Affordable housing

Find grants, incentives and support for affordable housing in Waterloo.

To apply to live in affordable housing, check availability or get on a waitlist, visit the Region of Waterloo's website.


On this page:


Affordable Rental Housing Grant

The Affordable Rental Housing Grant is now closed.

The grant helps not-for-profits cover some capital costs, including fees and charges, for creating or keeping affordable housing units.

For full details, read the Affordable Rental Housing Grant Program Policy M-010 (PDF).


Apply for a Community Improvement Plan Grant

Tax increment grants for affordable housing are available through the Community Improvement Plan (CIP).

If you expand or redevelop a building to include at least 10 affordable housing units, you may qualify for a 50% rebate on the property tax increase.

The grant lasts from 6 to 10 years, depending on your project.

Visit our Community Improvement Plan page or contact cip@waterloo.ca for details.


Defer development charges

Not-for-profit developments

Not-for-profit developments do not need to pay Development Charges, Community Benefit Charges or Parkland Dedication fees if you meet Sec. 4.2 of the Development Charges Act. No application is required.

For-profit developments

For-profit developments can defer Development Charges, Community Benefits Charges or Parkland Dedication fees for affordable housing units if they meet Sec. 4.2 of the Development Charges Act.

You must enter an agreement with the City of Waterloo and the Region of Waterloo confirming the units will remain affordable for at least 25 years.


Apply for a parking reduction agreement

Affordable housing developers may qualify for reduced parking requirements.

Check the Parking Reduction for Affordable Housing Guidelines (PDF) to confirm eligibility.

This initiative supports the city’s Housing Accelerator Fund Action Plan.


Find other incentive programs

Other organizations also offer funding, tax relief and other support for affordable housing.

Region of Waterloo

The Region of Waterloo has several programs that may apply to affordable housing projects:

  • capital grants
  • secondary suite funding
  • rent supplements for landlords
  • development charge grants
  • property tax breaks

Learn more on the Region of Waterloo's affordable housing incentives page.

Canada Mortgage and Housing Corporation (CMHC)

CMHC offers grants and low or no-interest loans to help build affordable housing.

Visit the CMHC website to explore available programs.

Municipal Property Assessment Corporation (MPAC)

Non-profit affordable housing providers may qualify for a property tax exemption under Ontario’s Assessment Act.

To be eligible, your organization must:

  • be charitable or non-profit
  • provide housing or services that relieve poverty
  • receive some public funding

If you meet these conditions, you can submit an appeal to the city under Section 357(1)(c) of the Municipal Act. Include documentation that explains why your property should be exempt.

The city will forward your appeal to the Municipal Property Assessment Corporation (MPAC) for a decision.

Property Tax Exemption Program

The City of Waterloo participates in the Region of Waterloo’s Property Tax Exemption Program for affordable housing providers. Visit the Region's website for application information.


Build an additional residential unit

You can add up to 4 units on most residential lots in Waterloo following Zoning By-law 2018-050.

Learn about the process on the additional residential units page.

When building additional residential units:

  • you must get a building permit – visit the building permit page
  • you need a rental licence if the unit will be rented – visit the rental licences page

You can get up to $30,000 to build an additional residential unit if it will be rented at an affordable rate.

Learn more and apply for the ARU grant.


Read the affordable housing strategy

Approved by Council in 2023, the Affordable Housing Strategy focuses on:

  • increasing the supply of affordable housing
  • protecting existing affordable housing
  • building community capacity and awareness

Learn about the Housing Accelerator Fund

The City of Waterloo received $22 million from the federal government’s Housing Accelerator Fund (HAF) to support a housing action plan with 8 initiatives.