Additional Residential Unit Incentive Program

• Zoning clearance certificate fees
• Building, occupancy permit and inspection fees
• One-year on-street parking permit fee for new affordable ARUs

This program falls under the Affordable Rental Housing Community Improvement Plan (CIP) and should be considered in conjunction with the full CIP document.  The forgivable loan is available to homeowners, non-profit organizations, and businesses that are the registered or assessed owners of residential properties.

If you keep the unit affordable for 10 years, your loan becomes a grant.

Incentives

• Interior/Attached ARUs, including garage conversions: Up to $70,000 per new affordable rental unit.
• Detached ARUs: Up to $95,000 per new affordable rental unit.

Eligible ARU project costs include expenses directly associated with constructing the ARU and must be incurred after receiving a Letter of Intent with conditional approval from the City of Burlington.

Affordability Requirements for Forgivable Loan:

• Rent Thresholds (2024):
• Bachelor: $1,192
• 1-Bedroom: $1,621
• 2-Bedroom: $1,831
• Affordability Period: Rents must remain at or below these thresholds for the full 10-year loan agreement period.
• Annual Verification: An annual submission is required to confirm ongoing compliance with program requirements.
• Reference Materials: For detailed information, refer to Section 3.3 of the City’s Affordable Rental Housing Community Improvement Plan and the Affordable Residential Units for the Purposes of the Development Charges Act, 1997 Bulletin.

Eligible Costs

• Construction labour and materials
• Building/Fire Code upgrades - HVAC, plumbing, electrical, egress, insulation
• Accessibility improvements to make the design barrier-free
• Permanent finishes - drywall, paint, cabinetry up to 25 per cent of the total cost
• Professional services - architects, engineers – up to 15 per cent of the total cost

OR,

• Purchase and installation of a modular or prefabricated offsite-manufactured detached unit — covered up to 100% of the total cost, excluding appliances.

Ineligible costs include — but are not limited to — expenses related to land, household appliances, and financing.

Loan Terms:

• No interest
• You must register the loan agreement on title at your expense
• Annual reporting to the City of Burlington to verify continued compliance with the loan agreement
• If the property is sold before the end of the term or the agreement is breached—such as by charging rent above the average market rate—you will be required to repay the loan in part or in full

You may apply for a one-time grant of up to $15,000 to renovate a non-compliant ARU through a valid building permit. An affordability agreement is not required for this grant.
Note: This grant is not part of the Community Improvement Plan (CIP).

Eligible costs are like those covered under the forgivable loan program.

Ineligible costs include — but are not limited to — expenses related to land, household appliances, and financing.

Applications are first-come, first-served and depend on available funding.

How to Apply

1. Get your Zoning Clearance.

2. Take photos of the project area.

3. Submit your Application Form online.

4. Once your application is received, it will be reviewed. If approved, you will be issued a letter of intent. If not approved, you will be notified of the reason within five business days.

5. If you don’t already have a Building Permit, apply for your Building Permit (note: you can submit concurrently for your zoning clearance and building permit).

6. Finish Construction, pass inspections and get occupancy permit.

7. For the forgivable loan only: Once your tenant moves in, provide us with a copy of your lease and proof of permitted occupancy. Your 10-year agreement period starts now.

8. Submit Final Docs: Contracts (as applicable), confirmation of paid receipts (not invoices), lease, proof of home insurance, etc.

9. For the forgivable loan: sign an agreement with the City for the loan and register the charge on title.

10. Receive your payment.