City of Waterloo now offering grants for additional residential units
The City announced today it’s accepting applications for two types of grants for those planning to build an additional residential unit (ARU) on their property.
ARUs, also known as secondary suites, can be built as an addition inside your home, like a basement apartment or in-law suite, or within a separate building in the backyard, like a coach house. Up to four units are allowed on a residential property.
“We’re committed to unlocking creative housing solutions and breaking down financial barriers for homeowners building both market and affordable ARUs,” said Waterloo Mayor Dorothy McCabe. “Council unanimously approved these grants to help make multigenerational living, aging in place, and affordable housing a reality across Waterloo.”
Two ARU Grant Program streams are offered to support different project types:
- Detached ARU Grant – up to 50 per cent of project costs, to a maximum of $30,000 for eligible property owners. These include separate buildings such as a coach or laneway house, usually in the backyard.
- Interior ARU Grant – up to 50 per cent of project costs, to a maximum of $20,000 for eligible property owners. These are self-contained units within an existing or new home, such as a basement apartment or addition.
The goal is to support the development of 25 ARUs through the federal government’s Housing Accelerator Fund.
Given the increased demand for ARUs, the City prioritized short-term affordable housing through the Grant Program. Some criteria ensures the ARU is rented at an affordable rate for a minimum duration of five years. Affordable Housing is defined as rental housing units where the rent of a unit, inclusive of all utilities, is set at or below 80 per cent of CMHC’s Average Market Rent, by bedroom type, in the regional market area.
ARUs have numerous advantages in the current housing market. They help young adults stay in their neighbourhoods, or older adults can downsize while remaining in their own home. It allows for more multigenerational housing. It provides more affordable housing options or can help someone generate a rental income. All while using existing infrastructure like roads, utilities and services.
Applications are now open. Funding is limited. Once spots are filled, applicants will be added to a waitlist.
Visit the City’s webpage for Additional Residential Units to learn more and to fill out the application form.
Media contact:
Stacey Abbott
Manager, Corporate Communications
Stacey.Abbott@waterloo.ca