Laneway Suites

Toronto, Ontario

What is a laneway suite? Where can you build a laneway suite in Toronto? Is my property eligible to build a laneway suite? What incentives are there to build a laneway suite? How do you build a laneway suite? And what is the approximate cost to build a laneway suite? BVM Contracting is here to answer all of these questions in this blog!

As of August 2018, the City of Toronto has allowed the construction of laneway suites in Toronto. This is an exciting new plan to help increase the number of available housing stock in the City and try to make the City of Toronto more accessible and affordable. Learn how you can take advantage of your laneway’s untapped income potential and create a second unit/secondary suite on your property.

What is A LANEWAY SUITE?

A laneway suite is a self-contained living accommodation for a person or persons living together as a separate single housekeeping unit, in which both food preparation and sanitary facilities are provided for the exclusive use of the occupants of the suite, in a detached building that is ancillary to a residential building on the same lot, and is located in the rear yard abutting a public lane. Laneway housing is considered to be a second unit/secondary suite.

WHERE CAN YOU BUILD A LANEWAY SUITE in Toronto?

Further than the obvious answer of “in a laneway”?

Initially, laneway suites were constrained to the Toronto and East York Districts, as they were the most dense in laneway properties. Although, as of Summer 2019 the construction of laneway suites is allowed across the entire City of Toronto. The only restricted area in the city is bounded by Avenue Road, the Canadian Pacific (CP) Limited rail corridor, Yonge Street, Rosedale Valley Road, Sherbourne Street, Bloor Street East and Bloor Street West.

What are the Design Requirements for Laneway Suites?

To keep it really simple the following image shows the major design requirements for being able to build a laneway suite on your property.

The key aspects of the design to make note of are are the requirements for setbacks from property lines, separation from the principal residence, and soft landscaping for the property. There are also specific guidelines for building height based on the size and layout of your existing dwelling, and restrictions on the shape (or even existence) of the second storey if the Laneway Suite is too close to the Principal Residential Building.

There are certain aspects of the by-law that offers flexibility in design of the laneway suites, namely:

• The floor area of Laneway Suites do not count against the total floor area allowed on the lot.

• Laneway Suites do not require a parking space for cars, although they do require a minimum of two bike parking spaces within the build-able footprint allowed by the setbacks (inside or outside the building). In addition to this, any lot containing a Laneway Suite does not require parking spaces at all. So, there’s no need to worry about getting into trouble if you give up a garage parking space to create a suite.

BVM Contracting will be able to complete an on-site evaluation of your property to determine if it qualifies for the construction of laneway housing! Contact us to set-up a meeting!

Incentive Programs for The Construction of Laneway Suites

1) Development Charges (DC) Deferral Program for Ancillary Secondary Dwelling Units

Since the development charges in the City of Toronto are not cheap, the City of Toronto was able to create a deferral program that allows homeowners building an ancillary secondary unit (AKA a laneway suite) to defer the development cost of the laneway suite, as long as the suite remains apart of the property and is not severed into a new property within 20 years of the issuance of the building permit.

The DC Deferral Application can only be filled out (click here to open the form) after you apply for a building permit for the construction of a laneway suite. Additionally, if you intend to apply for this program, please do not pay your development charges as the City will not be able to credit back the fee.

To learn more about who can apply and how to apply reach out to a BVM Contracting Renovation Consultant to start the conversation!

2) Affordable Laneway Suites Program

The Affordable Laneway Suites Pilot Program provides funding in form of a forgivable loan of up to $50,000 for eligible property owners developing a laneway suite. The loan will be forgiven in 15 years from the date when the first tenant occupies the laneway suite. A forgivable loan is essentially a loan that is voided if all of the terms of a particular agreement are satisfied. In this particular scenario, the rent being charged cannot exceed the City of Toronto Average Market Rent, by bedroom type at any time during the 15 year affordability period, as reported annually by Canada Mortgage and Housing Corporation (CMHC). Make sure that you understand the implications of charging average market rent, as it may lead to less rental income and also constrain you to only renting to long-term tenants.

It is important to note that, just like the DC Deferral Program, you will need to have applied for a building permit before filling out the form (which can be found here). You will also need to be approved for the DC Deferral Program, so ensure that you fill out the DC Deferral Application form as soon as possible after you apply for your building permit!

To learn more about if the affordable laneway suites program works for you reach out to a BVM Contracting Renovation Consultant to start the conversation!

The Process of Building a Laneway Suite with BVM Contracting

Once you have your building permits completed and approved for the project, the following process will be taken to build the laneway suite.

• Demolition/Excavation: Before the process of building the laneway suite is started, the existing structure needs to be demolished. BVM Contracting will be able to efficiently demolish your existing structure and remove the debris using our in-house disposal services. The excavation will also be completed for the location of the laneway suite and a trench will be run in between the primary residence to the laneway suite to run the infrastructure out to the new secondary laneway suite.

• Utility Infrastructure Run-outs: Once the slate is blank, this is the time to run all of the underground infrastructure to the location where the laneway suite is being constructed. More often than not the underground infrastructure (drains, plumbing, and natural gas) will need to be trenched from within your home out to the laneway suite. BVM Contracting will determine the location of all of the infrastructure on the property to determine the most cost effective way to run everything out to the laneway suite.

Note about electrical: You have the choice to install a separate meter or use your primary residence’s existing infrastructure to run the electrical out to the laneway suite.

• Foundation Creation: The building permits outline the type of foundation needed to support the load of the new laneway suite. BVM Contracting will ensure that the concrete work is completed quickly and efficiently to minimize the effect on laneway access to your fellow laneway-using neighbours. The foundation will be poured and underground infrastructure will be brought in once the foundation work is completed.

• Rough Framing: Using our warehouse conveniently located in the City of Toronto, we are able to build the structure of the laneway offsite to minimize the disturbance in the laneway and the amount of framing material stocked on site. We then transport the components of the laneway structure to your property to be assembled within 2-3 days depending on the size and complexity of the structural detail for the home.

• Roofing, Windows/Doors, and Exterior Finish: To enclose the structure and make it weather-resistant, the roofing is completed, windows/doors are installed, and exterior finish is installed. The exterior windows/doors and finish are then sealed to allow for a water-resistant finish.

• Rough-in Work (electrical, plumbing, and HVAC): Usually as the exterior is being finished the interior of the laneway home or suite is being roughed-in for electrical/HVAC/plumbing. All plumbing supply lines and drains (for toilets, sinks, showers, bath tubs, hot water tank, etc.), electrical wiring (for potlights, ceiling lights, kitchen lighting, exterior lights, receptacles, baseboard heating etc.), and HVAC lines (for heat pumps, air conditioner, gas lines, etc.) are installed so that they can be insulated and dry-walled over.

• Insulation & Drywall: Once the plumbing, HVAC, and electrical inspections are passed, it is now on to insulating the home. Ensure that the walls and attic are well insulated, and if you have a garage under the laneway suite ensure that the floor joists are insulated as well. If you are using both levels for livable space, it is recommended to insulate the concrete slab before installing flooring. You could even consider hydronic heating on the main level to help heat the entire suite.

• Flooring Installation: Hardwood (solid or engineered), vinyl, tile, or laminate flooring will be installed based on the client’s specifications.

• Finish Carpentry & Stairs: Once the insulation and drywall work is completed, it is time to complete the finish carpentry work (baseboard, shoemould, casing for windows and doors, hanging the interior doors, etc.) and installation of the stairs.

• Finishes: This is the last step and usually includes the following items:

  • Painting

  • Vanity install

  • Toilet install

  • Faucet/Tap install

  • Kitchen cabinet and counter top install

  • Staining

  • Light fixture install

  • HVAC fixture install (supply and return vents)

The Cost to Build a Laneway Suite in Toronto

The cost to build a laneway suite will vary depending on the following variables:

• Laneway access

• The location of infrastructure on the property (electrical service, sewers, drains, plumbing, and natural gas).

• The proposed square footage of the laneway suite.

• Access to primary residence infrastructure (to provide connection to electrical, sewers, drains, plumbing, and natural gas).

• Exterior finishes (vinyl siding v.s. stucco v.s. Maibec v.s….)

• Interior finishes (IKEA v.s. custom cabinets, vinyl versus hardwood, etc.)

It is safe to assume though that the cost to build and finish a laneway suite will be anywhere from $300 000-$600 000. Let BVM Contracting visit your property to determine if your property qualifies and what the approximate cost will be based on the above variables.

It is important to note that laneway suites will also increase the value of your property, since secondary suites provide extra income to the property that can be used to subsidize a future buyer’s mortgage.

Conclusion

Laneway suites will be a very popular and potentially lucrative investment opportunity for any home owner that owns a property with an eligible laneway property. Let BVM Contracting, an experienced new home builder in Toronto, help you evaluate the return on investment and competitively budget your project so that you know the exact cost to build a laneway suite on your property.

Contact us to speak with an experienced residential renovation company and get your laneway home build experience started! We will be able to walk you through the process of completing the project, from concept to completion.

About BVM COntracting

BVM Contracting is a full-service General Contractor or Home Builder located in Toronto. We provide home renovation and building services for major home renovations (kitchen renovations, bathroom renovations, basement renovations, full interior renovations, home additions, and new home construction). Our goal is to help guide our clients through the process of renovating their home, from concept to completion.

Further than providing General Contracting and Project Management for major home renovations, we also offer value-added services such as renovation financing, renovation rebate consultations and services, building permit and design services, smart home installation services, and real estate investor services.

To learn more about our offering by visiting our services page.