Salt Spring Island property owners can now apply for rebates of up to $40,000 to help cover the cost of building a secondary suite or cottage, as long as they agree to rent it out at affordable rates for at least five years. The new incentive comes from the Capital Regional District’s Rural Housing Program, which started accepting applications on July 16.
The funding covers up to 50 per cent of building costs and is meant to boost the number of year-round rental homes in a community where only 51 per cent of houses are lived in full-time. Rental rates on the Southern Gulf Islands shot up between nine and 27 per cent from 2018 to 2021, while home prices have jumped 35 to 137 per cent since 2016.
An estimated 1,695 households on Salt Spring are living in housing that is too expensive, too small, or in poor condition, with no other options available. A 2025 count found 137 people experiencing homelessness, down from 165 in 2023, when the island had the highest per-capita rate of homelessness in British Columbia.
The rebate program is part of a three-year pilot launched in 2025 for the Southern Gulf Islands and Salt Spring Island Electoral Areas. Applications will be taken on a rolling basis until all funds are handed out. Homeowners who are interested should check with the Islands Trust to make sure their property meets zoning rules for a secondary suite or cottage.
The Rural Housing Program also includes a pre-development fund for organizations planning multi-unit affordable housing projects, with a second intake deadline of August 31, 2026. Coordination of the overall program is funded by the Southern Gulf Islands Tourism Partnership through the two per cent Municipal and Regional District Tax collected from short-term accommodation providers.
