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British ColumbiaHousing Matters

Subsidies

BC Housing advances monthly subsidies to housing providers to cover the costs of operating affordable developments. The amount of the subsidy is based on the operating costs set out in the annual budget, less the total rents and housing charges collected from residents. Subsidy payments:

  • Include rent subsidies for Rent-Geared-to-Income (RGI) units and repayable assistance for non-RGI units.
  • Cover the mortgage payments, building maintenance and other shelter related costs.
Under HOMES BC

  • The subsidy BC Housing pays for non- RGI units is considered a repayable loan, based on the difference between the economic rent and the non-RGI rent contribution.
  • Economic rent is the estimated amount it costs per unit per month to cover the eligible operating costs of the development. The economic rent is set at the beginning of each fiscal year based on the annual operating budget for the period.
  • BC Housing provides repayable assistance during the period the economic rent for non-RGI units exceeds the tenant rent contribution for these units.
  • As mortgage costs for the building decline and market rental rates rise, the level of repayable assistance will decrease. When market rents exceed economic rents — probably about year twenty — you start repaying the loan assistance, using the surplus funds you collect from the non-RGI rents.
  • No interest is charged before the period of repayment starts. But when repayment begins, interest begins to accrue as well. The balance of the loan bears interest at the prime rate and payments are set annually.
  • The repayment date occurs on the first day of the fiscal year following the year economic rents begin to exceed market rents. At this time, you begin to repay the amount non-RGI rent contributions exceed economic rent for these suites. For example, if economic rent is $600 and the non-RGI rent is $625, you would repay $25 on that unit.
Click here for a Subsidy Formula Table, which may not include your program. For subsidy information specific to your program, please contact your Non-Profit Portfolio Manager.