Rural Homeownership Renovation Program
Rural Homeownership Renovation Program Eligibility Criteria Funding under the Rural Homeownership Renovation (RHR) program is available to eligible households purchasing homes through Manitoba Housing’s Rural Homeownership (RH) program. The house and property must be used as the purchaser’s primary residence. The RHR program is not available to houses being used as rental units. For purposes of determining eligibility under the RHR program, total household income means the total income (before tax) from all sources for all persons in the household 16 years of age and over, as defined by Statistics Canada. This gross annual household income must not exceed $60,221. Amount of Funding The funding available is in the form of an interest-free forgivable loan and is based on the cost of repairs and/or renovation. The maximum loan amounts available vary according to the region as follows:
Zone 1 Zone 2
Urban/Rural Market Areas Non-Market Areas
Mandatory and Eligible Repairs and/or Renovation Items
Required Modifications to Accommodate a Disability
Maximum Total Funding
$16,000
$16,000
$32,000
$19,000
$19,000
$38,000
The loan forgiveness will be earned in equal monthly instalments by the borrower over a period of five years, beginning the first of the month following the final disbursement of funding. Earning of forgiveness is conditional upon the homeowner maintaining continued ownership and occupancy of the dwelling and adhering to all other terms and conditions of the loan commitment. Homeowners must enter into an agreement to repay any unearned portion of the funding. If the homeowner sells, rents, transfers ownership, or otherwise ceases to occupy the dwelling at any time during the earning period of the forgivable loan, the unearned portion of the loan will become immediately due and payable. Eligible Costs A list of mandatory repairs is provided at the time of sale. These repairs must be complete in order to bring the property up to a minimum level of health and safety and extend its useful life by five years, assuming normal care and maintenance. Modifications required to accommodate a household member’s disability are eligible for funding under the RHR program. Other repairs and renovations may be complete under the RHR program, as deemed eligible by Manitoba Housing. Eligible costs include the cost of repair or renovation to the house, including materials, labour and applicable taxes, legal fees, interest on advances, building permits, certificates, application fees, engineering fees, insurance during construction, drawings and specifications.
Any and all work carried out prior to approval of the RHR program is not eligible. Also, repairs and renovations like the following will be ineligible: -
Installing or repairing a play structure or swimming pool.
-
Installing or repairing skylight windows, fireplace, hot tub or Jacuzzi, secondary heating system, heat pump unless it is the primary heating source, air conditioner, back-up generator, security system, air purification system, radio or television antenna or satellite dish, lawn sprinkler system, awnings or any equipment that is not permanently affixed to a home.
-
Modifications to a home to permit a non-residential use.
Homeowners may do their own labour provided that the work will be satisfactorily complete. Where homeowners do their own labour, RHR program funding will only be available to cover the cost of the materials; homeowners will not be paid for their labour. An inspection by Manitoba Housing staff, to confirm materials have been satisfactorily installed, is required prior to funding being disbursed for the cost of materials. General Program Information A conditional approval of the RHR program will be provided upon approval of the application form for the RH program. Prior to receiving final approval for the RHR program, acceptable quotes for repairs and renovation items and confirmation of the required owner’s equity are required. A minimum of two quotes should be obtained. Any quote within 10% of Manitoba Housing’s estimate may be selected by the homeowner. Exceptions to requiring quotes may be made at the discretion of Manitoba Housing, provided that measures are in place to ensure that the contract price submitted is reasonable, i.e. competitive and reflects the actual cost of the work to be complete. Quotes are required within three (3) months of possession date and construction is to be complete within nine (9) months after received final approval from Manitoba Housing. If work is not complete within this timeframe, the loan could become due and payable. Should delays be incurred or additional time is required, a letter requesting an extension should be submitted to Manitoba Housing for review. Manitoba Housing may approve an extension where the incomplete work is deemed to be for reasons beyond the control of the homeowner. Where a loan has been approved, appropriate loan security must be obtained prior to any loan funds being disbursed. Security for the funding is provided by way of a mortgage, promissory note, or other acceptable security for the five-year term of the loan commitment. Where cash equity or other financing is being provided, these funds must be contributed prior to the disbursement of RHR program funds. Evidence that such equity or financing were contributed must be submitted to Manitoba Housing prior to fund disbursements. Where there is more than one registered owner on title to the property, it is necessary for all such owners to sign both the application and security documents. Where there is one registered owner and the spouse of this owner has a matrimonial interest in the property, it is necessary for the owner and spouse to sign both the application form and security documents.
Disbursements will be processed based on invoice submission by the homeowner and inspections by Manitoba Housing. In all cases, advances must reflect the actual cost of work completed by repair or renovation item. Applicants should be advised that it is necessary to retain lien holdbacks.
Zone 1 Zone 2
Urban/Rural Market Areas Non-Market Areas
Mandatory and Eligible Repairs and/or Renovation Items
Required Modifications to Accommodate a Disability
Maximum Total Funding
$16,000
$16,000
$32,000
$19,000
$19,000
$38,000
The loan forgiveness will be earned in equal monthly instalments by the borrower over a period of five years, beginning the first of the month following the final disbursement of funding. Earning of forgiveness is conditional upon the homeowner maintaining continued ownership and occupancy of the dwelling and adhering to all other terms and conditions of the loan commitment. Homeowners must enter into an agreement to repay any unearned portion of the funding. If the homeowner sells, rents, transfers ownership, or otherwise ceases to occupy the dwelling at any time during the earning period of the forgivable loan, the unearned portion of the loan will become immediately due and payable. Eligible Costs A list of mandatory repairs is provided at the time of sale. These repairs must be complete in order to bring the property up to a minimum level of health and safety and extend its useful life by five years, assuming normal care and maintenance. Modifications required to accommodate a household member’s disability are eligible for funding under the RHR program. Other repairs and renovations may be complete under the RHR program, as deemed eligible by Manitoba Housing. Eligible costs include the cost of repair or renovation to the house, including materials, labour and applicable taxes, legal fees, interest on advances, building permits, certificates, application fees, engineering fees, insurance during construction, drawings and specifications.
Any and all work carried out prior to approval of the RHR program is not eligible. Also, repairs and renovations like the following will be ineligible: -
Installing or repairing a play structure or swimming pool.
-
Installing or repairing skylight windows, fireplace, hot tub or Jacuzzi, secondary heating system, heat pump unless it is the primary heating source, air conditioner, back-up generator, security system, air purification system, radio or television antenna or satellite dish, lawn sprinkler system, awnings or any equipment that is not permanently affixed to a home.
-
Modifications to a home to permit a non-residential use.
Homeowners may do their own labour provided that the work will be satisfactorily complete. Where homeowners do their own labour, RHR program funding will only be available to cover the cost of the materials; homeowners will not be paid for their labour. An inspection by Manitoba Housing staff, to confirm materials have been satisfactorily installed, is required prior to funding being disbursed for the cost of materials. General Program Information A conditional approval of the RHR program will be provided upon approval of the application form for the RH program. Prior to receiving final approval for the RHR program, acceptable quotes for repairs and renovation items and confirmation of the required owner’s equity are required. A minimum of two quotes should be obtained. Any quote within 10% of Manitoba Housing’s estimate may be selected by the homeowner. Exceptions to requiring quotes may be made at the discretion of Manitoba Housing, provided that measures are in place to ensure that the contract price submitted is reasonable, i.e. competitive and reflects the actual cost of the work to be complete. Quotes are required within three (3) months of possession date and construction is to be complete within nine (9) months after received final approval from Manitoba Housing. If work is not complete within this timeframe, the loan could become due and payable. Should delays be incurred or additional time is required, a letter requesting an extension should be submitted to Manitoba Housing for review. Manitoba Housing may approve an extension where the incomplete work is deemed to be for reasons beyond the control of the homeowner. Where a loan has been approved, appropriate loan security must be obtained prior to any loan funds being disbursed. Security for the funding is provided by way of a mortgage, promissory note, or other acceptable security for the five-year term of the loan commitment. Where cash equity or other financing is being provided, these funds must be contributed prior to the disbursement of RHR program funds. Evidence that such equity or financing were contributed must be submitted to Manitoba Housing prior to fund disbursements. Where there is more than one registered owner on title to the property, it is necessary for all such owners to sign both the application and security documents. Where there is one registered owner and the spouse of this owner has a matrimonial interest in the property, it is necessary for the owner and spouse to sign both the application form and security documents.
Disbursements will be processed based on invoice submission by the homeowner and inspections by Manitoba Housing. In all cases, advances must reflect the actual cost of work completed by repair or renovation item. Applicants should be advised that it is necessary to retain lien holdbacks.
