Conversion Residential Rehabilitation Assistance Program

The Conversion Residential Rehabilitation Assistance Program (RRAP) Program provides assistance to convert non-residential properties into affordable self-contained rental housing units and/or bed units to be occupied by low income households. Funding is provided jointly by the Government of Canada (75%) and the Province of Nova Scotia (25%).

Eligibility

Eligible clients are private entrepreneurs, non-profit corporations, co-operatives, and Municipalities owning and converting non-residential properties to create affordable permanent accommodations. A landlord-tenant relationship must exist. Landlords renting to relatives are ineligible for assistance.

Eligible properties must be:

• five years or older
• a non-residential property;
• free of environmental hazards;
• adept to conversion to more than three bed-units or more than one self-contained unit that can be rented to occupants with income at or below the applicable levels. Newly created self contained units must have post RRAP rents at or below market rents established for the area;
• any newly created bed-units must have post RRAP rents equivalent to 60% of the market rents for a self-contained one bedroom established for the area.

Eligible Work
Only work related to the creation of eligible residential units and bed-units will be eligible for assistance. Work carried out prior to loan approval is not eligible.

Assistance
Assistance is in the form of a fully forgivable loan.

The maximum assistance per unit converted is $24,000 for self-contained units and $16,000 for bed-units.

The loan is forgivable over a period of up to fifteen years, depending on how much assistance per unit is received;

Security for the total amount of the loan will be in the form of a promissory note up to $25,000, and a forgivable recorded mortgage over $25,000;

Fire Insurance is mandatory;

Landlords must enter into an operating agreement which places a ceiling on the rents for the units covered by forgivable loans, and limits rent increases during the term of the agreement;

The landlord must also agree to limit new occupancy to low-income tenants.

Next steps

Contact the nearest Housing Services office of the Department of Community Services.