Vacant home tax, rental renovation bylaw and expanded use of City-owned land for affordable housing coming soon
Guelph, Ont., November 26, 2025 – The City is taking proactive steps to protect and expand affordable housing in Guelph. Last night, Council approved work on three major initiatives that will help more people keep or find housing:
- Creating a four per cent vacant home tax using a complaint-based system
- Developing a rental renovation (renoviction) bylaw and rental replacement bylaw to protect renters from bad faith evictions
- Expanding use of City-owned land for affordable housing
“Our community needs affordable housing now — and we’re taking action to address that need,” said City of Guelph Mayor Cam Guthrie.
“That’s why Council has voted unanimously to create a vacant home tax, strengthen rules to protect tenants, and use City land to support affordable housing. Together, these steps will help make safe, affordable housing a reality for more people in Guelph.”
Creating a four per cent vacant home tax
Council approved the development of a new tax on homes left empty for more than 183 days (about six months). The goal is to encourage owners to rent or sell unused homes so more people can live in them.
The four per cent tax will be based on the assessed property value. The City will use a complaint-based system, where residents can report homes that they suspect to be vacant.
Homes will be exempt in cases like:
- repairs or renovations
- death of the owner
- owner is in care or hospitalized
A four per cent Vacant Home Tax is expected to impact about 50 homes and generate $325,000 in revenue. This revenue will be reinvested into the City’s Affordable Housing Reserve Fund, established in 2002 to support new affordable housing — from shelters to supportive housing and non-profit housing.
New rules to protect renters from bad faith evictions
The City is starting work on new bylaws to protect renters and preserve affordable rentals in Guelph.
First is a rental renovation bylaw — also known as renoviction bylaw — designed to protect tenants during major renovations. Under this bylaw, landlords must prove renovations are so extensive and unsafe that the renters cannot stay during the work. Landlords would also need to provide tenants with compensation and comply with Provincial standards that safeguard tenants.
Second is a rental replacement bylaw. This bylaw would use a permit process to ensure that if affordable units are removed during renovations, the same number of units are built again and provided at similar rents.
Expanding use of City-owned land for affordable housing
The City is taking a more active role in affordable housing by using its land strategically. This could mean contributing or leasing land, or building affordable housing directly and working with a non-profit to operate it. The City will tailor its approach to the property and project, and is reviewing financial and legal implications to ensure its approach is sustainable.
As part of the expanded approach, the City is planning to build 12 new rental units on land it owns on Normandy Drive and Eastview Road. These units will be run by an affordable housing provider and costs will be covered by federal funding.
“For a long time, the convention has been for us to create opportunities for affordable housing, rather than build it,” said City of Guelph Mayor Cam Guthrie. “Now we’re changing that. Guelph needs more affordable housing — and we’re going to use the City’s land to ensure it gets built.”
In the coming months, the City will begin looking for a builder to construct the housing and non-profit partners to lease and operate the building. Other minor planning approvals and building permits will be needed before the project starts construction.
Next steps
Staff will come back to Council in Q2 2026 with:
- a draft rental renovation (renoviction) bylaw
- a vacant home tax program
- a draft rental replacement bylaw
Timing for implementation will be confirmed pending Council direction, with the rental renovation bylaw and vacant home tax program likely rolling out in 2026 and the rental replacement bylaw in early 2027.
These steps are part of the City’s work through its Housing Affordability Strategy to help ensure about one in every three newly built homes is affordable. This work supports one of the strategy’s key goals, which is to preserve Guelph’s stock of affordable homes.
“Everyone deserves security and peace of mind when it comes to housing,” said Tara Baker, Chief Administrative Officer at the City of Guelph.
“We’re accelerating our work on these initiatives to deliver the priorities of Council and our community to put homes back to use, strengthen renter protections, and get housing built using the resources we have.”
Council will discuss and approve funding for these projects at today’s Special Council meeting.
To learn more, visit guelph.ca.
Quick facts
- Currently, only three municipalities in Ontario have a renoviction bylaw and five have a vacant home tax.
- Between 2025 and 2035, the City is working to support the creation of 980 affordable ownership units and 790 rental units.
Resources
- November 4: Committee of the Whole Agenda
- November 25: City Council Agenda
Media Contact
Strategic Communications
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City of Guelph