Burlington’s ARU (Accessory Dwelling Unit) Incentive Programs

1. Forgivable Loans for Affordable Rental ARUs Interior/attached ARUs (including basement or garage conversions): up to $70,000 per new affordable rental unit. Detached ARUs: up to $95,000 per new unit, forgiven after 10 years if rent remains below set affordability thresholds. These loans are interest-free, require a 10-year affordability commitment, and must be formally registered on title. Annual compliance reports and permissible rent caps (e.g., Bachelor: $1,464; 1-bedroom: $1,733; 2-bedroom: $2,008; 3+ bedrooms: $2,330 for 2025) are required.

‍2. Grant to Legalize Existing Non-Compliant ARUs
A one-time grant of up to $15,000 is available to renovate non-compliant ARUs to legal standards (through permits). This does not require an affordability agreement or repayment conditions, unlike the forgivable loan.

‍3. Municipal Fee Waivers
Burlington will cover 100% of eligible municipal fees (e.g., zoning clearance, building permits, occupancy permit fees) for eligible ARU projects.

Source Material Can Be Found Here

1. Additional Dwelling Unit and Multi-Plex Housing Incentive ProgramOffers a 15-year forgivable loan of $25,000 per eligible unit, up to a maximum of $150,000 per site, when units are rented at or below 100% of Average Market Rent for at least 15 years.Also provides a rebate of up to $2,000 per building permit (excluding HST), to offset application fee costs.Eligible properties must be within the Housing for Hamilton Community Improvement Project Area (HHCIPA), excluding Sub Area 2 – Roxborough.Building permits issued after March 20, 2024 are eligible, with reimbursement upon proof of occupancy permit issuance.
Source: https://www.hamilton.ca/build-invest-grow/housing-secretariat/housing-accelerator-fund/additional-dwelling-unit-and-multi

‍2. Ontario Renovates Secondary Suites Forgivable Loan ProgramProvides up to $50,000 in funding to legalize or construct a secondary suite or Accessory Dwelling Unit.The loan is interest-free and forgiven over 15 years, provided affordability terms are met and the unit remains the homeowner's principal residence.
Source: https://www.hamilton.ca/people-programs/housing-shelter/housing-supports/ontario-renovates-programs

‍3. Commercial District Housing Opportunities ProgramAimed at properties in designated commercial corridors (e.g., Ancaster, Barton Village, Waterdown, etc.), this program supports creation or renovation of ADUs and small multiplexes.Offers up to $20,000 per dwelling unit (for loans) and up to $5,000 in grants for professional and municipal fees.
Source: https://investinhamilton.ca/wp-content/uploads/2023/06/City-of-Hamilton-incentives-June-2023-online-version-2.pdf

1. Niagara Renovates – Secondary Suite Forgivable Loan Offered a forgivable loan of up to $25,000 to finance the addition or legalization of secondary suites or ADUs. Applicants had to meet income criteria (tenant household income was capped at approximately $27,000), and required valid permits before approval. Construction needed to begin within 45 days of signing.
Status: Paused for 2025; expected to reopen in 2026 pending budget approval.
Source: https://www.thebuildingpermitguy.ca/post/niagara-adu-incentives (July 31, 2025)

‍2. Niagara Falls – ADU Planning Guide (No Funding)The City provides an ADU Information & Application Guide with zoning compliance checklists and permit process details. No financial incentives or grants available for ADU creation in Niagara Falls.
Source: https://niagarafalls.ca/city-hall/planning/additional-dwelling-units.aspx

‍3. Regional Affordable Housing & Incentive Framework The Niagara Region offers various housing incentives under its Affordable Housing programs, including: Regional Development Charges (DC) Deferral for affordable units, based on agreements with Regional agencies. Niagara Renovates – Homeownership (Repairs & Accessibility): Forgivable loans over 10 years for low- and moderate-income households for accessibility upgrades. Niagara Renovates – Multi-Residential: Forgivable loans over 15 years for accessibility or repairs in multi-unit buildings. Additional programs include grants for non-profits and partnerships for affordable housing projects.
Source: https://www.niagararegion.ca/government/incentive-programs/affordable-housing/default.aspx

Provides a 15-year forgivable loan of up to $30,000 per unit to create a secondary or garden suite that remains affordable for the term.
Source: https://simcoe.ca/residents/housing/affordable-housing-programs/
Source: https://simcoe.ca/wp-content/uploads/2024/01/Fact-Sheet-Secondary-Suites-2023-2024.pdfIn some references, the maximum forgivable loan may be listed as $50,000—still structured as a 15-year forgivable loan for the creation or legalization of a secondary or garden suite.
Source: https://211ontario.ca/service/71102266/simcoe-county-corporation-of-social-housing-secondary-suites-program/Accessibility Modifications: Grants up to $5,000 are available for permanent improvements (like ramps, chair lifts, accessible counters); modifications above that may qualify under the loan program, up to the $30,000 limit.
Source: https://simcoe.ca/wp-content/uploads/2024/01/Fact-Sheet-Secondary-Suites-2023-2024.pdfEligibility Criteria:Must own property within Simcoe County, in good financial standing (taxes, mortgage, insurance paid).Rental unit must comply with municipal building and zoning regulations, and Ontario Building Code.Rent must remain at or below Average Market Rent for 15 years.Tenant household income must not exceed thresholds set by the Ministry of Municipal Affairs and Housing.Applicants are limited to one funding request per property (with up to six separate projects possible upon approval).
Source: https://simcoe.ca/wp-content/uploads/2024/01/Fact-Sheet-Secondary-Suites-2023-2024.pdfApplication Notes:Funding is first-come, first-served, and available year-round, until funds are exhausted.Eligible “soft costs” may include portions of legal fees, accessibility modifications, mortgage postponement expenses, and more—subject to program approval.
Source: https://simcoe.ca/wp-content/uploads/2024/01/Fact-Sheet-Secondary-Suites-2023-2024.pdf

1. ADU Grant ProgramThe City offers a grant covering up to 70% of eligible project costs, with a maximum of $40,000 for interior ADUs (such as basement units) and up to $80,000 for exterior (detached) ADUs, subject to available funding through the Housing Accelerator Fund.Multiple ADU applications are allowed per property, though the cumulative incentive cannot exceed $80,000.Complete applications must be submitted within 90 days of Building Permit issuance, and grants are disbursed only after project completion.
Source: https://www.stcatharines.ca/en/planning-and-development/planning-and-development-community-improvement-plan.aspx2. Funding Status (2025)As of June 18, 2025, the ADU Grant Program is closed for 2025 due to exhausted funding.Check back in February 2026 for updates on new funding rounds.
Source: https://www.stcatharines.ca/en/planning-and-development/planning-and-development-community-improvement-plan.aspx3. Pre-Approved Detached ADU Design ProgramThe City offers pre-approved architectural plans for detached ADUs, aiming to reduce design costs and speed up permit approvals.These designs meet Ontario Building Code and the City’s zoning requirements, though property-specific factors (like setbacks) are reviewed during the permit process.
Source: https://www.stcatharines.ca/en/building-and-renovating/pre-approved-detached-accessory-dwelling-unit-adu-designs.aspx4. Additional Housing Incentives via Housing Accelerator Fund (HAF)The City secured $25.7 million from the CMHC's HAF to support housing priorities, including ADUs.Additional financial supports include:Increased Development Charge (DC) rental discounts—up to 50% for 1- and 2-bedroom units, and 35% for 3+ bedrooms (municipal portion only).Affordable Housing Parking Exemption—eliminates the need for parking spaces for affordable units.Accessible Housing Fee Reimbursement—permits for accessible dwelling units are reimbursed through December 31, 2025 (with possible extension).
Sources: https://www.engagestc.ca/housing-accelerator-fund; https://www.stcatharines.ca/en/housing-accelerator-fund.aspx5. Downtown Forgivable Loan Program (Pending Approval)Proposed amendment to the 2020 Community Improvement Plan would introduce a loan program for downtown properties, offering up to $100,000 per property, plus an optional $50,000 top-up for incorporating a barrier-free unit.Targeted for conversion of non-residential spaces (e.g., upper floors, basements) to residential units.Still subject to City Council approval; a public meeting was scheduled for August 11, 2025.
Source: https://www.engagestc.ca/housing-accelerator-fund

1. Affordable Laneway Suites Forgivable Loan Offers a 15-year, interest-free forgivable loan up to $50,000 to support the construction of a laneway or garden suite. The loan is forgiven at a rate of 6⅔% per year, provided the rental remains below CMHC’s Average Market Rent during the term. Rent caps apply and a charge must be registered on the property title.
Source: https://www.toronto.ca/wp-content/uploads/2019/06/96e6-FINALAffordable-Laneway-Suites-Pilot-Program-Q-A_june26.pdf2. Development Charges (DC) Deferral Program Allows eligible property owners building a rear-yard secondary dwelling (laneway or garden suite) to defer development charges for 20 years. Requires entering into a DC Deferral agreement and registering a Section 118 restriction on title.
Source: https://www.toronto.ca/community-people/community-partners/housing-partners/housing-initiatives/laneway-suites-program/3. Pre-Approved Garden and Laneway Suite Plans Toronto offers “Made in Toronto” pre-reviewed architectural plans for garden and laneway suites to streamline building permit applications and reduce design costs. These plans comply with zoning and building code, but other site-specific requirements (such as placement, setbacks, fire access) must still be met.
Source: https://www.toronto.ca/services-payments/building-construction/apply-for-a-building-permit/pre-approved-garden-and-laneway-suite-plans/4. Federal Secondary Suite Loan Program (Canada-wide)The 2024 Federal Fall Economic Statement expanded the Canada Secondary Suite Loan Program, raising the forgivable loan limit to $80,000 at a low interest rate (approx. 2%) over a 15-year term. Designed to help homeowners convert basements, garages, or build new garden or laneway suites.
Source: https://www.canada.ca/en/department-finance/news/2024/12/2024-fall-economic-statement-making-it-easier-for-homeowners-to-build-secondary-suites.html