CRA indicates that the multigenerational home renovation credit rules do not require that the secondary unit be built as a renovation to an existing unit

In the context of an individual constructing a family home with a semi-attached garden suite in which the individual’s parents will live, CRA indicated that there is no requirement, in order for the multigenerational home renovation tax credit to be provided under s. 122.92, that the “secondary unit” (the garden suite) be built and occupied subsequently to the occupancy of the “eligible dwelling” (the main residence), so that, for instance, both could be built and occupied at the same time. However, there remained the requirement that there must be a reasonable expectation that both the “qualifying individual” (i.e., the parents) and the “qualifying relation” (i.e., the individual) will ordinarily inhabit the housing unit (including the secondary unit) within 12 months after the end of the renovation period.

Neal Armstrong. Summary of 13 March 2023 External T.I. 2023-0961401E5 under s. 122.92(1) – qualifying renovation.