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Cost & Grant Analysis for a Two‑Storey In‑Law Suite

Halifax Regional Municipality · June 2025
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1 · Project Overview

Scope: Construct a detached or attached secondary suite ("in‑law suite") on a primary‑residence lot.
Form factor: Two story, total conditioned floor area ≈ 968 ft² (90 m²) – meets HRM height (≤ 7.7 m suburban) and floor‑area caps.
Finish level: Medium (fibre‑cement or board‑and‑batten exterior, quartz countertops, hardwood/LVT flooring, triple‑pane north & south windows, two‑zone ductless mini‑split, tiled shower).
Target occupant: A senior family member ⟹ qualifies the build for the federal Multigenerational Home Renovation Tax Credit.
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2 · Construction‑Cost Assumptions

Item
Unit Cost (CAD)
Rationale
Base build – medium spec
$160 – $190 / ft²
Altus Group Canadian Cost Guide 2025, Small Residential; corroborated by local GC quotes Q1‑2025.
Gross floor area
968 ft²
HRM backyard‑suite limit = 90 m².
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Calculated Baseline Cost

Low end: 968 ft² × $160 = $154,880
High end: 968 ft² × $190 = $183,920
(Figures exclude HST, soft costs, land, and utility‑connection fees that are handled by the HRM incentive below.)
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3 · Stackable Grants & Credits (2025)

Program
Admin Level
Form
Max Amount
Key Conditions
Second‑Unit Infrastructure Grant
HRM
Cash
$10,000
Covers new lateral/onsite water & wastewater work. Primary dwelling must be owner‑occupied; suite can’t be short‑term‑rented for 5 yrs; occupancy by 11 Oct 2026.
Halifax Water Fees Grant
HRM
Cash
$2,762.96
Offsets Regional Development Charge and backyard‑suite inspection fee. Same covenant terms as above.
Secondary & Backyard Suite Incentive
Province of NS
Forgivable loan
$40,000 (50 % of costs)
Loan forgiven after 5 yrs if suite rents ≤ 80 % CMHC Avg. Market Rent and remains long‑term housing.
Multigenerational Home Renovation Tax Credit
Federal (CRA)
Refundable tax credit
$7,500 (15 % of first $50k)
Suite must house a senior (65+) or a relative eligible for DTC and be a self‑contained dwelling.
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4 · Cost Breakdown Scenarios

4.1 Low‑Range Medium Finish (CA $160 / ft²)

Step
Transaction
Amount (CAD)
Running Net Cost
Baseline build
—
154,880
154,880
HRM Infrastructure Grant
Credit
–10,000
144,880
HRM Water Fees Grant
Credit
– 2,762.96
142,117.04
NS Forgivable Loan
Loan forgiven†
–40,000
102,117.04
CRA MHRTC
Refund (tax time)
– 7,500
94,617.04
† 50 % of eligible costs up to $40k; shown here at cap.
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4.2 High‑Range Medium Finish (CA $190 / ft²)

Step
Transaction
Amount (CAD)
Running Net Cost
Baseline build
—
183,920
183,920
HRM Infrastructure Grant
Credit
–10,000
173,920
HRM Water Fees Grant
Credit
– 2,762.96
171,157.04
NS Forgivable Loan
Loan forgiven
–40,000
131,157.04
CRA MHRTC
Refund
– 7,500
123,657.04
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5 · Key Findings

Total public benefit: Up to $60,263 (≈ 33 % of gross cost at low‑range, 29 % at high‑range).
Owner cash exposure after all incentives: • ≈ $95k on a $155k build (160 / ft²) • ≈ $124k on a $184k build (190 / ft²).
Breakeven rent/back‑pay: At 80 % of 2025 CMHC average ($1,100 / mo est.), the owner recoups the remaining $95k in ≈ 7.2 yrs, before considering appreciation or energy‑savings vs. baseline.
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6 · Next Steps & Recommendations

Confirm zoning envelope against specific lot (coverage, parking, rear setback) before design freeze.
Pre‑apply to the NS loan program—costs incurred prior to approval are ineligible.
Stage cash flow so municipal grants land at plumbing rough‑in and loan‑forgiveness clock starts at occupancy.
Document everything: save paid invoices & pictures for MHRTC filing.
Value‑engineer envelope upgrades (e.g., R‑28 walls, better HRV) while labour is on site; incremental cost is lowest now.
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Prepared for: Matt Cooper ·
Disclaimer: Figures are budgetary estimates derived from 2025 municipal, provincial and federal program guides and prevailing construction‑cost data. Confirm grant terms and market pricing prior to tender.
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