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| This archived statute consolidation is current to November 5, 2001 and includes changes enacted and in force by that date. For the most current information, click here. |
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Contents |
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Section |
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1 In this Act:
"cooperative residence" means a self contained dwelling unit, in a housing project consisting of self contained dwelling units, and owned by a cooperative association incorporated under the Cooperative Association Act;
"eligibility committee" means the committee established under section 15;
"grant" means a grant under this Act;
"loan" means a loan under this Act;
"manufactured home" means a manufactured home as defined in the Manufactured Home Act;
"manufactured home park" means land used or occupied by a person to provide spaces for accommodating one or more manufactured homes owned or being purchased by other persons where a charge or rental is imposed for use of that space, and the manufactured home is assessed and taxed in the name of its owner or purchaser;
"registrar" means a registrar under the Land Title Act or the registrar under the Manufactured Home Act, as the context requires;
"residence" means a self contained dwelling unit of a kind referred to in section 7 or of a kind prescribed by regulation.
2 (1) A grant or loan for a residence may be made only to a person who purchased or completed construction of the residence after June 30, 1976.
(2) A grant for a cooperative residence may be made only to a shareholder of the cooperative association who purchased the shares after June 30, 1976.
3 (1) A person is not entitled to a grant or a loan for a residence unless
(a) the person and the person's household occupy the residence as their ordinary place of residence, and
(b) the application for the grant or loan is made within one year after the person first so occupies the residence.
(2) Despite subsection (1) (b), no person is entitled to a loan under this Act unless
(a) the person purchased, on or before June 15, 1989, the residence for which application is being made, and
(b) application for the loan is made on or before September 15, 1989.
4 (1) A person is not entitled to a grant or a loan unless the person or the person's spouse
(a) is a Canadian citizen or permanent resident of Canada, and
(b) was either born in British Columbia or has ordinarily resided in it for a continuous period of at least 5 years at any time or for the 2 years immediately before purchase.
(2) The citizenship or permanent resident of Canada requirement does not apply to the 2 year residence qualification.
5 Subject to the regulations, a person who is in receipt of financial assistance under a National Housing Act (Canada) program for a residence is not qualified under this Act for that residence.
6 Subject to the regulations, a grant or loan must not be given to a person who has formerly been given either a grant or a loan under this Act, the Department of Housing Act, 1973, the Provincial Home Acquisition Act, or a leasehold mortgage under the Home Conversion and Leasehold Loan Act.
7 Subject to this Act and the regulations, a loan may be made to a person who is the owner in fee simple, or of another interest authorized by regulation, in a strata lot under the Condominium Act, or in a parcel of land, shown separately on a land tax roll, and having on it not less than one self contained dwelling unit, the cost and size of which in either case are within the limits prescribed for the class of residence it is and for the region of British Columbia where it is located.
8 A loan for a residence may be made only to a person who has an equity of at least the greater of $2 000 or 5% of the cost of the residence.
9 (1) A person obtaining a loan must give to the government a second mortgage on the residence.
(2) The second mortgage must be
(a) satisfactory to the minister, and
(b) in the form and containing the terms required by the regulations.
10 (1) A registrar must not accept for registration, unless authorized by regulation, a disposition of the fee simple, or a sublease or assignment of lease of land with a mortgage under section 9 registered against it.
(2) A registrar must not file a transfer, or agreement for sale, of a manufactured home if a mortgage under section 9 is registered against it.
11 (1) The interest rate specified in a mortgage must be the lesser of
(a) the interest rate set by regulation for the date the application is received, and
(b) the rate of interest required for insured loans under the National Housing Act (Canada).
(2) Despite subsection (1), the Lieutenant Governor in Council, by regulation, may reduce the rate of interest of a mortgage or a class of mortgages given to secure a loan granted under section 7 of this Act.
(3) Subsection (2) applies to all mortgages given to secure a loan granted under section 7 of this Act, including mortgages given before this section came into force.
(4) Subject to subsection (1), a mortgagor who qualifies under the regulations must repay a mortgage at the eligible payment rate approved by the eligibility committee under the regulations.
(5) The difference between the payment required by the mortgage at the specified interest rate and the eligible payment is a deferred loan that is to be credited to the mortgage account and be accumulated in a special account that does not bear interest.
12 (1) If a mortgagor disposes of his or her interest in the residence, or, by refinancing, increases his or her indebtedness secured against the residence, the mortgagor must pay to the minister the balance outstanding on the mortgage account and the total of the deferred loan.
(2) Subsection (1) does not apply if the eligibility committee is satisfied that the refinancing provides protection for the government's security in the residence.
13 (1) To protect the government's security interest in a residence, the minister may
(a) exercise the same rights and remedies that any other mortgagee may exercise, including purchase of prior encumbrances, foreclosure and purchase of the mortgaged residence, and
(b) compromise or write off all or part of an indebtedness.
(2) Without limiting subsection (1), the minister may issue and file with the Supreme Court a certificate if
(a) a mortgage given under section 9 is removed from the title of the mortgaged residence
(i) under or as a result of an order of a court of competent jurisdiction, or
(ii) as a result of any act or omission of any person, and
(b) the government has not received payment in full of the principal, interest, taxes, costs and expenses payable under the mortgage.
(3) A certificate referred to in subsection (2) must state
(a) the amount that must be paid to the government under the mortgage in order to provide the government with payment in full of the amounts referred to in subsection (2) (b), and
(b) the name of each person liable to pay.
(4) On filing, a certificate has the same effect and proceedings may be taken on it as if it were a judgment of the court for the recovery from the person named of a debt due to the government in the amount certified.
14 (1) Subject to the regulations, a first home grant in the prescribed amount may be made to a person who, on or after July 18, 1979, purchases a residence that is
(a) of a prescribed kind,
(b) within the limits of cost and size prescribed by the minister for residences of its class and region, and
(c) the first residence he or she has ever owned or purchased.
(2) Subject to the regulations, a family first home grant in the prescribed amount may be made to a person who
(a) on or after July 18, 1979, purchases a residence that meets the requirements of subsection (1), and
(b) is at the time of the application the parent or guardian of at least one child under age 19 residing with the person at the residence.
15 (1) The minister may appoint 3 persons as members of the eligibility committee.
(2) Subject to this Act and regulations, the eligibility committee must
(a) determine whether an applicant is entitled to a grant or loan,
(b) determine the amount of the grant or loan, and
(c) perform other duties designated by the minister.
16 (1) With the approval of the Lieutenant Governor in Council, the minister may set minimum and maximum costs and sizes of residences for eligibility for grants and loans.
(2) Under subsection (1) the minister may set different costs and sizes for different parts of British Columbia, for different classes of residences and for new or older residences.
17 (1) Money required for the purposes of this Act may be paid out of the consolidated revenue fund.
(2) The cumulative total of amounts paid out under this section and section 17 of the Home Conversion and Leasehold Loan Act must not exceed the cumulative total of the following amounts:
(a) the cash balance of the fund established under section 7 of the Provincial Home Acquisition Act, S.B.C. 1967, c. 39, as at March 31, 1982;
(b) amounts paid into the consolidated revenue fund after March 31, 1982 in respect of grants, loans and mortgages made under this Act, the Home Conversion and Leasehold Loan Act and the Provincial Home Acquisition Act, S.B.C. 1967, c. 39.
18 A person who receives a grant or loan to which the person is not entitled under this Act must repay the amount promptly as a debt due to the government.
19 (1) A person who applies for and receives a grant or loan to which the person is not entitled under this Act commits an offence.
(2) A person who commits an offence under subsection (1) is liable on conviction to a fine of not more than $2 000.
20 (1) The Lieutenant Governor in Council may make regulations referred to in section 41 of the Interpretation Act.
(2) Without limiting subsection (1), the Lieutenant Governor in Council may make regulations as follows:
(a) prescribing the method of securing grants
(i) on residences by filing in the land title office,
(ii) on manufactured homes by filing in the manufactured home registry, and
(iii) on cooperative residences and residences on Crown land, instead of filing in the land title office;
(b) defining words and expressions used but not defined in this Act;
(c) setting the maximum amount of grants or loans.
Copyright (c) 2001: Queen’s Printer, Victoria, British Columbia, Canada