Looking to build affordable housing? The City of Guelph has grants available for you!
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Background
The City of Guelph is launching an Affordable Housing Community Improvement Plan. The plan provides grants for those looking to:
- add a new affordable unit to their property, such as basement apartments, in-law suites or tiny homes
- turn vacant units into affordable housing
- build new affordable housing units
Our Affordable Housing Community Improvement Plan (CIP) is just one tool that we’re using to help make more affordable housing available in Guelph. The incentives are one of the actions included in our Housing Affordability Strategy, and are funded by the federal government’s Housing Accelerator Fund, which aims to boost local housing supply.
Affordable Housing CIP Program Document
What grants are available?
To be eligible for the Affordable Housing Community Improvement Plan grants, your housing project must meet Provincial Affordability Benchmarks for the timelines indicated below. Affordable Housing Benchmarks can be found on the Housing Affordability page on guelph.ca.
You can apply to the following grant programs:
| Grant name | Length it needs to remain affordable |
|---|---|
| Additional dwelling unit grant – Homeowner stream | 15 years |
| Additional dwelling unit grant – project stream | 15 years |
| Vacant unit renewal grant | 25 years |
| New affordable housing unit grant | 25 years |
More details will be provided at an initial intake meeting.
Additional Dwelling Unit Grant
About the grant
This grant is designed to encourage homeowners and landlords to build additional dwelling units that are affordable on the property.
It may include additional dwelling units, such as:
- basement apartments
- in-law suites, garage suites or garden suites
- tiny homes
- other additional dwelling units (also known as accessory dwelling units)
This program provides two streams of potential funding: a homeowner stream and a project stream.
An applicant may apply for funding for multiple projects under the ADU Grant Program.
Additional Dwelling Unit Grant Program amendment
We’re making it easier for more people to access our additional dwelling unit (ADU) grants. On December 9, 2025, Council passed an amendment to the Additional Dwelling Unit Grant Program. The amendment includes changes to expand who’s eligible for additional dwelling unit grants and changes how much funding is available for certain projects.
Changes to the Additional Dwelling Unit Grant program are reflected below and in the Affordable Housing Community Improvement Plan program document.
The changes do not impact agreements already signed under the Additional Dwelling Unit Grant Program.
Access the amendment to the Additional Dwelling Unit Grant Program. Alternative accessible formats are available by contacting [email protected] or TTY 519-826-9771.
Check the December 9 Council Planning meeting minutes for more information.
Homeowner stream
Homeowners are eligible for funding for up to three ADUs on their property.
This includes up to:
- $20,000 for each affordable housing unit added to the property.
- $10,000 for each unit if the affordable housing unit has accessibility features beyond building code requirements. View our accessibility section for more details.
- Between $20,000 to $60,000 per project for infrastructure upgrades if needed for the new housing unit(s). The amount of funding available is dependent on the type of project. Please see the Funding for infrastructure upgrades table, below, for details.
Project stream
Under the Project Stream there is no cap on number of units eligible for funding as part of one project. Funding includes up to:
- $15,000 for each affordable housing unit added to the property.
- $10,000 for each affordable housing unit that has accessibility features beyond building code requirements. View our accessibility section for more details.
- Between $20,000 to $60,000 per project for infrastructure upgrades if needed for the new housing unit(s). The amount of funding available is dependent on the type of project. Please see the Funding for infrastructure upgrades table, below, for details.
Funding for infrastructure upgrades
| Type of project | Amount | For |
|---|---|---|
| One ADU (second unit on a property) | Up to $20,000 | Municipal infrastructure upgrades |
| One ADU (third or fourth unit on a property) | Up to $20,000 | Municipal infrastructure upgrades and/or private utility service upgrades |
| Two ADUs | Up to $40,000 | Municipal infrastructure upgrades and/or private utility service upgrades |
| Three or more ADUs | Up to $60,000 | Municipal infrastructure upgrades and/or private utility service upgrades |
Servicing an additional dwelling unit
Before building an additional dwelling unit on your property, it is important to consider whether the water and wastewater services are properly equipped to handle an ADU.
Property owners are responsible for any costs associated with upgrading municipal servicing infrastructure on private property and within the right-of-way to allow for new development, including additional dwelling units. All municipal servicing infrastructure needs to comply with the Ontario Building Code. To make this process easier and more affordable, the Additional Dwelling Unit Grant offers funding to support costs associated with upgrading public side infrastructure.
To determine your property’s municipal servicing needs, you can email [email protected] or call 519-837-5604 to contact the City’s Engineering Services.
Sometimes a property’s private utility service connection, such as for electric services, are not equipped to handle ADUs. The need to upgrade these services may be determined by your electrician or the private utility service operator. The Additional Dwelling Unit Grant Program offers funding when adding a third or fourth unit, or multiple ADUs as part of a single project, to support costs associated with upgrading private utility services up to and including the meter base.
What is the expected return on investment?
Your return on investment will vary depending on the number of bedrooms and location of your additional dwelling unit.
Here is how soon you could see a return on your investment for a two-bedroom unit under the Additional dwelling unit grant – homeowner stream:
| Location of the additional dwelling unit | Attached (for example, a basement apartment, home addition, or attic apartment) | Detached (for example, a garden suite or tiny home) |
|---|---|---|
| Potential cost of project | $100,000 | $200,000 |
| Number of years to see a return on investment | About four and a half years | About 10 years |
Note: These are projected estimates. Projects may vary based on scope, adjustments to the affordable rental rate, and other market factors. The City encourages applicants to do their own budget calculations based on your specific project and needs.
Which projects are eligible?
To qualify for this grant, your housing project must involve:
- Constructing a new additional dwelling unit that meets provincial Affordability Benchmarks
- Adding new gross floor space to accommodate an additional dwelling unit on your property
- Building units that contain full private culinary, washroom, sleeping and living area space
Note: Projects must have an approved building permit by December 2026.
Which projects are NOT eligible?
The following projects are not eligible for this grant:
- Homeowner stream: projects where the applicant does not live on the property
- Projects that do not comply with Policy 9.3.2.3 of the City of Guelph Official Plan
Vacant Unit Renewal Grant
About the grant
- This grant is designed to encourage non-profits, home builders, and landlords to rehabilitate and turn vacant units into affordable housing units for rent
- This program is for multi-unit, multistory housing and mixed-use buildings with residential, commercial, institutional or office unit(s) that are currently vacant and uninhabitable
How much can I receive?
- You can receive up to $100,000 towards each affordable housing unit built
- Up to an additional $20,000 is available for each eligible affordable housing unit with accessibility features beyond building code requirements
Which projects are eligible?
To qualify for this grant, your housing project must involve:
- Renovating current residential unit(s) that are not habitable into an affordable rental unit(s)
- Turning vacant spaces on the second floor or higher within a multi-unit building into an affordable rental unit(s) in areas that are zoned mixed use.
- Unit(s) must be a multi-story, multi-residential or mixed-use building
- Unit(s) must contain full private culinary, washroom, sleeping and living area space
Note: Projects must have an approved building permit before December 2026.
Which projects are NOT eligible?
The following projects are not eligible for this grant:
Housing built for sale
Renovation of unit(s) or renewal of existing space(s) that:
have existing tenants who are paying affordable rental rates
New construction that creates additional gross floor area (extension of the existing building)
Low density structures, for example, single family homes, townhomes or duplexes
New Affordable Residential Unit Grant
About the grant
This grant is designed to encourage non-profits, landlords and home builders to construct new purpose-built, affordable rental or ownership units in mid-rise, multi-unit residential development projects.
How much can I receive?
You can receive up to $25,000 for each affordable housing unit built for rent or ownership.
Which projects are eligible?
To qualify for this grant, your housing project must involve:
- New mid-rise, multi-unit residential development projects that include purpose-built affordable rental or ownership housing units.
- Mid-rise, multi-unit residential or mixed-use buildings.
- Housing units that contain full private culinary, washroom, sleeping and living area space.
Note: Projects must have an approved building permit before December 2026.
Which projects are NOT eligible?
The following projects are not eligible for this grant:
Secondary suites, including additional dwelling units or accessory dwelling units must have an approved building permit before December 2026.
Renovation of unit(s) or renewal of existing space(s) that:
have existing tenants who are paying affordable rental rates
are located on the ground floor of a mixed-use building
New construction that creates additional gross floor area (extension of the existing building)
Low density structures (for example, single family homes, townhomes or duplexes) not classified as mid-rise, multi-unit residential buildings.
Accessibility
The City of Guelph knows that there is a growing need for both affordable and accessible housing. As part of the Affordable Housing Community Improvement Plan, we are offering financial support to include accessible features at the time of construction.
Please see the table below for the funding amounts available and the accessibility features we will be looking for in your design plans:
| Program details | Additional dwelling unit grant | Vacant unit renewal grant |
|---|---|---|
| Funding amount available | Up to $10,000 per unit, based on the estimated cost. | Up to $20,000 per unit, based on the estimated cost. |
| Accessibility features | A barrier-free path of travel; an accessible bathroom, including reinforced grab bars and a wheelchair accessible sink; lever style door hardware and winged faucet taps; wheelchair accessible entrance to the unit; wheelchair accessible kitchen area; wheelchair accessible pathway from unit to the street/sidewalk; automatic door operator. | A barrier-free path of travel; an accessible bathroom, including reinforced grab bars and a wheelchair accessible sink; lever style door hardware and winged faucet taps; wheelchair accessible entrance to the uni; wheelchair accessible kitchen area; wheelchair accessible pathway from unit to the street/sidewalk; automatic door operator. |
To learn more about accessibility features covered by the accessibility grant, please email [email protected] or submit an intake form. We will discuss your individual project, planned accessibility features, and the amount that can be covered through the grant.
Ready to apply? Submit your intake form
Have an affordable housing project that meets the criteria for one of the grants above? Let’s chat!
- Fill out the intake form below
- Email your completed intake form to [email protected] with the details of your affordable housing project.
- City staff will contact you within five business days to learn more and/or set up an intake meeting.
Thanks for your interest in bringing more affordable housing to Guelph!
Success stories
Ending youth homelessness: City grant helps Wyndham House build supportive housing for youth
For young people in Guelph who don’t have a safe place to live, getting stable housing can be life changing. Thanks to a $320,000 grant from the City for the “Welcome 2 Waterloo” project, 10 youth will soon have access to supportive housing at 109 Waterloo Avenue.
This funding comes from the City’s Vacant Unit Renewal Grant program, which are part of the City’s larger Affordable Housing Community Improvement Plan. These grants are supported by the federal Housing Accelerator Fund.
Led by Wyndham House, the “Welcome 2 Waterloo” project includes two types of housing to meet different needs. At 109 Waterloo Avenue, three units will offer 24/7 support and health services for 10 youth. At 107 Waterloo Avenue, three apartments will help youth learn to live more independently as they get ready for permanent housing.
Together, these homes will give 13 young people a safe and stable place to live. This project is possible because of funding from the City and other local partners.
Youth are expected to move in by fall 2026. When that happens, Guelph could become the first mid-sized city in Canada to end chronic youth homelessness.
Resources
- Council Planning meeting documents – Final Affordable Housing Community Improvement Plan
- City of Guelph – Guidelines for building an additional dwelling unit
- City of Guelph – Housing Affordability Strategy
- Development application forms, guidelines, templates and manuals
- Building applications, forms and fees