If you are a builder and you are considered to be the seller and recipient of a subsidized residential complex, you cannot use the same formula for calculating the tax to remit on the construction, purchase or substantial renovation of the complex as you would for other types of residential complexes.

Instead, you must remit the greater of the following amounts:

• the total tax calculated on the fair market value (FMV)
• the total tax paid on the purchase of and improvements to the residential complex

This formula is used if you received or expect to receive a subsidy for the residential complex, and you lease at least 10% of the residential units in the complex to

• youths
• seniors
• students
• persons with a disability
• persons in distress or in need of assistance
• persons whose eligibility for occupancy of the residential units or for reduced lease payments is based on their means or income
• persons who pay no rent for the residential unit or who pay less than what should be paid for a similar residential unit