Residential Unit Development Incentive for Multi-Unit Residential

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The Residential Unit Development Incentive (RUDI) for Multi-Unit Residential Buildings announced by the Province of Prince Edward Island will provide financial support to encourage the development of newly constructed rental units by providing a diminishing property tax rebate for a period of up to five (5) years. 

How can I tell if I am eligible?

The RUDI for Multi-Unit Residential buildings will have targeted eligibility across PEI. Eligible properties include buildings of 24 rental units or greater in the cities of Charlottetown and Summerside, 12 rental units or greater in the towns of Stratford and Cornwall, and buildings of 4 units or greater in all other areas across PEI.

To be eligible, the applicant must construct an eligible building. An eligible building is one which:

  • Has at least 50% of its units with rental rates that do not exceed 30% of the median household income for the Province at the time of initial occupancy, or
  • Is a funding recipient of Finance PEI’s Housing Development Challenge.

Applicants can apply and receive a conditional approval before receiving their development and/or building permits, however applications must be received prior to the commencement of construction. Agreements will only be signed once the appropriate permits are issued.

New developments are encouraged to utilize carbon reduction footprint construction practices. A number of Provincially funded environmental and heating efficiency support programs are available at https://www.princeedwardisland.ca/en/information/social-development-and-housing/supports-for-landlords

Condominiums are not eligible.

The rental unit incentive is non-transferrable with the exception of an initial transfer from a developer to a landlord.

What are the incentive rates?

The RUDI is applicable to the provincial portion of property taxes payable on the non-commercial portion of a multi-unit residential rental property. Municipal property taxes, fire dues and IWMC fees are not included.

Developers will receive the following tax rebates through this initiative:

  • 100% rebate on provincial property tax in year 1
  • 80% rebate on provincial property tax in year 2
  • 60% rebate on provincial property tax in year 3
  • 40% rebate on provincial property tax in year 4
  • 20% rebate on provincial property tax in year 5

What do I need to apply?

The RUDI for Multi-Unit Residential Buildings will be open for applications for a period of three (3) years, beginning December 1, 2022.

Applicants can apply and receive a conditional approval before receiving their development and/or building permits, however applications must be received prior to the commencement of construction. Agreements will only be signed once the appropriate permits are issued.

Approved applicants must pay their property tax bills and submit a request for reimbursement for the provincial portion of property taxes paid. Property tax rebates will be withheld in situations where the taxpayer has an outstanding balance on their property tax account.

How do I apply for this funding?

Please check Residential Unit Development Incentive for Multi-Unit Residential Buildings for details and the application.

What is the application deadline?

Applications will be accepted until November 30, 2025. Late applications will not be accepted.

When will I receive the subsidy?

Approved applicants must pay their property tax bills and submit a certification that they continue to meet eligibility requirements and will then receive reimbursement for the provincial portion of property taxes paid. Reimbursement will be applied to the eligible property tax account.

The RUDI will be withheld in situations where the taxpayer has an outstanding balance on their property tax account.

The applicant may be required to submit documents supporting eligibility at the time of any reimbursement request (ex. Rent roll, owner information, etc.)

How to pay property tax payable: 

Islanders are reminded that property tax assessments for the 2022 tax year were mailed out on May 6, 2022, and payment installments for 2022 are due on May 31, August 31, and November 30, 2022.  Please check Property Tax Payments for more information on payment options.

If you do not receive your property tax assessment, please visit the Provincial Taxation Office, located on the 1st Floor of the Shaw Building at 95 Rochford Street, or call 902-368-4070.

Contact information

For more information about the Residential Unit Development Incentive for Multi-Unit Residential Buildings, contact the Provincial Taxation Office at 902-368-4070.


 

Date de publication : 
le 30 Novembre 2022