Building More Housing that is Affordable

Please see our Frequently Asked Questions.

Five Point Plan

  1. Residential Rental Property Rebate
  2. Housing Development Loan Program
  3. Unlock Surplus Government Land and Buildings
  4. Homeownership Assistance Program
  5. Secondary and Basement Suite Incentive

Point One: Residential Rental Property Rebate

  1. Provincial HST rebate to match both the existing federal rebate and the recently announced federal enhanced rebate.
  2. 100 per cent rebate on provincial portion of the HST (10 per cent) for larger scale purpose-built rental projects:
    1. Minimum four private units (containing kitchen, bathroom and living area) or 10 private rooms with shared amenities;
    2. 90 per cent held for long-term rental.
  3. 36 per cent rebate on provincial portion of the HST (10 per cent) for purpose-built rental projects that do not qualify for the 100 per cent rebate.

Further information about the New Residential Rental Property rebate is available at GST/HST new residential rental property rebate – Canada.ca.

Point Two: Housing Development Loan Program

  1. Offers low-interest loans to eligible property developers to incentivize the construction of rental housing
  2. The Provincial Government will commit up to $50 million for the program by way of secured loans.
  3. Loan Details
    1. The fixed interest rate to be charged will be the Provincial Government’s cost of borrowing at the time of the loan agreement up to a total project cost of $6 million. For projects exceeding $6 million, the portion over $6 million will be charged the Bank of Canada Prime Rate.
    2. Loans will be amortized over 25 years.
    3. The loan will be interest payments only up to a 36-month maximum during construction until substantial completion (whichever occurs first).
    4. The loan cannot exceed 90 per cent of the property construction value.
  4. To qualify, new housing construction projects must pertain to purpose-built rental housing units (of four or more units), including modular homes or the conversion of non-residential buildings into rental housing units
  5. Program details will be updated once applications are made available, anticipated in Winter 2024.

More information on the Housing Development Loan program can be found here. Questions relating to the program can be directed to The Department of Industry, Energy and Technology through RHDLP@gov.nl.ca.

Point Three: Unlock Surplus Government Land and Buildings

  1. Provide surplus government land and buildings for construction or conversion to purpose-built rental housing, including modular construction.
  2. All provincially owned surplus land and buildings will be assessed for housing suitability.
  3. As land sites and properties are deemed suitable, they will be made available through an open process.
  4. Proposals submitted will be assessed against defined criteria, including project viability and sustainability, number of units and percentage of affordable units, and ability and timeline to deliver. Proposals will be ranked based on the project’s overall suitability. Program details will be updated once applications are made available.

More information on the development of land for rental housing can be found here.

Point Four: First-Time Homebuyers Program

  1. Provides a loan to first-time homebuyers with lower-to-moderate incomes who qualify for a mortgage to access the required down payment to purchase a home.
  2. In addition to the loan, a grant is available to assist with up to 50 per cent of total closing costs to a maximum of $1,500 to match the Federal First-Time Home Buyers’ Tax Credit.
  3. Targeting the first 150 qualified applicants.
  4. Applications opened on November 1, 2023 through the Newfoundland and Labrador Housing Corporation.
  5. Please see more information here (First-Time Homebuyers Program (FHP))

Please see applications and more information for the First-time Homebuyers Program here.

Point Five: Secondary and Basement Suite Initiative 

  1. Helps create affordable rental housing within the existing housing supply, for less than the cost to build a large-scale, multi-unit housing development.
  2. Financial support to turn a portion of a person’s primary residence into a suite for the long-term rental market.
  3. Homeowners will be able to access a five-year forgivable loan of 50 per cent of eligible renovation costs, to a maximum of $40,000.
  4. Number of units: 100 with program delivered through the Newfoundland and Labrador Housing Corporation.
  5. For the loan to be forgiven/earned:
    1. The homeowner must continue to live in the home, and
    2. The new suite must be rented at below market rates (to be established by NLHC) for at least five years
  6. The new suite must be a new legal-self contained unit with a kitchen and full bathroom. Improvements to existing rental units are not eligible)
  7. Examples of eligible costs:
    1. Architectural and design fees; structural modifications; electrical work; plumbing work; fixtures; building and trade permits; materials related to the approved construction; contractor labour.
  8. Examples of ineligible costs:
    1. Repair of existing rental units
    2. Labour costs for work completed by the homeowner.
  9. Interested homeowners are encouraged to review the local government zoning and planning bylaws.

Please see applications and more information for the Secondary and Basement Suite Incentive Program here.