Residential Rehabilitation Assistance Program (RRAP) - Rooming House
The Rooming House Residential Rehabilitation Assistance Program (Rooming House RRAP) offers financial assistance to pay for mandatory repairs to rooming houses occupied by low-income tenants. This program is available in both rural and urban areas.
Sponsoring agency:
Canadian Mortgage and Housing Corporation (CMHC)
Type of agency:
Federal government
Eligibility
You, as the owner of a rooming house, may apply if your property is eligible. To receive a loan, you will enter into an agreement that places a ceiling on the rents that you may charge after the repairs are completed and limits rent increases during the term of the agreement.
Your property is eligible if it meets the following criteria:- It is owned by a private entrepreneur, a non-profit corporation, or housing cooperative that is not receiving government housing assistance;
- It is a rooming house containing more than three bed-units intended to serve as permanent accommodation with rental rates at or below the established levels for your local area;
- The property is at least five years old and lacks basic facilities or requires major repairs in at least one of the following areas: heating, structural, electrical, plumbing and fire safety;
- A legitimate landlord and tenant relationship exists. Rents being charged can be confirmed.
Eligible repairs include mandatory repairs required to bring rooming houses up to minimum levels of health and safety. The quality of the repairs should extend the useful life of the dwelling for at least 15 years.
Assistance is in the form of a fully forgivable loan of up to 100 per cent of the cost of eligible repairs. The amount you could receive is based on the cost of mandatory repairs and the number of eligible units in your rental property. 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.
The maximum amount per unit you could receive varies according to the three geographic zones:
| Max. loan/unit | |
| Zone 1: Southern areas of Canada | $16,000 |
| Zone 2: Northern areas | $19,000 |
| Zone 3: Far northern areas | $24,000 |
Restrictions
Hospitals, motels, hotels, bed and breakfasts, residential-care facilities or special-purpose projects are NOT eligible buildings.
Please note that any repairs carried out before the Rooming House RRAP loan is approved in writing are not eligible.
Application procedure
For more information on how to apply for this program, please contact CMHC at 1-800-668-2642
Contact information
Rated A+ by the Better Business Bureau.
