Currently Open Programs
These municipal grant programs are actively accepting applications as of January 2026. Take advantage of these opportunities before funding runs out.
Fort Erie ADU Grant Program
✓ Status: OPEN
Up to $20,000 available. Forgivable loan with 15-year affordability period.
Program Details:
- Forgivable loan (converts to grant if you meet conditions for 15 years)
- Covers new construction, conversion, or renovation of accessory dwelling units
- Must be within Fort Erie municipal boundaries
- 15-year affordability period requirement
Contact: Fort Erie Economic Development
Phone: 905-871-1600 x2502
Website: forterie.ca
Welland Affordable Rental CIP
✓ Status: OPEN
Up to $20,000 per unit available through Community Improvement Plan.
Program Details:
- Community Improvement Plan (CIP) funding for rental units
- Up to $20,000 per unit for eligible properties
- Applicable within Welland's designated CIP area
- Part of Welland's affordable housing strategy
Contact: Welland City Planning
Phone: 905-735-1700 x2251
Website: welland.ca
Port Colborne Comprehensive CIP
✓ Status: OPEN
Details available on case-by-case basis through Community Improvement Plan.
Program Details:
- Comprehensive Community Improvement Plan that may include ADU incentives
- Eligibility and funding amounts vary by project and location
- Contact municipality directly for specific property assessment
- Part of Port Colborne's housing diversification initiatives
Contact: Port Colborne Development Services
Phone: 905-835-2900
Website: portcolborne.ca
Programs at Capacity / Coming Soon
These programs are temporarily unavailable but may reopen or are launching soon. Check status regularly.
St. Catharines Housing Affordability Fund (HAF) ADU Grant
⚠ Status: AT CAPACITY
Up to $80,000 maximum (currently not accepting applications).
Program Details:
- Previously offered up to $80,000 per ADU project
- Maximum grant available in the Niagara Region
- Funded through Housing Affordability Fund (HAF)
- Currently at full capacity — no new applications accepted
- Recommendation: Sign up for notification when reopens
Contact: St. Catharines Housing & Support Services
Phone: 905-688-5601
Website: stcatharines.ca
Note: Call to inquire about waitlist or future rounds of funding.
Niagara Region Niagara Renovates Program
ℹ Status: REOPENING 2026
Regional program expected to launch later in 2026.
Program Details:
- Broader renovation incentive program at regional level
- May include ADU and secondary suite funding
- Expected to reopen in 2026 (exact timing TBD)
- Will likely cover multiple Niagara Region municipalities
Contact: Niagara Region Housing Department
Phone: 905-980-6000
Website: niagararegion.ca
Note: Check back for updates and launch details.
West Lincoln Affordable Housing CIP
ℹ Status: LAUNCHING MARCH 2026
New Community Improvement Plan for affordable housing.
Program Details:
- New CIP focused on affordable housing projects
- Expected to launch in March 2026
- Will likely include incentives for ADUs and rental units
- Application process details coming soon
Contact: West Lincoln Municipal Office
Phone: 905-957-3346
Website: westlincoln.ca
Note: Exact funding amounts and eligibility to be announced.
Lincoln Community Improvement Plan
⏸ Status: ON HOLD
Currently suspended pending future direction.
Program Details:
- Lincoln CIP previously offered housing incentives
- Program currently on hold — no timeline for resumption
- Funding amounts and details TBD
- Check with municipality for updates
Contact: Lincoln Town Hall
Phone: 905-563-2799
Website: lincoln.ca
Note: Monitor for announcements about program restart.
Programs Available to Everyone (Province/Federal)
These programs are available to all Canadians or all Ontarians, regardless of municipality. No local application required—claim directly on your tax return or through your lender.
Bill 23 Development Charge (DC) Exemption
✓ Available: All Ontario (Automatic)
Development charge exemption—save $20,000–$50,000+ automatically.
Program Details:
- What it covers: Exemption from development charges for up to 3 additional residential units on a single lot
- Savings: Typically $20,000–$50,000+ depending on municipality
- How it works: Automatic—municipalities cannot charge development charges for qualifying ADUs
- Eligibility: Any property owner in Ontario building an ADU
- Action required: Inform your municipality that your project qualifies under Bill 23
- Legislation: More Homes Built Faster Act (Bill 23), passed in 2022
Key Point: This is not an application—it's a legal exemption. Ensure your municipality correctly applies it when calculating development charges.
Multigenerational Home Renovation Tax Credit (MHRTC)
✓ Available: All Canada
Up to $7,500 tax credit (15% of up to $50,000 in expenses).
Program Details:
- What it is: Federal non-refundable tax credit
- Maximum credit: $7,500 (15% of up to $50,000 in qualifying expenses)
- Who qualifies: Creating a secondary suite for a senior (age 65+) or disabled family member
- Qualifying expenses: Labor and materials for renovations (not land, appliances, or furniture)
- How to claim: Claim on your T1 tax return (Form T776 for rental income)
- Pre-approval: Not required—self-assessment
- Timeline: Renovation must be completed between April 20, 2023 and December 31, 2026
Example: If you spend $45,000 on ADU renovations for your aging parent, you can claim 15% = $6,750 tax credit.
CMHC Mortgage Refinance Program
✓ Available: All Canada (Effective Jan 15, 2025)
Refinance up to 90% LTV to fund secondary suite construction.
Program Details:
- What it is: CMHC-insured mortgage refinancing specifically for secondary suite creation
- Maximum loan-to-value (LTV): 90% (higher than traditional refinance)
- Purpose: Borrow against home equity to fund ADU construction
- Effective date: January 15, 2025
- Available through: Any CMHC-insured lender (banks, credit unions, mortgage brokers)
- Requirements: Good credit, stable income, sufficient equity in home
- Process: Apply directly with lender; no separate CMHC application
Example: Home worth $500,000 with $200,000 mortgage. You can refinance up to $450,000 (90% LTV), using the additional $250,000 to build your ADU.
Canada Secondary Suite Loan Program
ℹ Status: COMING SOON (Federal)
Up to $80,000 at 2% interest over 15 years. Launch pending.
Program Details:
- What it is: New federal program to support secondary suite creation
- Maximum loan: $80,000
- Interest rate: 2% (below market rate)
- Term: 15 years
- Eligibility: For creating new secondary suites in Canada
- Status: Program announced but launch date pending federal approval
- Expected availability: 2026 or later
Note: Details and application process to be announced. Watch federal housing websites for updates.
Quick Comparison: All Available Programs
| Program | Maximum Amount | Type | Status | Availability |
|---|---|---|---|---|
| St. Catharines HAF ADU Grant | $80,000 | Grant | At Capacity | St. Catharines only |
| Fort Erie ADU Grant | $20,000 | Forgivable Loan | Open | Fort Erie only |
| Welland Affordable Rental CIP | $20,000/unit | Grant/CIP | Open | Welland only |
| Port Colborne CIP | Varies | Grant/CIP | Open | Port Colborne only |
| Bill 23 DC Exemption | $20K–$50K+ | Tax Exemption | Active | All Ontario |
| MHRTC Tax Credit | $7,500 | Tax Credit | Active | All Canada |
| CMHC Mortgage Refinance | Up to 90% LTV | Financing | Active (Jan 2025+) | All Canada |
| Canada Secondary Suite Loan | $80,000 | Loan @ 2% | Coming Soon | All Canada |
How to Apply — Step by Step
The application process varies by program, but here's the general framework for municipal grants:
Step 1: Check Your Eligibility
- Verify your municipality offers ADU grants (see Current Programs above)
- Confirm your property is within the eligible area
- Meet basic requirements (zoning, building code compliance, etc.)
- Have a construction budget and timeline ready
Step 2: Contact Your Municipality
- Call the municipality's planning or development services department
- Ask specifically about ADU grant programs and CIP incentives
- Request an application package and eligibility assessment
- Ask about application deadlines and funding cycles
Step 3: Prepare Documentation
Most municipal applications require:
- Property ownership proof (deed, mortgage document, tax bill)
- Detailed project plan (scope, timeline, budget breakdown)
- Site plan showing ADU location and specifications
- Architectural drawings or design plans
- Quotes from contractors (typically 2–3)
- Proof of zoning compliance
- Homeowner identification and financial information
Step 4: Submit Your Application
- Complete the official application form provided by municipality
- Include all required supporting documents
- Submit to the specified department (planning, development, housing)
- Keep copies of everything for your records
- Get confirmation of receipt
Step 5: Review & Approval
- Municipality will review application (typically 4–8 weeks)
- You may be asked for clarifications or additional documents
- Once approved, you'll receive a grant agreement letter
- Review terms carefully (affordability period, conditions, etc.)
- Sign and return the agreement
Step 6: Construction & Disbursement
- Proceed with construction per approved plans
- Keep detailed records of all expenses
- Some programs disburse before construction, others after
- Submit invoices and proof of payment for reimbursement (if applicable)
- Municipality may conduct inspections during construction
Step 7: Final Inspection & Grant Payment
- Upon completion, schedule final inspection
- Once approved, grant funds are released
- You may be required to sign an affordability agreement (15–20 years)
- Maintain records for compliance verification
Eligibility Checklist
Use this checklist to determine if you qualify for ADU grants in your area:
General Eligibility Requirements
- Own property in a municipality with active ADU grant program
- Property zoned to permit accessory dwelling units
- No code violations or outstanding property taxes
- Primary residence (not investment property, for most programs)
- Not previously received similar grant for same property
- Willing to maintain affordability period (typically 15 years)
- Project complies with Ontario Building Code
- Able to provide documentation of ownership
Municipal Grant Specifics (varies by program)
- Property within eligible municipality boundaries
- Project within eligible area or development zone
- ADU meets municipality's size/design requirements
- Construction cost within program limits
- Willing to sign affordability covenant
- Not already receiving other similar incentives
- Application submitted before deadline
- Contractor licensed and insured (if required)
Provincial/Federal Program Eligibility
- Bill 23 DC Exemption: Building in Ontario, up to 3 additional units on single lot
- MHRTC Tax Credit: Creating suite for senior 65+ or disabled family member, renovating between April 2023–Dec 2026
- CMHC Refinance: Own home with sufficient equity, good credit, stable income
- Canada Secondary Suite Loan: Creating new secondary suite anywhere in Canada (details pending)
⚠ Important Note on Eligibility
Eligibility requirements change frequently. Always contact your municipality or the program administrator directly to confirm current requirements before investing time in an application.
Pro Tips for Success
- Apply early: Municipal grants often work on a first-come, first-served basis. Don't wait until the deadline.
- Get pre-approval: Contact your municipality before hiring contractors to understand requirements and timelines.
- Stack incentives: You can often combine municipal grants, tax credits, and CMHC financing for maximum savings.
- Document everything: Keep detailed records of all expenses, quotes, invoices, and correspondence with your municipality.
- Meet all conditions: Read the grant agreement carefully. Missing affordability period or other conditions can result in clawback.
- Consult professionals: A tax accountant can help maximize MHRTC credit. A lawyer can review grant agreements.
- Plan ahead: Factor in 8–12 weeks for municipal application review. Don't start construction before approval.
- Check for updates: Grant programs change year to year. Verify current status before applying.