Affordable housing
Use this page to learn more about affordable housing initiatives to increase the number of affordable housing units in the City of 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
- About the Affordable Rental Housing Grant Program
- Apply for a community improvement plan grant
- Get a development charge deferral
- Apply for a parking reduction agreement
- Apply for other incentive programs
- Build an additional residential unit
- Learn more about our affordable housing strategy
- Housing accelerator fund initiatives
About the Affordable Rental Housing Grant Program
The second call for the Affordable Rental Housing Grant is now open, offering $725,000 in available funding. The deadline to apply is May 30, 2025 by 2:00 p.m.
The program aims to help not-for-profits offset some of the capital costs (including fees and charges) of creating and/or retaining affordable housing units through a grant.
A complete overview of the program’s requirements and eligible work can be found in the Affordable Rental Housing Grant Program Policy M-010 (PDF).
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Eligibility requirements
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To apply, the applicant must:
To apply, the project must:
Affordability requirements table
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If you have any questions about applying for this grant, email WaterlooARHGP@waterloo.ca
Apply for an uptown Community Improvement Plan (CIP) grant
Tax increment grants for affordable housing are available as part of our community improvement plan for the uptown area.
If you expand or redevelop a building to include at least 10 affordable housing units, you may be eligible to save 50 percent off the incremental property tax increase.
The grant lasts from 6 to 10 years based on the features of the building.
Visit our CIP page or contact cip@waterloo.ca for more details.
Get a development charge deferral
Not-for-profit
Not-for-profit developments do not need to pay Development Charges, Community Benefit Charges or Parkland Dedication fees. An application is not required and the legislation allows this if you meet Sec. 4.2 of the Development Charges Act.
For-profit
For-profit developments do not need to pay Development Charges, Community Benefits Charges or Parkland Dedication fees for any affordable housing units if they meet Sec. 4.2 of the Development Charges Act.
An agreement has to be entered into with the City of Waterloo and the Region of Waterloo that requires the affordable residential unit(s) to remain affordable for a period of at least 25 years.
Apply for a parking reduction agreement
Parking reduction agreements may be offered to builders of affordable housing seeking to develop or redevelop a property in Waterloo. Refer to the Council-approved Parking Reduction for Affordable Housing Guidelines to determine whether your development proposal is eligible for parking reductions.
Apply for a parking reduction agreement
Parking reductions for affordable housing is one of the key commitments of the city's Housing Accelerator Fund Action Plan.
Apply for other incentive programs
Other organizations and agencies offer incentives to help build and maintain affordable housing.
Region of Waterloo
The Region of Waterloo has several programs that may apply to affordable housing projects in the City of Waterloo. These include:
- capital grants
- secondary suite funding
- rent supplements for landlords
- development charge grants
- property tax breaks
Visit the Region of Waterloo's affordable housing incentives page for details.
Canada Mortgage and Housing Corporation (CMHC)
CMHC offers a range of capital grants and loans that provide low/no interest or forgivable loans for builders of affordable housing. View the CMHC website for information about these opportunities.
Municipal Property Assessment Corporation (MPAC)
In Ontario, the Assessment Act provides a full exemption from property tax to various charitable and non-profit organizations. For example, section 12 of the Assessment Act provides for a property tax exemption for “land owned, used and occupied by…any charitable, non-profit philanthropic corporation organized for the relief of the poor if the corporation is supported in part by public funds.”
Non-profit affordable housing providers that meet this definition may be eligible for a property tax exemption. Interested providers can file an appeal with the city (S.357(1)(c)) with justification. The city will then forward the appeal to MPAC for a decision.
Property Tax Exemption Program
The City of Waterloo is participating in the Region of Waterloo’s Property Tax Exemption Program for affordable housing providers. For more information on this program and how to apply, visit the Region of Waterloo website.
Build an additional residential unit
The City of Waterloo allows the creation of up to three units on a residential lot subject to compliance with Section 3.A.1B and 3.C.2 of Zoning By-law 2018-050. View the zoning bylaw.
Learn more about the process, steps and requirements for constructing an additional unit on the additional residential units web page.
When building additional residential units be aware that:
- a building permit is required. Learn more on the building permit page to apply for a permit for a home renovation or addition.
- a rental license is required if the additional residential unit is proposed to be used for rental purposes. Learn more on the rental licences page about requirements and to apply.
Learn more about our Affordable Housing Strategy
Housing Accelerator Fund initiatives
The City of Waterloo has been awarded $22 million in funding from the federal government’s Housing Accelerator Fund (HAF) to support a housing action plan which contains eight initiatives.