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Residential Rehabilitation Assistance Program
The Residential Rehabilitation Assistance Program (RRAP) is a federal government program that provides financial assistance to renovate or repair housing that needs to be brought up to basic health and safety standards, or to convert non-residential properties to affordable housing. Deferred maintenance, cosmetic replacements, improvements for resale and work carried out before a RRAP loan is approved are not eligible under this program.
RRAP provides funding under the following categories:
Each category has distinct eligibility criteria. In most cases, to be eligible, homeowner or tenants must be below the Core Need Income Threshold (CNIT), a limit set by the Canada Mortgage and Housing Corporation (CMHC), based on household size and area. Also, rents must be at or below the Median Market Rent (MMR) established by CMHC for the area. RRAP is coordinated by the CMHC. In Toronto, the City of Toronto administers RRAP on behalf of the CMHC.
Homeowners may apply if the value of their house is below a specific figure, and if their household income is below the CNIT.
Eligibility is limited to properties lacking basic facilities or in need of major structural, electrical, plumbing, heating or fire safety repairs.
Forgivable assistance is available only for mandatory repairs relating to health and safety and to extending the useful life of the property. Repayable assistance is available for other eligible repairs.
Maximum total loan for the Toronto area is $18,000 with a maximum forgivable component of $12,000.
Offers financial assistance to landlords of affordable rental housing to pay for mandatory repairs to self-contained units occupied by tenants with incomes below the CNIT.
Eligibility is limited to projects having pre and post RRAP rents at or below the MMR for the local area. In addition, the property must lack basic facilities or require major structural, electrical, plumbing, heating or fire safety repairs.
Eligible repairs are limited to mandatory repairs required to bring properties up to minimum levels of heath and safety. Once repaired, the property should have a further useful life of 15 years, assuming normal care and maintenance.
Assistance is in the form of a fully forgivable loan of up to 100% of the cost of mandatory repairs. Landlords must enter into an agreement that places a ceiling on the rents that may be charged after the repairs are completed, and limits rent increases during the term of the agreement. The landlord mus also agree to limit new occupancy to tenants with incomes below the CNIT.
In the Toronto area, the maximum assistance per unit is $18,000.
Offers assistance to owners of Rooming Houses with rents affordable to low-income individuals. Pre and post RRAP rents must be at or below 60% of the MMR for the area.
The property must lack basic facilities, or require major structural, electrical, plumbing, heating or fire safety repairs.
Once repaired, the property should have a further useful life of 15 years, assuming normal care and maintenance.
The assistance is in the form of a fully forgivable loan of up to 100% of the mandatory repairs.
In the Toronto area, the maximum assistance per bed unit is $12,000.
To be eligible, landlords must own and convert non-residential properties to create bona fide affordable permanent accommodation.
Limited to properties that are environmentally safe and can be feasibly converted to residential accommodation, which will be viable based on agreed upon post conversion rents. The applicant must be able to demonstrate that the appropriate residential zoning and building permits can be obtained.
Units must be occupied by tenants who have incomes at or below the CNIT. Pre and post RRAP rents must be at or below 60% of the MMR for the area. Assistance is in the form of a fully forgivable loan.
In the Toronto area, the maximum assistance is $18,000 for each self-contained rental unit.
Persons with Disabilities
Offers financial assistance to homeowners and landlords to undertake accessibility work to modify dwellings occupied or intended for occupancy by persons with disabilities.
Properties must meet minimum health and safety standards.
Homeowners map apply if the value of their property is below a specific figure, and if their household income is below the CNIT.
Landlords may apply for modifications to units occupied by tenants with incomes below the income threshold.
Modifications must be related to housing and be reasonably related to the disabled occupant's disability.
In the Toronto area, the maximum assistance is $18,000. For homeowners, the maximum forgivable component is $12,000. Landlords are eligible for 100% forgiveness, but must enter into an agreement that ensures the units remain affordable to tenants.
Greater Toronto Area MMR
|1 Bedroom ||$770|
|2 Bedrooms ||$905|
|3 Bedrooms ||$1,075|
|4 Bedrooms ||$1,270|
Greater Toronto Area CNIT
|1 Bedroom ||$31,000|
|2 Bedrooms ||$36,500|
|3 Bedrooms ||$43,500|
|4 Bedrooms ||$51,000|
Source: ©Toronto Real Estate Board (TREB). Re-Printed by permission on TaraRosen.com