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Residential Rehabilitation Assistance Program
2011 - 2012 |
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The Residential Rehabilitation Assistance Program (RRAP) is a Canada Mortgage and Housing Corporation (CMHC) affordable housing program for low-and-modest income households, which provides funding for housing repairs, housing modifications for disabled residents, creating secondary suites and converting non-residential buildings into new rental housing. The City of Toronto delivers RRAP funding to eligible property owners subject to available funding.
RRAP Funding
Funding for 2011-2012 has now been allocated to Toronto and applications are being accepted. Please note that RRAP cannot pay for work already completed. For more information on repairs to existing homes or on modifications for disability access, please call 311 Toronto or (416) 392-2489.
Second Suites funding to create affordable rental housing is also available. Apply directly to CMHC for the application forms, application guide, checklist, sample application and frequently asked questions.
 Eligibility
House Repairs:
Housing Conversion
Second Suites
How to Apply
Rental/Rooming House Repair, Conversions and Second Suites
Eligibility
Both homeowners and rental property owners can apply for RRAP.
Homeowners
Homeowners are eligible for funds if their total household income is below the Income Thresholds. As well, the value of their property must not exceed the House Value Threshold.
Rental and Rooming House Landlords
Eligible applicants include private entrepreneurs and non-profit corporations or co-operatives without federal or provincial housing subsidies at the property to be repaired.
Landlords are eligible for funds if the rents are below Maximum Market Rents and tenant incomes are below Income Thresholds. Funds are not available for work already started. The applicant must pay for the cost of repairs which exceed the maximum loan before loan funds are provided.
Maximum Market Rents 2011-2012 for Toronto, including utilities:
| Rooming house bed-unit |
$552 |
| Bachelor and one-bedroom unit |
$920 |
| Two-bedroom unit |
$1,085 |
| Three-bedroom unit |
$1,320 |
| Four-bedroom unit |
$1,635 |
Income Thresholds 2011-2012
Eligibility income thresholds depend on family size. Examples include:
| Single person or couple |
$37,000 |
| Two or three persons |
$43,500 |
| Four or five persons |
$53,000 |
| Six or more persons |
$65,500 |
| House Value Threshold 2011-2012
Toronto’s House Value is $450,000 throughout the City based on CMHC’s analysis of annual house sales.
For Homeowners to qualify for Repair loans or Modifications for Disability loans, their property value can not exceed the threshold.
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Forgivable Loan
Funds are provided as a forgivable loan — a loan that does not have to be repaid provided the homeowner or landlord meets all of the terms of the loan. To be eligible for a forgivable loan, homeowners must agree to own and occupy their home for up to five years. Landlords must agree to operate the rental housing for eligible tenants at affordable rents levels for up to 15 years.
Housing Repairs
RRAP must be used to make urgent, essential repairs or replacements to at least one of the following building elements:
- structural and building exterior
- electrical
- plumbing
- heating
- fire safety
Repairs must extend the life of an existing residential building for at least 15 years. Qualifying repairs are funded on a least-cost basis. Elements that cannot be economically repaired are replaced. Repairs already completed or caused by neglect are not eligible for RRAP. Converting an oil furnace to gas, replacing cupboards, painting walls or other cosmetic improvements are not eligible for repair funding. However, energy upgrades can comprise up to 15 per cent of the RRAP homeowner loan.
Homeowners may apply:
- if the value of their house does not exceed the new House Value Threshold
- if total household income falls within the Income Threshold for their household type
- If the house is at least five years old.
Terms:
- up to 100 per cent of the cost of repairs or replacements to a maximum of $16,000 per owner-occupied home
Landlords may apply:
- if rental or rooming house units are rented below Maximum Market Rents
- if rental units are occupied by tenants with incomes that fall within
Income Thresholds
Terms:
- up to 100 per cent of the cost of qualifying repairs or replacements for each self-contained rental unit to a maximum of $24,000
- up to 100 per cent of the cost of qualifying repairs or replacements for each rooming house bed-unit to a maximum of $16,000
- landlords must enter into an agreement that establishes initial rents and annual rental increases
- for rental apartments, the agreement confirms that units will be rented to tenants with incomes that fall within Income Thresholds for the loan term.
Modification for a Disabled Resident
RRAP may be used to make home modifications to improve access for a disabled resident, based on a modification referral from a recognized health-care professional. Financial assistance allows homeowners and private landlords to make it easier for people with disabilities to live independently. Modifications must be permanent, reduce barriers and imminent safety risks, and be completed at lowest cost. Disabled funding may be combined with other RRAP funding, subject to availability.
Residents interested in minor modifications for accessibility could consider Home Adaptations for Senior's Independence (HASI). Please note that RRAP and HASI funding can not be combined.
Homeowners may apply:
- if the value of their house does not exceed the House Value Threshold
- if total household income minus the Federal Disability Tax Credit falls within the Income Threshold for their household type
- If a healthcare professional has confirmed the disability and prescribes modifications for greater independent living
Terms:
- Up to 100 per cent of the cost of qualifying repairs or replacements to a maximum of $16,000 per owner-occupied home.
Landlords may apply:
- if their affordable rental or rooming house unit meets current occupancy standards
- if their affordable rental or rooming house units are occupied by disabled tenants whose total household incomes minus the Federal Disability Tax Credit fall within Income Thresholds.
Terms:
- up to 100 per cent of the cost of modifications for each self-contained rental unit to a maximum of $24,000 or $16,000 for a rooming house unit. (Common area modifications will be pro-rated.)
- landlords must enter into an agreement to rent affordable units to disabled tenants with incomes that fall within Income Thresholds for the loan term.
Housing Conversion
RRAP may be used to convert existing non-residential properties into new, affordable rental units or rooming house bed-units and may include modifications for disabled residents. Vacant or underutilized portions of residential buildings are not eligible for funding. Eligible applicants include private entrepreneurs, non-profit corporations, co-operatives, municipalities and First Nations who own and wish to convert non-residential properties to create legitimate, permanent and affordable rental housing.
Terms:
- up to 100 per cent of the cost of creating each self-contained rental unit to a maximum of $24,000
- up to 100 per cent of the cost of creating each rooming house bed-unit to a maximum of $16,000
- landlords must enter into an agreement that establishes initial rents and annual rental increases
- for rental apartments, the agreement confirms that units will be rented to tenants with incomes that fall within Income Thresholds for the loan term
Second Suites
RRAP funding is available to create a new rental unit in an existing single family home house for a senior citizen or person with a disability. Eligible applicants include homeowners and investment property owners who own a single-family home and wish to create a new, affordable, legal rental unit within the home. The new rental unit must be rented to a senior (65 years or older) or an adult with disabilities.
Homeowners and landlords may apply:
- if the home is a single, semi-detached or row house which can legally contain a secondary rental suite
Terms:
- up to 100 per cent of the cost of creating a second suite to a maximum of $24,000
- landlords must enter into an operating agreement, which establishes the rent level and annual increases that can be charged during the term of the operating agreement
- fully forgivable provided landlord adheres to conditions of operating agreement
How to Apply
Homeowner Repair and Modification for Disabled Resident Funds for homeowners and private landlords are available annually, usually from spring to late-winter. For homeowners, City of Toronto staff will confirm your eligibility before visiting your home for an initial inspection and to take your application in person. For further information, please read our publication, “Making RRAP work for you”.
(See also Choosing a Contractor but please note: Repairs completed before your RRAP application is approved are not eligible for funding.)
Homeowners will also need to collect documents in advance showing current property assessment and property taxes paid, all applicable household incomes and rents collected. If applying for modifications for a disabled resident, verification of a disability from a healthcare professional must also be provided.
Landlords can apply for Modifications for Disabled Resident funds by calling 311 Toronto or (416) 392-2489. They must provide verification of a tenant’s disability from a healthcare professional. Common area modifications will be pro-rated.
E-mail rrap@toronto.ca or call 311 Toronto or (416) 392-2489 for more information or to determine if you are eligible to apply and what documents are required.
Updated: November, 2011
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