P.E.I. government rolls out relief programs for landlords

The Island government is launching three new programs to support landlords during the 2023 rental freeze, with applications opening later next week.

The first is a Rental Unit Property Tax Subsidy that will lower the cost of provincial property taxes payable in 2023. Owners of rental units in agreements longer than six months, as of Dec. 31, 2022, may be eligible for financial property tax benefits. The three categories are:

• Owners of long-term units where heat is included in the rent and oil is the primary source of heat will receive a subsidy of $0.75 per $100 of tax-assessed value.
• Owners of long-term units where heat is included and a source other than oil is considered the primary heat (for example, electric) will receive $0.375 per $100 of tax-assessed value.
• Owners of long-term rentals where heat is not included in the rent will receive a subsidy of $0.375 per $100 of tax-assessed value.

Eligible applicants who heat with oil as the primary source will have their property tax subsidy capped at three per cent of annual rental income. Those with other primary heat sources will have their subsidy capped at two per cent.

Multi-unit Residential Building Rebate Program

The P.E.I. government is also expanding the Multi-Unit Residential Building Rebate Program, through the Department of Environment, Energy and Climate Action.

The province said the rebate program will increase the value of heat pump and insulation rebates, add a rebate on electric hot water heaters, remove limits for duplexes and create greater access to heat pumps for apartment building owners. It includes:

• Increased rebate amounts for mini split air source heat pumps (ASHPs) from $1,200 to $2,000.
• Increased rebate on insulation from $25 per square foot for rebate value to $65.
• Introduce a rebate of up to $2,500 on electric hot water heaters.
• Remove lifetime limits on rebate amounts per building and remove yearly limits for air source heat pumps and window rebates.
• Increased yearly rebate limits per building from $2,500 per unit for row houses and $1,500 per unit for apartments to $10,000 per unit for both.
• Remove limits from rental duplexes and treat those buildings as a regular single-detached homes.

Rental Property Heating Program

Finally, the province is introducing a Rental Property Heating Program. It will have a $10-million budget from which rental property owners can borrow money to purchase and install equipment eligible for energy rebates through Efficiency P.E.I.

Finance P.E.I. is providing the financing per rental property for the upgrades over a 10-year period, with the Department of Environment, Energy and Climate Action reimbursing Finance P.E.I. for the interest portion on the loans.

Essentially, the province said, these are zero-interest loans for the borrower.

Applications for all programs will open on Friday, Jan. 13, 2023. Property owners must submit applications to each program separately, and each property separately, if applying for supports for more than one rental property.