CRD Rural Housing Program

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Welcome to the Capital Regional District Rural Housing Pilot Program!

The CRD’s Rural Housing Program is a Pilot Project for the Southern Gulf Islands (SGI) and Salt Spring Island (SSI) Electoral Areas (EAs) 2025 - 2026. The program offers support for community solutions within the rural context of the islands and allows the CRD to test approaches for addressing the housing crisis in its smaller communities, outside of the urban containment boundary. Depending on outcomes, the program could be implemented across the region’s other rural communities in the future.

Pilot Project Streams

1. Accessory Dwelling Unit (ADU) Incentive Program:

Provides eligible homeowners with 50% of the cost to build an ADU, up to a maximum of $40,000 - in exchange for commitments to non-market rents for five years. An ADU includes a secondary suite or cottage as defined in each island’s land use bylaw and as permitted by Islands Trust zoning.

2. Rural Housing Pre-Development Funding:

Provides for purpose built, multi-unit affordable housing to offset the costs of technical reports & on-site infrastructure.

3. Coordination:

Inter-agency coordination and support to non-profit housing providers - key component of the RHP pilot project is the establishment of a dedicated program coordinator within the CRD to support rural housing for the duration of the two-year pilot program. Once hired, the RHP coordinator will help administer pilot project funding and offer support for non-profit housing proponents.

More about the CRD Rural Housing Program:

Like elsewhere, rural communities in the CRD struggle with a lack of housing options. In the islands, solutions are even more challenged by environmental limits, servicing constraints, higher building costs, and a lack of funding for small scale housing projects.

The ADU Incentive Program provides eligible homeowners with up to 50% of the cost of renovations to build an ADU, up to a maximum of $40,000, in exchange for a commitment to non-market rents for a period of five years. To be eligible for preliminary approval, the ADU must have a building permit in place. Funding is awarded once that unit has been approved with an occupancy permit. The public benefit of this program is the creation of new ADUs as non-market units, with initial rents aligned with Provincial Rental Income Limits, making them feasible given today’s building costs.

Funding available for 2025 and 2026 is $250 000 respectively, for a total ADU Incentive Program valued at $500 000 for Salt Spring Island, Mayne Island, the Penders, Saturna Island, and Galiano Island.

How Does the ADU Incentive Program Work?

  • Grants of $40,000 up to a total of 50% of construction costs are available for new Accessory Dwelling Units.
  • Applications will be accepted after April 01, 2025, for preliminary approvals. Final approval is not granted until the owner secures a building permit. As a pilot project, there are limits on the number of incentives available, applications will be reviewed based on eligibility and available remaining funds.
  • From the time of final application approval, owners have one year for the ADU to be built and to receive an occupancy permit. Extensions may be granted on a case-by-case basis.
  • The funding is released at the time of occupancy permit.
  • Owner must enter into a section 219 covenant or housing agreement to meet program requirements.
  • Rents must be limited to the Provincial Rental Income Limits for 5 years, even with tenant changeover.
  • Rents can increase according to the Residential Tenancy Act.
  • Unit must have a rental agreement under the Residential Tenancy Act.
  • Unit cannot be rented to a family member, left vacant, used non-residentially, or used as a short-term rental.
  • The owner is responsible for submitting documents that prove program compliance to CRD.
  • Once the unit is complete, applicants will receive the grant. The amount will be based on the costs of construction, up to a maximum of $40,000. An occupancy permit will be required prior to receiving the funding.

Pre-development Funding Program:

The Rural Housing Pre-development Funding (RHPDF) program provides funding for pre-development costs for purpose-built, affordable housing projects. Eligible costs include soft costs, site preparation, and on-site infrastructure development, etc, but exclude capital costs related to project construction.

As part of the RHPDF, CRD has developed a financial feasibility tool and guide to evaluate project funding proposals and to improve eligibility for senior government capital funding. The financial feasibility tool helps demonstrate project viability but also serves as an educational resource and “readiness tool” for non-profits and other advocates exploring affordable housing projects. To ensure funding reaches equitably across eligible projects, between April and June, the CRD is seeking expressions of interest to gauge the level of RHPDF funding projects will require.

Pre-development funding available for 2025 and 2026 is $250 000 respectively, for a total RHPDF program valued at $500 000 for Salt Spring Island, Mayne Island, the Penders, Saturna Island, and Galiano Island. Efforts will be made to distribute the funding equitably and with consideration of project feasibility and timelines.

Organizations are invited to submit Expressions of Interest (EOIs) for funding to assist with early development expenses. Project proponents who have submitted an EOI will be contacted and invited to submit full applications. Applications will allow groups to demonstrate a reasonable likelihood of project viability with a minimum Debt Service Coverage of 1.1.

Please send your Expression of Interest to ruralhousing@crd.bc.ca by June 02, 2025.

Pre-development Funding Application Process:

Step One: Program Familiarity

Please review the RHPDF Application guide and Pre-Development Financial Feasibility and Readiness Tool to understand program requirements prior to submitting an expression of interest.

Step Two: Expression of Interest

The CRD is seeking Expressions of Interest from April 15 to June 02, 2025 to gauge the level of PDF funding projects will require and to ensure funding reaches equitably across eligible projects. Project proponents who have submitted an EOI will be contacted and invited to submit full applications. Applications will allow groups to demonstrate a reasonable likelihood of project viability with a minimum Debt Service Coverage of 1.1.

CRD will review expressions of interest and earmark funding for eligible projects based on the funding amounts requested and the funding available, with consideration of equitable distribution across the pilot area.

Step Three: Feasibility Tool

This funding program includes a financial feasibility tool and guide to evaluate project funding proposals and to improve eligibility for senior government capital funding. The financial feasibility tool is a fillable spreadsheet that will auto-calculate to help demonstrate project viability. It also serves as an educational resource and “readiness tool” for non-profits and other advocates exploring affordable housing projects.

Step Four: Invitation to Submit Application

Project proponents who have submitted an EOI will be contacted and invited to submit full applications and a completed financial feasibility tool demonstrating a reasonable likelihood of project viability, with a minimum Debt Service Coverage of 1.1.

The RHPDF application form will be posted after June, 2025 and will include a documentation checklist. Proponents will need to upload documentation to the CRD application portal.

CRD will accept and review applications on a continuous basis after June 02, until funding is fully allocated. During the assessment of your application, CRD will:

  • Assess your eligibility
  • Assess your viability
  • Confirm the amount of funding your project will receive

Step Five: Funding Approval and Agreement

  • Signed CRD Rural Housing Program Pre-Development Funding Program Grant Agreement

Step Six: Reporting

  • Within one year of the funding award, applicant to provide CRD with a completed report (CRD form) outlining the funds were used as promised and including an update of the project’s next steps towards completion.
  • Extensions will be considered upon request. Keep us in the loop!

Why a Rural Housing Pilot Program?

The RHP pilot is a response to the requests from the SGI Community Economic Sustainability Commission (SGI CESC) and the SSI Local Community Commission (SSI LCC) for the CRD to assist with local housing. The coordination on SSI and SGI is funded by the SGI Tourism Partnership (SGITP), which is the official destination marketing organization for these areas and receives funding from the province through online accommodation providers on the islands. This financial support allows the CRD to have staff that can manage the program, seek out further partnerships, and provide strategic advice to help project proponents with the complex regulatory environment.

Community Engagement

In 2024, CRD conducted community engagement with property owners to test the potential uptake of the ADU Incentive Program, and with non-profit housing sector in both the SSI and SGI EAs to better understand this sector’s unique project-specific needs. A What We Heard Report is available here.

For questions or to inquire about applying to CRD Rural Housing Pilot Program please email: CRD Rural Housing: ruralhousing@crd.bc.ca

Subscribe for updates!

Welcome to the Capital Regional District Rural Housing Pilot Program!

The CRD’s Rural Housing Program is a Pilot Project for the Southern Gulf Islands (SGI) and Salt Spring Island (SSI) Electoral Areas (EAs) 2025 - 2026. The program offers support for community solutions within the rural context of the islands and allows the CRD to test approaches for addressing the housing crisis in its smaller communities, outside of the urban containment boundary. Depending on outcomes, the program could be implemented across the region’s other rural communities in the future.

Pilot Project Streams

1. Accessory Dwelling Unit (ADU) Incentive Program:

Provides eligible homeowners with 50% of the cost to build an ADU, up to a maximum of $40,000 - in exchange for commitments to non-market rents for five years. An ADU includes a secondary suite or cottage as defined in each island’s land use bylaw and as permitted by Islands Trust zoning.

2. Rural Housing Pre-Development Funding:

Provides for purpose built, multi-unit affordable housing to offset the costs of technical reports & on-site infrastructure.

3. Coordination:

Inter-agency coordination and support to non-profit housing providers - key component of the RHP pilot project is the establishment of a dedicated program coordinator within the CRD to support rural housing for the duration of the two-year pilot program. Once hired, the RHP coordinator will help administer pilot project funding and offer support for non-profit housing proponents.

More about the CRD Rural Housing Program:

Like elsewhere, rural communities in the CRD struggle with a lack of housing options. In the islands, solutions are even more challenged by environmental limits, servicing constraints, higher building costs, and a lack of funding for small scale housing projects.

The ADU Incentive Program provides eligible homeowners with up to 50% of the cost of renovations to build an ADU, up to a maximum of $40,000, in exchange for a commitment to non-market rents for a period of five years. To be eligible for preliminary approval, the ADU must have a building permit in place. Funding is awarded once that unit has been approved with an occupancy permit. The public benefit of this program is the creation of new ADUs as non-market units, with initial rents aligned with Provincial Rental Income Limits, making them feasible given today’s building costs.

Funding available for 2025 and 2026 is $250 000 respectively, for a total ADU Incentive Program valued at $500 000 for Salt Spring Island, Mayne Island, the Penders, Saturna Island, and Galiano Island.

How Does the ADU Incentive Program Work?

  • Grants of $40,000 up to a total of 50% of construction costs are available for new Accessory Dwelling Units.
  • Applications will be accepted after April 01, 2025, for preliminary approvals. Final approval is not granted until the owner secures a building permit. As a pilot project, there are limits on the number of incentives available, applications will be reviewed based on eligibility and available remaining funds.
  • From the time of final application approval, owners have one year for the ADU to be built and to receive an occupancy permit. Extensions may be granted on a case-by-case basis.
  • The funding is released at the time of occupancy permit.
  • Owner must enter into a section 219 covenant or housing agreement to meet program requirements.
  • Rents must be limited to the Provincial Rental Income Limits for 5 years, even with tenant changeover.
  • Rents can increase according to the Residential Tenancy Act.
  • Unit must have a rental agreement under the Residential Tenancy Act.
  • Unit cannot be rented to a family member, left vacant, used non-residentially, or used as a short-term rental.
  • The owner is responsible for submitting documents that prove program compliance to CRD.
  • Once the unit is complete, applicants will receive the grant. The amount will be based on the costs of construction, up to a maximum of $40,000. An occupancy permit will be required prior to receiving the funding.

Pre-development Funding Program:

The Rural Housing Pre-development Funding (RHPDF) program provides funding for pre-development costs for purpose-built, affordable housing projects. Eligible costs include soft costs, site preparation, and on-site infrastructure development, etc, but exclude capital costs related to project construction.

As part of the RHPDF, CRD has developed a financial feasibility tool and guide to evaluate project funding proposals and to improve eligibility for senior government capital funding. The financial feasibility tool helps demonstrate project viability but also serves as an educational resource and “readiness tool” for non-profits and other advocates exploring affordable housing projects. To ensure funding reaches equitably across eligible projects, between April and June, the CRD is seeking expressions of interest to gauge the level of RHPDF funding projects will require.

Pre-development funding available for 2025 and 2026 is $250 000 respectively, for a total RHPDF program valued at $500 000 for Salt Spring Island, Mayne Island, the Penders, Saturna Island, and Galiano Island. Efforts will be made to distribute the funding equitably and with consideration of project feasibility and timelines.

Organizations are invited to submit Expressions of Interest (EOIs) for funding to assist with early development expenses. Project proponents who have submitted an EOI will be contacted and invited to submit full applications. Applications will allow groups to demonstrate a reasonable likelihood of project viability with a minimum Debt Service Coverage of 1.1.

Please send your Expression of Interest to ruralhousing@crd.bc.ca by June 02, 2025.

Pre-development Funding Application Process:

Step One: Program Familiarity

Please review the RHPDF Application guide and Pre-Development Financial Feasibility and Readiness Tool to understand program requirements prior to submitting an expression of interest.

Step Two: Expression of Interest

The CRD is seeking Expressions of Interest from April 15 to June 02, 2025 to gauge the level of PDF funding projects will require and to ensure funding reaches equitably across eligible projects. Project proponents who have submitted an EOI will be contacted and invited to submit full applications. Applications will allow groups to demonstrate a reasonable likelihood of project viability with a minimum Debt Service Coverage of 1.1.

CRD will review expressions of interest and earmark funding for eligible projects based on the funding amounts requested and the funding available, with consideration of equitable distribution across the pilot area.

Step Three: Feasibility Tool

This funding program includes a financial feasibility tool and guide to evaluate project funding proposals and to improve eligibility for senior government capital funding. The financial feasibility tool is a fillable spreadsheet that will auto-calculate to help demonstrate project viability. It also serves as an educational resource and “readiness tool” for non-profits and other advocates exploring affordable housing projects.

Step Four: Invitation to Submit Application

Project proponents who have submitted an EOI will be contacted and invited to submit full applications and a completed financial feasibility tool demonstrating a reasonable likelihood of project viability, with a minimum Debt Service Coverage of 1.1.

The RHPDF application form will be posted after June, 2025 and will include a documentation checklist. Proponents will need to upload documentation to the CRD application portal.

CRD will accept and review applications on a continuous basis after June 02, until funding is fully allocated. During the assessment of your application, CRD will:

  • Assess your eligibility
  • Assess your viability
  • Confirm the amount of funding your project will receive

Step Five: Funding Approval and Agreement

  • Signed CRD Rural Housing Program Pre-Development Funding Program Grant Agreement

Step Six: Reporting

  • Within one year of the funding award, applicant to provide CRD with a completed report (CRD form) outlining the funds were used as promised and including an update of the project’s next steps towards completion.
  • Extensions will be considered upon request. Keep us in the loop!

Why a Rural Housing Pilot Program?

The RHP pilot is a response to the requests from the SGI Community Economic Sustainability Commission (SGI CESC) and the SSI Local Community Commission (SSI LCC) for the CRD to assist with local housing. The coordination on SSI and SGI is funded by the SGI Tourism Partnership (SGITP), which is the official destination marketing organization for these areas and receives funding from the province through online accommodation providers on the islands. This financial support allows the CRD to have staff that can manage the program, seek out further partnerships, and provide strategic advice to help project proponents with the complex regulatory environment.

Community Engagement

In 2024, CRD conducted community engagement with property owners to test the potential uptake of the ADU Incentive Program, and with non-profit housing sector in both the SSI and SGI EAs to better understand this sector’s unique project-specific needs. A What We Heard Report is available here.

For questions or to inquire about applying to CRD Rural Housing Pilot Program please email: CRD Rural Housing: ruralhousing@crd.bc.ca

Subscribe for updates!

Page last updated: 11 Apr 2025, 09:57 AM