The Capital Regional District (CRD) Rural Housing Program is a three-year pilot initiative serving the Southern Gulf Islands and Salt Spring Island Electoral Areas. Launched in 2025, the program focuses on increasing the supply of affordable rental housing through three program streams:
- The Accessory Dwelling Unit Rebate Incentive provides financial incentives to homeowners to create new long-term rental housing through secondary suites or detached units.
- The Pre-Development Funding stream addresses gaps in early-stage financing for smaller non-profit housing organizations advancing purpose-built, multi-unit affordable housing projects.
- The Coordination stream supports housing solutions suited to rural island communities through focused inter-agency coordination and education.
Accessory Dwelling Unit (ADU) Rebate Incentive Program
Opportunities for Homeowners
The Rural Housing Program offers rebates to incentivize homeowners to build a small, self-contained secondary suite or cottage (Accessory Dwelling Unit) on their property that are rented at below-market rates.
If you live in the Southern Gulf Islands or Salt Spring Island, you may be eligible for a rebate for 50% of construction costs up to a maximum of $40,000 per project.
How it works
- Apply before starting construction of an Accessory Dwelling Unit (ADU).
- Build the ADU within approved timelines.
- Agree to rent the unit at non-market (below-market) rates for at least five years.
- Receive rebate to offset your building costs after you receive an occupancy permit.
Rural Housing Pre-Development Funding
Planning a larger housing project?
The second intake of the Rural Housing Pre-Development Funding (RHPDF) program is open. The RHPDF program provides funding for pre-development costs for purpose-built, multi-unit affordable housing projects.
The CRD is seeking new expressions of interest (EOI) from housing organizations with viable proposals for projects in the Salt Spring and Southern Gulf Island Electoral Areas. Project proponents who have submitted an EOI will be contacted and may be invited to submit full applications. Proponents must demonstrate a reasonable likelihood of project viability. Please send your Expression of Interest to ruralhousing@crd.bc.ca by August 31, 2026.
How it works
- Review the RHPDF Application guide [PDF/795KB] and Pre-Development Financial Feasibility and Readiness Tool [XLSX/109KB] to understand program requirements.
- Submit an Expression of Interest using the Expression of Interest Form [PDF/96KB].
- 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.
- CRD will accept and review applications on a continuous basis until funding is fully allocated.
Collaboration and support
Inter-agency coordination and support to non-profit housing providers is a key component of the RHP pilot project. For questions or to inquire about applying to CRD Rural Housing Pilot Program please email: CRD Rural Housing: ruralhousing@crd.bc.ca
More about the Rural Housing 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 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.
In 2024, CRD conducted community engagement with property owners to test the potential uptake of the ADU Rebate 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.
