Rental rehabilitation assistance program and rental conversion program

The Rental Residential Rehabilitation Assistance Program (RRAP) provides landlords with financial help to repair substandard units rented to low-income households and rooming houses. The program also provides funding to help homeowners modify their property to create a secondary/garden suite for an adult with a disability. 

The Rental Conversion Program provides funding to help convert a non-residential property into affordable rental housing.

The amount you may receive is based on the cost of mandatory repairs and the number of eligible units in the project. The assistance is a forgivable loan, and you may receive up to $36,000 per unit. Except for non-profit organizations, owners must contribute 25% of the total repair cost. All approved applicants must sign a rental agreement to keep rents affordable to low-income tenants during the loan period.

The amount you may receive is based on the cost of the mandatory repairs and the number of eligible bed units in your rooming house. The assistance is a forgivable loan, and you may receive up to $24,000 per bed unit. Except for non-profit organizations, owners must contribute 25% of the total repair cost. All approved applicants must sign a rental agreement to keep rents affordable to low-income tenants during the loan period.

The maximum forgivable loan for creating a secondary/garden suite or an extension to an existing home is $36,000. Owners must contribute 25% of the total cost. You must produce equity or provide proof of other sources of financing to cover costs beyond the maximum forgivable loan. 

The amount you may receive is based on the cost of eligible work and the number of eligible units within the project. The assistance is a forgivable loan, and you may receive up to $36,000 per self-contained unit and up to $24,000 per bed unit. Except for non-profit organizations, owners must contribute 25% of the total repair cost. All approved applicants must sign a rental agreement to keep rents affordable to low-income tenants during the loan period.

A property is eligible if it meets the following requirements:

• it is owned by a private entrepreneur, non-profit corporation or housing co-operative that does not receive any government housing assistance
• for rental units, it contains one or more self-contained units, rented or intended to be rented to occupants with incomes below the established income ceilings set by Housing NB and Canada Mortgage and Housing (CMHC)
• for rooming houses, it contains more than three bed units that are rented to people not related to the owner and intended to serve as permanent accommodation
• the rent must be at or below housing income limits established by Housing NB and CMHC
• the property is at least five years old and lacks basic facilities or requires major repair in at least one of the following areas:
  • structural
  • heating
  • electrical
  • fire safety
  • plumbing

Properties such as nursing homes, care facilities and special purpose housing, are not eligible for RRAP funding.

Secondary/garden suites can only be created on existing family residential properties. You must show that the property can feasibly be converted to include a secondary or garden suite that will meet Housing NB requirements. The new unit must be modest in size and amenities.

This program is eligible for any person who is restricted or cannot perform an activity within the range considered normal. Your income must be below the established housing income limit, which varies by household size and location.

A property is eligible for the Residential Conversion Program if:

• it is owned by a private entrepreneur, non-profit corporation or housing co-operative
• there is a legitimate landlord-tenant relationship
• the newly converted property will have more than three bed units, or one or more self-contained units rented to occupants with low incomes
• the rent will be at or below levels established by the department - the project must be financially viable based upon the agreed-upon post-RRAP rents

Properties that do not operate as rental businesses are not eligible for conversion assistance.