Government’s Programs for You to Use to Save Money and Fix Your House

Programs and Financial Assistance in Canada

In September 2008, the Government of Canada announced $1.9 billion, over five years, for housing and homelessness programs for low-income Canadians. As part of this investment, the renovations programs were extended for two years, until March 31, 2011. In July 2011, the federal, provincial and territorial ministers responsible for housing announced they are committing a combined $1.4 billion toward reducing the number of Canadians in housing need under the new Affordable Housing Framework 2011-14.

Under this Framework, provinces and territories may choose to use funding to design and deliver new programs or to maintain existing delivery arrangements for the Renovation Programs off-reserve and the Affordable Housing Initiative (AHI). Federal, provincial and territorial governments will continue to finalize and announce bilateral agreements. In the interim, CMHC is continuing to accept applications where CMHC has delivered the renovation programs off-reserve.

One of this programs is the Homeowner Residential Rehabilitation Assistance Program — Homeowner RRAP Canada Mortgage and Housing Corporation (CMHC) offers financial assistance to low-income homeowners for mandatory home repairs that will preserve the quality of affordable housing. The program helps people who live in substandard dwellings and cannot afford to pay for necessary repairs to their home.

Who Can Apply?

Homeowners may qualify for assistance if your property is eligible and if your total household income is at or below the Income Threshold set by CMHC.

Eligible Properties

Your property may be eligible for Homeowner RRAP if your home is:

valued below a certain amount;
at least five years old; and
substandard and needs major repairs in one of the following areas: heating, structural, electrical, plumbing and fire safety.

Your home may also qualify if work is needed to help reduce overcrowding.

Eligible Repairs

In general, mandatory repairs related to heating, structural, electrical, plumbing and fire safety are eligible for funding under Homeowner RRAP. The quality of the repairs should ensure the useful life of your home for at least 15 years.
All work required addressing needed repairs to the structure and systems must be completed in order to receive RRAP assistance.
If the cost of mandatory repairs is more than the maximum forgivable loan available, you, as the owner, will be required to cover the additional cost.
Any repairs carried out before the Homeowner RRAP loan is approved in writing are not eligible.

Financial Assistance

Assistance is in the form of a fully forgivable loan. The loan does not have to be repaid if you agree to continue to own and live in this house during the earning period, which could be up to five years (the loan forgiveness period). The amount you could receive is based on the cost of mandatory repairs and the area in which you live. The maximum amount you could receive varies according to the three geographic zones:

Zone / Maximum Loan-Unit