Canadian Lawyer

w w w . C A N A D I A N L a w y e r m a g . c o m A P R I L 2 0 1 6 21 econdary suites have long been part of the underground econo- my. But efforts to densify popula- tions, make affordable housing more readily available, and allow homeowners to generate additional income are seeing their legitimization in pockets across the country. Basement apartments, in-law, and granny flats within a single family dwelling, as well as garden and laneway suites — separate units on the same property — are being recognized in municipalities through bylaw and code changes and even provin- cial initiatives. Some municipalities offer financial incentives to create them, while others are providing a break in inspection or application fees to ensure their safety. And others still do not permit them at all. Units described as nanny or granny rooms in home basements in classified advertisements or real estate listings often meant that they didn't necessarily conform to regulations. The listing might include a caveat such as "vendor does not warrant retrofit status." So while "it looks like a basement apartment [and] feels like a base- ment apartment, it's not legal," observes Mark Weisleder, a partner with Real Estate Lawyers.ca LLP in Toronto. Key to their legitimization is ensuring their safety by adhering to regulations. But, if the municipality allowed the extra suites, it often had extensive demands that would require detailed and costly inspections. So many owners just skipped it and took the risks. "More and more cities are legalizing basement apartments, but they're not mak- ing it so easy," says Weisleder. That is changing in some areas. Sev- eral municipalities, such as Calgary, are acknowledging secondary suites meet an important need in the rental market and are driving efforts to make them safe and legal. The additional units, usually devel- oped within a single family dwelling, while filling a demand for renters, can make home ownership a reality for some who may not otherwise be able to afford it. With secondary suites making up as much as one-fifth of its available rental housing, the vast majority of them illegal, the city of Calgary decided it was time to introduce initiatives to recognize them and make them safe. The city launched a pilot program last fall allowing many homeown- ers to skirt development charges as they build or retrofit additional suites. It's also created a registry to acknowledge legal secondary suites that do meet the require- ments. "Our mantra really is to bring in as many existing illegal suites to make them legal where we can. Our aim is to have as many legal and safe secondary suites as possible," says Cliff de Jong, Calgary's co- ordinator of issues management. Canada Mortgage and Housing Corp. has recognized a need for homeowners as well. Last fall, it increased the limit to allow up to 100 per cent of gross rental income derived from an owner-occupied, two-unit property when applying for a mortgage insured by CMHC. By add- ing that rental income to their traditional R E A L E S TAT E FAYE ROGERS Making it legal Bylaws and code changes across the country are slowly legitimizing granny fl ats and basement suites to encourage densifi cation. By Marg. Bruineman S

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