ADU Programs by Municipality

Fort Erie

Program Details

Fort Erie offers a forgivable loan program designed to support the creation of new affordable rental units. This is one of the most active programs in the region and remains open for applications.

Eligibility Requirements

• Must create a new self-contained accessory dwelling unit
• Unit must be rented as affordable housing (not owner-occupied)
• Must maintain affordability period of 15 years minimum
• Property must be in Fort Erie
• Must comply with local zoning and building codes

Application Process

1. Contact Fort Erie Planning Department at the number above
2. Obtain application materials and program guidelines
3. Prepare architectural plans and building specifications
4. Submit complete application package to Planning Department
5. Attend pre-construction meeting with municipal staff
6. Complete construction and obtain Certificate of Occupancy
7. Demonstrate affordability compliance (rent levels, lease terms)
8. Forgivable loan is forgiven upon successful completion and compliance verification

Bill 23 DC Exemption: In addition to the ADU grant, Fort Erie residents may also qualify for development charge exemptions under Ontario Bill 23.

St. Catharines

Program Details

St. Catharines' Housing Accelerator Fund grant program is exceptionally generous, offering the largest grant amount in the entire Niagara Region. However, the program is currently operating at capacity. Check back periodically for waitlist openings, or sign up for notifications from the city.

Eligibility Requirements (When Open)

• Must create a new secondary suite or garden suite
• Must be new construction (not conversion of existing space)
• Unit must be rented as affordable rental housing
• Must maintain affordability period of minimum 20 years
• Property must be in St. Catharines
• Must meet OBC compliance and local zoning requirements

Waitlist Status

If interested in this program, contact St. Catharines Housing Department to discuss future availability and explore alternatives or other funding sources in the meantime.

Welland

Program Details

Welland's CIP provides financial incentives for creating affordable rental housing through ADUs. The program covers both secondary suites in existing homes and new garden suites. This is an active program with consistent funding.

Eligible ADU Types

• Secondary suites (basement, garage conversion, additions)
• Garden suites (detached residential structures)
• Laneway houses
• Accessory dwelling units on residential property

Eligibility Requirements

• Unit must be rented at affordable rates (defined by municipality)
• Property must be in Welland
• Must comply with local zoning bylaws and OBC
• Owner must maintain required lease documentation
• Affordability requirement period must be met

Application Process

1. Contact Welland Housing/Planning Department
2. Review CIP guidelines and application requirements
3. Prepare detailed project plans and cost estimates
4. Submit completed application with supporting documents
5. Municipal review and approval process
6. Complete construction and submit completion documentation
7. Grant disbursement upon verification of compliance

Port Colborne

Program Details

Port Colborne offers multiple incentive programs under their comprehensive CIP framework, designed to support housing creation including ADUs. The program is active and welcomes inquiries.

Available Incentives

• Property tax reduction/rebates
• Development charge reductions
• Grant programs for eligible housing projects
• Expedited permitting for qualifying projects

Next Steps

Contact Port Colborne Planning Department directly to discuss your specific ADU project and determine which incentives you may qualify for. The municipality will provide customized guidance based on your property location and project scope.

Bill 23 DC Exemption: In addition to CIP incentives, Port Colborne residents qualify for provincial development charge exemptions on ADU projects.

Niagara Falls

Program Details

Niagara Falls does not currently offer a dedicated municipal ADU grant program. However, residents have access to significant savings through Ontario's Bill 23, which exempts ADU projects from development charges. The city is actively promoting housing creation and has engaged building department staff to support ADU projects.

Bill 23 Development Charge Exemption

As Ontario's largest city in the Niagara Region, Niagara Falls is implementing development charge exemptions for ADU projects, which can save $20,000 to $50,000+ depending on unit type and location.

Zoning & Permitting

• Secondary suites are permitted in most residential zones
• Garden suites permitted on designated lot sizes
• Laneway houses in selected neighbourhoods
• Building Department is proactive in supporting ADU applications

Next Steps

Contact Niagara Falls Planning/Building Department to discuss your specific property and ADU type. Inquire specifically about Bill 23 DC exemption application and current zoning for your property.

Additional Resources: Check with Niagara Region Housing for any broader regional initiatives that may apply to Niagara Falls residents.

Thorold

Program Details

Thorold does not currently have a dedicated ADU grant program but fully supports ADU development through its zoning bylaws and the provincial Bill 23 development charge exemption. The municipality is working to streamline the ADU approval process.

Available Support

• Development charge exemption for ADU projects (Bill 23)
• Supportive zoning for secondary suites and garden suites
• Building Department resources to assist with application process

Eligible ADU Types

• Secondary suites in detached homes
• Garden suites on residential lots
• Garage conversions and additions

How to Proceed

Contact Thorold Building or Planning Department to discuss your ADU project, zoning compliance, and Bill 23 exemption eligibility. Request information about streamlined ADU approval timelines.

Lincoln

Program Status

Lincoln previously operated a CIP incentive program for housing creation, but it is currently on hold pending program evaluation and redesign. The municipality remains supportive of ADU development.

Alternative Resources Available

• Bill 23 Development Charge Exemption
• Municipal zoning support for secondary suites
• Building Department guidance on permits and compliance
• Provincial tax credits (MHRTC)

Check Back Soon

Contact Lincoln Planning Department to stay informed about when their CIP program may resume. In the meantime, explore Bill 23 exemptions and provincial tax credits to help offset ADU costs.

Grimsby

Program Details

Grimsby does not maintain a dedicated municipal ADU grant program but supports ADU development through supportive zoning and the provincial Bill 23 development charge exemption. The municipality welcomes ADU projects that increase housing supply.

Development Support

• Secondary suites permitted in most residential zones
• Development charge exemption for ADU projects (Bill 23)
• Building Department support for ADU applications
• Reasonable permit timelines

Getting Started

Contact Grimsby Planning and Building Department to discuss your property zoning, ADU type feasibility, and Bill 23 exemption application process. Request information about estimated DC savings for your project.

Tip: Grimsby's zoning is generally permissive for ADUs in residential neighbourhoods; confirm specific requirements for your property early in planning.

Pelham

Program Details

Pelham does not currently offer a dedicated ADU grant program but is supportive of secondary suites and ADU development. The primary incentive available is the provincial Bill 23 development charge exemption, which can provide substantial cost savings.

Zoning Support

• Secondary suites in detached homes are permitted
• Garden suites on eligible residential lots
• Development charge exemption for qualifying ADU projects

Contact Information

Reach out to Pelham Planning Department (ext. 344) to discuss your ADU project, confirm zoning eligibility, and learn about Bill 23 exemption application procedures. The municipality is responsive and supports housing diversity.

Wainfleet

Program Details

Wainfleet is a rural township without a dedicated ADU grant program. However, it supports housing creation and provides development charge exemptions under Bill 23. As a rural area, servicing and infrastructure considerations may apply.

Available Resources

• Development charge exemption for ADU projects (Bill 23)
• Supportive zoning for secondary suites where servicing permits
• Building Department guidance on rural ADU compliance

Before You Start

Contact Wainfleet Building Department (ext. 221) to confirm your property can support an ADU. Discuss servicing requirements, septic system capacity, and zoning compliance. Inquire about Bill 23 exemption savings for your specific project.

West Lincoln

Program Details

West Lincoln is actively developing a new Affordable Housing CIP program that will provide grant support for ADU projects. The program is expected to launch in March 2026. This is an excellent opportunity to get in on the ground floor of a new initiative.

Recommended Timeline

• Now: Contact West Lincoln Planning to express interest and request early information
• February 2026: Program details and application materials should be available
• March 2026: Official program launch and application opening
• Spring 2026: Begin detailed project planning and permitting

Get Ready

Reach out to West Lincoln today to stay informed. They may have preliminary information about program structure, maximum grant amounts, and eligibility requirements. Begin conceptual planning of your ADU project to be ready when the program launches.

Interim Support: West Lincoln residents already have access to Bill 23 development charge exemptions and provincial tax credits.

Niagara-on-the-Lake (NOTL)

Program Details

Niagara-on-the-Lake does not offer a dedicated municipal ADU grant program. The municipality is focused on heritage preservation while supporting modest housing creation. NOTL residents have access to provincial Bill 23 development charge exemptions.

Zoning & Approvals

• Secondary suites permitted in designated residential areas
• Heritage review required for properties in protected zones
• Development charge exemption for ADU projects (Bill 23)
• Extended approval timelines for heritage properties

Application Process

1. Contact NOTL Planning Department to discuss your property
2. Confirm zoning and heritage status of your property
3. If in heritage zone, budget time for heritage impact review
4. Prepare detailed plans compliant with local guidelines
5. Submit applications for necessary approvals
6. Coordinate with heritage committee if required
7. Obtain Bill 23 DC exemption application when ready

Recommendation: If your property is in a heritage-designated area, hire an architect or heritage consultant experienced in NOTL heritage guidelines early in your planning process.

Programs Available to All 12 Municipalities

Bill 23 Development Charge Exemption (Ontario)

Availability: All 12 Niagara municipalities | Potential Savings: $20,000–$50,000+

Ontario's Bill 23 exempts secondary suites and accessory dwelling units from development charges. This exemption is available to all Niagara Region residents regardless of municipality.

• Applies to secondary suites and garden suites
• Savings depend on local DC rates and unit size
• Must apply through your municipality's planning department
• One-time exemption per eligible property

Multigenerational Home Retrofit Tax Credit (MHRTC)

Availability: All Canada | Potential Savings: Up to $7,500

The federal Multigenerational Home Retrofit Tax Credit provides a 15% tax credit on eligible renovation and construction costs for creating or improving secondary suites.

• Available to all Canadian homeowners
• Credit applies to material and labour costs
• Claimed on federal income tax return
• Maximum credit of $7,500 per residence
• Example: $50,000 in eligible costs = $7,500 tax credit

CMHC Mortgage Refinancing (90% LTV)

Availability: All Canada | Benefit: Refinance up to 90% home value

Canada Mortgage and Housing Corporation allows refinancing for home renovation purposes, including ADU creation, at up to 90% loan-to-value (LTV). This is higher than typical refinance limits.

• Available for owner-occupied residences
• Funds can be used for ADU construction or renovation
• 90% LTV available for approved renovation purposes
• Contact your lender about CMHC-insured refinancing options

Canada Secondary Suite Loan Program (Coming 2026)

Availability: All Canada | Benefit: Up to $80,000 at 2% interest

The federal government is rolling out a new Secondary Suite Loan Program designed specifically to fund ADU creation. While details are still emerging, this represents unprecedented dedicated ADU financing.

• Dedicated ADU financing up to $80,000
• Promotional rate of 2% interest
• Expected to launch in spring/summer 2026
• Additional details available through CMHC and major lenders
• Monitor federal housing announcements for availability in your province

Summary: Potential Total Support

A typical ADU project in the Niagara Region could benefit from multiple programs simultaneously:

Next Steps

Key Resources

• Municipalities Overview – One-page reference for all 12 cities
• Complete Grants Guide – Detailed breakdown of all available funding sources
• Permit Process by Municipality – Step-by-step for each city
• Cost Guide – Budget planning by ADU type
• Tax Guide – MHRTC and rental income tax implications