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HOMEOWNER RESIDENTIAL REHABILITATION ASSISTANCE PROGRAM (RRAP)

WHAT IS HOMEOWNER RRAP?

RRAP is the Residential Rehabilitation Assistance Program.

RRAP is a CMHC program for low-income homeowners.

RRAP provides loans, a part of which may not have to be paid back.

Loans are available to repair residences, including mobile homes and condominiums. Loans are not available to repair rental units.

RRAP is delivered by CMHC or an agent who may be from the municipality or another agency. This person is hired to deliver RRAP on behalf of CMHC and is referred to as the “RRAP delivery agent”.

TELL ME MORE ABOUT THE LOAN

© Your household income must be at or below the maximum for your area and household size, for you to qualify for a RRAP loan. Your loan amount will depend on the cost of the repairs and where you live. If you live in a rural area, the maximum loan is $25 000. If you live in an urban area, the maximum loan is $10 000. Urban areas are centres with a population over 2 500. Rural areas are centres with a population of 2 500 or less, or larger areas with dispersed popuiations.

DO | PAY BACK THE FULL AMOUNT?

e You may not have to pay back all of the loan. The forgivable portion of the loan depends on your adiusted income and the zone you live in. e The adjusted household income is the total household income minus certain deductions. e There are three zones: Zone 1 - The southern areas of Canada, Zone 2 - The northern areas, and Zone 3 - The farthest northern areas, the Territories, Labrador and Northern Quebec. MOST HOMEOWNERS LIVE IN ZONE 1. if your income is $13 000 or less and you live: - in Zone 1, the forgivable amount is up to $5 000. - in Zone 2, the forgivable amount is up to $6 250. - in Zone 3, the forgivable amount is up to $8 250. At incomes between $13 000 and $23 000 the forgivable amount decreases. Homeowners “earn” this forgivable amount by continuing to own and live in the house for five years. At $23 000 there is no forgivable amount, only a repayable loan amount.

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