FAQs

What is a Multiplex or SSMUH?

A Multiplex, also referred to as a ‘small scale multi unit house-SSMUH’ is a housing option that allows multi-unit homes, specifically, stratified units like a duplex of triplex to be built on a single family lot. Multiplex housing options can consist of a multitude of housing formats which could include a variety of elements such as a primary residence, rentals, market housing and/or family estate planning.

Why is stratification such a big deal?

This is probably the most critical element of the Multiplex. A multiplex is defined as separate, stratified units (each unit on the single lot has a specified legal owner and each unit can be sold and bought apart from any other unit on the lot). It must be noted that there are several cities with SSMUH zonings allowing multiple units, but stratification is restricted to a single property owner (multiple units permitted on a property, but on title, all the units are recognized as a single entity and cannot be sold independently).

What about financing for the project?

Financing is specific to each site and individual owner/investor. But generally, a property that is clear title and strong proforma, is seen as having a strong viable potential. Projects under 4 units may not require a commercial loan. When considering a lender it is important to consider the rates, the terms and the construction loan’s fund distribution through the projects’ term. Most projects have large up front permitting and soft costs requiring payouts, and the terms need to realistically reflect the projects payment schedule. And even more importantly, all project costs including contingencies, realistic financing and potential extras and fees must be accounted for by the project’s owner, quantity surveyor and lender.

What should I do with my property?

Great question. Whether you are looking to sell or maximize your property, the first thing you need to do is talk to a TRUSTED professional and find out what your property’s zoning allows. This market is full of great builders, developers, realtors and architects that can provide educated answers, however, there also are a large number of individuals and companies that are unfamiliar with property zoning assessments. At Multiplex Living, we strive to be a trusted resource, that even in the event of us not participating in your specific project or sale, we endeavour to be found both trusted and reliable as a resource.

What is meant by “generational housing”?

In the context of a multiplex, generational housing provides a family the ability to divide their single family lot amongst members of the family, by building individual units in their preferred form. The strata title units could then be held by separate family members.

I want to build a multiplex, now what?

If your property is zoned for a multiplex, now you need to decide on what you want. Are you looking to develop and sell the whole lot, build and sell some of the units and live in one? Or maybe you have a great home, and have enough room to build a separate building as rental suites, or it is a rental property and you want to build new rental units. These are the questions you need to answer prior to starting. Once you have decided on direction, your project will require oversight or a consultant. A projects‘ success requires reliable financing, coordinated and intuitive design/permitting oversight and a reliable contractor. With that in mind, you will need to be realistic with your own available time and ability. Will you manage the complete project? Require only specific services? Will you be more hands off, or somewhere in between? We don’t need to be your final choice to have the conversation that helps you decide what best suits you.

What would it look like if a developer were involved in a co-development?

A developer would accept a portion of the projects cost and risks, and as such would equally expect to share in that portion of profits. An arrangement could include a corporate partnership and/or the developer being on title. Each developer will have specific requirements, and a property owner should always obtain legal council.

Is a micro-development the same as a multiplex.

Yes and no. A micro-development involves one or two single family lot(s), and provides 4-12 units. The developments are usually on larger lots, and a non-residence investor can participate. These projects can provide market housing, below market rentals and market rental housing, with many of these projects able to meet CMHC funding criteria.