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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.
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.
Homeowner stream
You can receive up to $50,000 as part of the homeowner stream for this grant program. This includes:
- Up to $20,000 for each affordable housing unit added to the property
- Up to $20,000 if you require upgrades to water or wastewater infrastructure up to and within the right-of-way to service the new housing unit.*
- Up to $10,000 if the affordable housing unit has accessibility features beyond building code requirements. View our accessibility section for more details.
Project stream
You can receive up to $140,000 as part of project stream for this grant program. This includes:
- Up to $10,000 for each affordable housing unit added to the property, to a maximum of six housing units as part of one project
- Up to $20,000 if you require upgrades to water or wastewater infrastructure up to and within the right-of-way to service the new housing unit.
- Up to $10,000 for each affordable housing unit that has accessibility features beyond building code requirements. View our accessibility section for more details.
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 servicing infrastructure on private property and within the right-of-way to allow for new development, including additional dwelling units. All servicing infrastructure needs to comply with the Ontario Building Code. To make this process easier and more affordable, the Additional Dwelling Unit Grant offers $20,000 to support costs associated with upgrading public side infrastructure.
To determine your property’s servicing needs, you can email [email protected] or call 519-837-5604 to contact the City’s Engineering Services.
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 before 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
- Project stream: Projects proposing more than six additional dwelling units
- Projects that do not comply with Policy 9.3.2.3 of the City of Guelph Official Plan
Note: No more than one project is allowed per applicant, corporation or entity
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:
- 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
- Housing built for sale
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:
- 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.
- Secondary suites, including additional dwelling units or accessory dwelling units
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 |
|
|
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!
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