income by creating a rental unit on your property.
Laneway Suite Initiative Program:
To further encourage eligible property owners to develop secondary/laneway suites, the city of Toronto has launched two programs as part of the Laneway Suites Initiative. Those programs can be referred to as. The Development Charges (DC) Deferral Program for Ancillary Secondary Dwelling Units and The Affordable Laneway Suites Pilot Program. Each of these programs offer a means offinancial assistance to those eligible property owners interested in developing
a laneway suite on their property. This is to be carried out by way of a DC
deferral for eligible property owners developing a secondary dwelling until at
the rear yard of a property or in the form of a forgivable loan of up to
$50,000, depending on which program you apply and are found eligible for.
The Development Charges (DC) Deferral Program for Ancillary Secondary Dwelling Units:
Here we have provided you with some important information you should know about The Development Charges (DC) Deferral Program for Ancillary Secondary Dwelling Units before considering applying. With regards to The Development Charges (DC) Deferral Program for Ancillary Secondary Dwelling Units, its essential to understand that the DC would only be collected through the creation of a new lot (Plan of Subdivision, Plan of Condominium and Consent to Server) within 20 years of the issuance of the building permit. Furthermore, this program in specific was approved by Council in April of 2018. If you are interested in applying for this program as part of the Toronto Laneway Suite Initiative, it is recommended that you do not pay your development charges as the city will not be able to credit back the fee if you choose to do so and then you can use the same like you use your swiggy money.
Who Can Apply:
In accordance with The Development Charges (DC) Deferral Program for Ancillary Secondary Dwelling Units, there are certain limitations pertaining to who can and cannot apply for said program, those are as follows:
- Property must be located within an area permitted by By-laws 810-2018 and 1210-2019
- You must conform with the applicable zoning and other by-laws as determined by Toronto Building
- You must have applied for a building permit
- You must have entered into a Dc Deferral for Ancillary Secondary Dwelling Units Agreement with the City
The Affordable Laneway Suites Pilot Program:
In this section here, we have put together a summary of the most important information on The Affordable Laneway Suites Pilot Program, to take into consideration before applying for the initiative program. For starters, as you are aware this program specifically provides property owners who are eligible with additional funding in the form of a forgivable loan subject to a maximum of $50,000, towards the development of a laneway suite on your Toronto property. Although, this will be reduced if your property has previously received funding from the Residential rehabilitation Assistance program (RRAP) or Toronto Renovates Program for repairs. It is also important to note that the loan will be forgiven in 15 years from the date when the first tenant occupies the laneway suite. That being said, it states that the rent being charged by the property owner to the potential resident cannot exceed the City of Toronto Average Market Rent, by bedroom type at any time during the 15-affordability period, as reported annually by the Canada Mortgage and Housing Corporation. What is more, following the application and approval process, you must not start any work on site until you have received the confirmation letter that any and all funding has been approved. After which work must begin within 120 days from when you first received the confirmation letter in the mail. Additionally, a mortgage/charge is required to be registered on the title of your property in order to secure the loan. As such, you will need to obtain approval from the current mortgagee(s) to secure this mortgage/charge.
Who Can Apply:
In accordance with The Affordable Laneway Suites Pilot Program, there are a variety of eligibility restrictions pertaining to who can and cannot apply for said program, those are as follows:
- One must own a single-family home abutting a public lane and is located within the area permitted by By-laws 810-2018 and 1210-2019.
- One must conform with applicable zoning and other by-laws as determined by Toronto Building through a zoning certificate or building permit
- One must have applied for a building permit
- One must enter into an Affordable Laneway Suites Contribution Agreement with the City
- One must be approved for the Development Charges Deferral Program for Ancillary Secondary Dwelling Units
For more information on these specific Initiative Programs, please refer to the City of Toronto’s direct website pertaining to the Laneway Suites Initiative Program.
Lastly, if you or a family member residing in the city of Toronto is looking to create a laneway suite on your property, whether within your current garage or a brand-new structure, the pros at Milman Design Build offer all of the services you need to make it happen today! We will ensure that your new laneway suite follows all building regulations, is elegant, and provides optimal ROI. View some of our recent home renovation projects in our project gallery and find inspiration for your upcoming project.
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