A Homeowner’s Guide to Developing, Constructing, and

Managing a Legal Second Suite with Redwood Park

Communities™ and Community Builders™

TABLE OF CONTENTS

1 | R E D W O O D S E C O N D S U I T E S ™

02. ABOUT THE PROJECT

03. THE NEED

04. WHAT IS A SECOND SUITE?

05. HOW DOES IT WORK?

planning 05.

construction 07.

being a landlord 08.

09. BENEFITS

10. WHY CHOOSE REDWOOD

SECOND SUITES™?

HOW TO ENROL 10.

| ABOUT THE PROJECT

2 | R E D W O O D S E C O N D S U I T E S ™

Redwood Park Communities™ and Community Builders™, in collaboration with the City of

Barrie and the County of Simcoe, and in partnership with proactive property owners like

you, have launched a new housing initiative called Redwood Second Suites™. The goal

of this project is to provide safe and affordable housing for individuals and families in

need of lower-cost homes.

Since 2009, Redwood Park Communities™ has worked to provide hopeful housing for our

community. Since May 2013, Redwood Park Communities™’ first building, United House,

has seen 42 women and their 61 children through a period of transitional housing as they

have left the Barrie Women and Children’s Shelter. The supportive community and

housing that is found at United House drastically improves their odds of transitioning

successfully out of abuse and/or poverty.

This impact is what inspired us to combine our skills and passion for our community to

increase the availability of affordable housing in Simcoe County. Redwood Park

Communities™ and Community Builders™ work together to guide you, the homeowner,

through the planning, the development, and the construction of a second suite in your

home. We will also find a suitable occupant for your second suite, helping to reduce your

liability as a landlord. This information package outlines the regulations, requirements and

standards of building and operating a Redwood Second Suite™.

We believe that making our community stronger is just as important as building a home.

We support our residents with the resources they need to be good neighbours and

members of a greater community.

| THE NEED

As of 2014, there were 1,751 house-holds awaiting social housing (a form of affordable housing) in Barrie alone. There are 1,172 already occupied social housing units in Barrie, suggesting a total of 2,923 households requiring social housing. This means that less than half of the people in need of social housing are able to get it. Individuals, families with children, and seniors wait an average of 4 years for housing geared to their income level.

3 | R E D W O O D S E C O N D S U I T E S ™

While the average market rent in Barrie for a one bedroom apartment is among the highest in Canada at over $1,100/month, the maximum monthly shelter allowance for a single individual on social assistance is only $376, and the gap is widening.

Only 32% of Barrie’s resale-property prices meet the definition of affordability, and the demand is growing faster than the amount of available affordable housing.

Barrie’s vacancy rate for rental housing is only 1.3%, which is well below the “healthy” level of 5% vacancy. Due to the extreme-ly high demand, rental rates are being driven upwards at an accelerated pace, causing the lack of affordable housing to increase even further.

SHELTER ALLOWANCE

AVERAGE MARKET RENT

HEALTHY LEVEL

ACCOMMODATED

WAITING

IN NEED

| WHAT IS A SECOND SUITE?

In some areas of Simcoe County, second suites have existed for many years, providing tenants with affordable rental accommodation in neighbourhood settings while generating rental income for homeowners.

Second suites are now permitted in Barrie in single detached homes, semi-detached homes, row townhouses, and ancillary structures such as detached garages. A second suite (also called accessory apartment or in-law suite) is a self-contained rental apartment in a single dwelling house that has its own entrance and contains its own kitchen and bathroom. Many second suites are basement apartments, but they can be installed on any floor of the house including the attic, as well as in detached garages that have been converted into a dwelling unit. In previous bylaws, second suites were restricted to 40% of the existing building, and although there is no longer any limit to the size of these units, the unit may not have more than two bedrooms.

Only one second suite is permitted per lot and each dwelling unit must have its own parking space. The City of Barrie does not allow second suites in the Georgian College area, nor will existing unregistered second suites in this area be grandfathered in.

4 | R E D W O O D S E C O N D S U I T E S ™

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| HOW DOES IT WORK?

There are 3 main phases involved in operating a second suite: Planning, Construction, and Being a Landlord. Redwood Park Communities™ and Community Builders™ will walk you through each of these phases to make the process as easy as possible.

5 | R E D W O O D S E C O N D S U I T E S ™

PHASE 1 | PLANNING | LEGAL REQUIREMENTS

After filling out an online questionnaire, Community Builders™ will review your eligibility and arrange a meeting with you to discuss details and cost estimates for the 4 phases of construction: planning, structural, mechanical, and finishing.

Provisions permitting second suites throughout the City of Barrie came into effect in June of 2015. For a second suite to qualify as a registered unit, it must meet:

• Residential Zoning Requirements • Property Standards • Occupancy Standards • Health and Safety Requirements • Fire and Electrical Codes

To ensure that your suite meets these requirements, you can submit authorization forms that allow Community Builders™ to file all necessary permits on your behalf (these forms are included in our client information packages). These permits are listed to the right:

Established standards ensure safety and comfort for both property owners and tenants. If you are a property owner or homebuyer considering a second suite, take the time to learn about your obligations in owning a home containing a second suite. The time you spend planning ahead will better equip you to handle any situation that may arise.

ZONING COMPLIANCE CERTIFICATE

BUILDING PERMIT

REGISTRATION CERTIFICATE

Confirms that the use of the suite is a permitted use and the use complies with zoning standards

Ensures that a qualified person will design the required construction for compliance with the Ontario Building Code by submitting the relevant plans and applications (fees are included in planning cost). Community Builders™ will take care of all necessary inspections throughout the construction process

Proves that your second suite is legal and conforms to regulations

6 | R E D W O O D S E C O N D S U I T E S ™

PHASE 1 | PLANNING | APPLYING FOR FUNDING Community Builders™ will provide you with a 4-phase cost estimate for their services, however there are thousands of dollars worth of forgivable loans, government grants, and tax rebates available to you that could substantially lower the cost.

The County of Simcoe and the Federal and Provincial governments offer funding for the construction and use of a secondary suite. The program allows you to qualify for a forgivable loan of up to $25,000, and the decided amount is determined by the cost of work approved by the County. The availability of funding is limited and allocated on a first-come-first-served basis, so approval is contingent on not only applicant eligibility, but on the availability of funding from the County.

Visit simcoe.ca/ontariorenovates for more information about eligibility requirements.

The City of Barrie offers a Built Boundary Redevelopment Grant and Tax Rebate that allows you to qualify for coverage of a large percentage of your development charges, building permit fees, and planning application fees as an equivalent cost grant, as well as an incremental tax rebate paid back over 5 years.

The equivalent cost percentages vary based on the type of affordable housing you provide; if you contract with Redwood Park Communities™ and Community Builders™, you will qualify as “transitional housing” which provides 75% coverage. If you contract independently you will qualify as an “affordable housing rental unit” which provides 25% coverage.

Our client information package will provide the applications to both the Simcoe County loan and the City of Barrie grant.

SIMCOE COUNTY SECONDARY SUITE PROGRAM

CITY OF BARRIE BUILT BOUNDARY COMMUNITY IMPROVEMENT PLAN REDEVELOPMENT GRANT + TAX REBATE

Apply

Assessment & Approval

Funding Amount Determined

Financed Suite

For more information on eligibility and the payment process, visit barrie.ca/Doing%20Business/PlanningandDevelopment/Pages/incentives.aspx.

7 | R E D W O O D S E C O N D S U I T E S ™

PHASE 2 | CONSTRUCTION

Site visit: Take measurements and

dimensions for floor layout

Complete layout drawings as proposed by client

Generate schedule in cooperation with the client

to start construction

Schedule inspections as required at each stage of

construction

GENERAL STEPS

The construction process is divided into 4 stages and the cost estimates are made on a stage-by-stage basis.

2. STRUCTURAL COSTS • Demolition if necessary • New entries • Framing • Windows

3. MECHANICAL COSTS • Plumbing • HVAC • Electrical • Insulation & drywall

4. FINISHING COSTS • Carpentry • Painting • Flooring • Appliances

A more detailed timeline and cost estimate is provided in the new client package, available upon the signing of a business agreement.

1. PLANNING COSTS • Funding Applications • Permit fees • Design drawings

COST BREAKDOWN

8 | R E D W O O D S E C O N D S U I T E S ™

PHASE 3 | BEING A LANDLORD

The agreement with Redwood Park Communities™ for the most part is a commercial Head lease and is not covered under the Residential Tenancies Act. The agreement outlines house rules that both the homeowner and the occupant need to comply with. These rules are tailored to each unique situation, which will provide added protection to both the homeowner’s and occupant’s rights.

Although the Residential Tenancies Act does not apply in its entirety, some of the terms of the Act you must still comply with include:

• Unit must meet all health, safety, housing and maintenance standards

• You must provide basic services (heat, electricity, hot and cold water, oil or natural gas)

Community Builders™ will inspect your second suite and take care of regulatory and circumstantial maintenance, as well as be available to make repairs when needed. If damage beyond the usual wear and tear is caused by the occupant, Redwood Park Communities™ will have those damages repaired at no additional cost to you.

LEGAL REQUIREMENTS

In a conventional rental situation, the landlord is responsible to find a tenant, usually by advertising the unit. Then the landlord must sift through references, criminal record checks, and conduct face-to-face interviews to decide on an occupant. By contracting with Redwood Park Communities™, we find occupants on your behalf, thus eliminating your having to worry about these tedious tasks.

Redwood Park Communities™, as your tenant, will keep your suite occupied by independently assigning pre-screened occupants to your suite based on mutual benefit and individual needs, ensuring a healthy transition for the occupant and peace of mind for the landlord. The extent of your interaction and involvement with the occupant is based on your own comfort level, however if you desire a more personal relationship beyond the standard landlord-tenant arrangement, contact Redwood Park Communities™ to begin the volunteer screening process.

All occupants must sign and agree to house rules outlined by Redwood Park Communities™, which you will get a copy of. If there are issues with the occupant you may contact one of our family support workers.

Being a landlord is a big responsibility, however by contracting with Redwood Park Communities™ and Community Builders™, we take on almost all of those responsibilities.

FINDING AN OCCUPANT COLLECTING RENT

A rent amount will be decided upon between you and Redwood Park Communities™, however, through the Second Suite program you must provide “affordable housing”, which means the maximum rent you can charge is the average market rent for your regional area, and must include utilities. These rent averages are provided by the Ministry of Municipal Affairs and Housing. The average market rent for a one bedroom apartment in Barrie is over $1,100/month, but most of our occupants’ rental budgets are based on their social assistance housing allowance and whether or not they have dependents. Since Redwood Park Communities™ is your tenant, Redwood™ will pay the lease payments by automatic direct deposit to your bank account each month. If the occupant is late on a payment to Redwood Park Communities™, this will not affect the timeliness of your receiving your payment from Redwood Park Communities™.

| BENEFITS

To OUR COMMUNITY:

9 | R E D W O O D S E C O N D S U I T E S ™

Simcoe County has a target of creating 2,685 new affordable housing units in the region by 2024, which includes the specific goal for the City of Barrie to add 840 total units within the city by 2024, aligning with Simcoe County’s and the City’s 10-year

plan. The City of Barrie has so far created 121 new affordable housing units toward it’s goal. One of Barrie’s strategies to increase available housing is the creation of new second suites. This is exciting news for both property owners hoping to add an extra source of income, as well as for the thousands of people waiting for affordable housing.

The addition of second suites in Barrie will provide much needed rental units at a more affordable cost. Redwood Park Communities™ and Community Builders™ are committed to helping property owners become a part of this process. With your help, we can provide supportive housing to as many as 60 new families each year.

Our community will see shorter wait times for social housing, more availability in emergency housing such as shelters, as well as a decrease in homelessness as more individuals and families will be able to afford housing.

To YOU (The Property Owner):

The most obvious benefit to you as the owner of a registered second suite is the financial gain. Whether you currently own a house or are thinking of buying one, operating a rental unit in the home can greatly subsidize the many costs of home ownership.

Other financial benefits include:

• Potential tax deductions available under the Income Tax Act • Increased property value and enhanced marketability of the property

on resale • Access to increased mortgage financing • Increased ability to pay down mortgage faster • Having potential government funding available to contract the suite

Beyond the financial incentives offered by a registered second suite, many owners benefit by:

• Contributing to the overall health of Barrie’s communities by adding to the affordable housing stock

• Providing a safe and secure environment for an individual or family in need

• Landlords are walked through the process step-by-step and free from the paperwork and property management duties

For more details on each of these financial benefits please visit redwoodparkcommunities.com/secondsuites

| WHY CHOOSE REDWOOD SECOND SUITES™?

Redwood Park Communities™ and Community Builders™ provide support for property owners in the process of creating new affordable housing. We offer a complete start-to-finish partnership, which comes with many benefits, including:

Minimal financial outlay in exchange for an increase in property value and steady income

Reliable expertise for planning the unit according to the Ontario Building Code and property standards

Quality construction of your second suite

Freedom from the hassle of grant and permit applications

Additional government funding available

Peace of mind regarding your occupant

The opportunity to offer affordable housing to an individual or family in need

| HOW DO I ENROL?

Visit redwoodparkcommunities.com/secondsuites for more information about how you can get involved in the Redwood Second Suites™ program and, if you are interested in our services, complete the online questionnaire.

Redwood Park Communities™ and our partner agencies provide supportive community and care to each individual and family that will be housed in your available space. The degree to which you are involved is your choice, however, if you have a desire to become more involved and would like to volunteer to provide supportive community and friendship to other members of our Community, you may also apply as a Redwood Park Communities™ volunteer and will be entered into the ongoing 4-stage volunteer training program. If volunteering is of interest to you, you may fill out our contact form at rewoodparkcommunities.com/connect and one of our volunteer coordinators will be in touch.

1 0 | R E D W O O D S E C O N D S U I T E S ™