N.S. couple question removal of backyard suite housing incentive program

A Nova Scotia couple planning to build a backyard secondary suite on their rural property say it’s going to be harder without a provincial incentive program they were hoping to access.

Gary Marsh and Mary Cook want to build on their land in Lockhartville, Kings County, to rent to a friend who is on long-term disability.

The program, launched in 2023, provided forgivable loans of up to $40,000 for people who met the criteria.

When preparing an application, Marsh and Cook were surprised to find out the program had concluded at the end of March.

“There is just not enough low-rent units available that are affordable and programs like this I think should be pushed harder,” said Marsh.

With the suite estimated to cost $150,000, the money would have been a help, Cook said, adding they have the space to make a difference.

“Why not make good of it to help this housing crisis,” Cook said.

Erin Leahy, 48, is hoping to live in the unit. The basement apartment she is now renting will no longer be available at the end of the summer.

“It’s really stressful,” Leahy said. “As a person with a disability, it’s very hard to find something that is affordable.”

Minister happy with program but need in other areas increasing

Provincial Housing Minister John White said the incentive program exceeded its original target, with 624 applications approved before the program’s end date. He said 305 of those projects have been completed and funding remains in place for the rest to be finished.

However, interest had been dropping off and the province is focusing on a number of housing solutions, White said.

Those include helping people pay rent in an increasingly costly market, he said, referring to a $15.9-million increase to the province’s rent supplement program.

“There are people who are still struggling with affordability. So we’ve diverted money over,” White said.

The program can support 10,500 active rent supplements at one time. 

“It’s not waiting for a build, it’s going right to those folks. There’s no sense holding money in the budget line that’s not being spent completely,” he said. “When you’re dealing with a crisis, you try to direct money to the best and fastest place to help.”

However, the timing of the decision is being questioned as many people with disabilities are preparing to move back into the community from institutional settings in the next two years as part of a human rights remedy.

That is happening after a 2021 court ruling found systemic discrimination against people with disabilities and called for a transition into community housing. 

Lora Church, executive director of Nova Scotia Community Living Organizations, said the availability of accessible housing units remains an issue throughout the province but particularly in rural areas.

“And so this program allowed for families to build those accessible units where they weren’t available,” Church said.

“Rental subsidies only help when there’s a rental space available.”

The Canadian Home Builders’ Association Nova Scotia also expressed concern about the program’s end.

“For many homeowners, the financial support made these projects feasible. Without it, fewer secondary suites may move forward, which will directly impact supply,” the association said in a statement.

There has been a mixed reaction from contractors. Some said the loans were a motivating factor behind some projects, while others reported they were not a major consideration.

JonesCo Builders, based in Porters Lake, N.S., has completed about a dozen of the units in the Halifax area in the past year. Company president Mike Jones said he was aware of only one of those clients having accessed the program.

The average cost of those units was about $185,000, with some exceeding $300,000, Jones said.

“Most of our clients that are considering something like this already have funds available or this is something they are already planning to do and so the forgivable loan wasn’t something that was a make or break for them,” he said.

Meanwhile in Kings County, Gary Marsh, Mary Cook and Erin Leahy are looking into modifying their financing for the build but are still hoping to go ahead later this year.

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