Additional Residential Unit (ARU) Grant Program

To qualify for the ARU Grant Program, applicants must meet the following requirements:

• Be the property owner of a residential property within the Township
• Ensure the property complies with all applicable Township by-laws, including zoning and building/fire code requirements
• Ensure all property taxes, fees, and municipal charges are paid in full

All ARUs funded through this program must meet the following requirements for the duration of the grant agreement:

• The unit must be rented at an affordable rate, not exceeding 80% of the Canada Mortgage and Housing Corporation (CMHC) Average Market Rent for the unit type.
  • CMHC Average Market Rent values are updated annually, and program limits are adjusted accordingly.
• Rents must be maintained within program limits for the full affordability period.
• The ARU cannot be used as a short-term rental.
• Homeowners may be required to provide annual confirmation of rent (such as a lease agreement or signed declaration) to ensure compliance

The affordability period is calculated by comparing the difference between the CMHC Average Market Rent and the approved affordable rent for the unit against the value of the grant provided. The larger the monthly discount below market rent, the shorter the affordability period required to offset the value of the grant.

Example:

• CMHC Average Market Rent for a one bedroom apartment: $1,589/month
• Approved CMHC Affordable Rent: $1,271.20/month
• Monthly Rental Difference based on CMHC affordability: $317.80/month

$\frac{10000}{317.80} \approx 31.5\ \text{months}$317.8010000​≈31.5 months

$\text{Affordability Period (months)} = \frac{\text{Grant Amount}}{\text{CMHC Market Rent} – \text{Approved Affordable Rent}}$

The program supports the creation of:

• Detached Additional Residential Units
• Attached units (e.g., additions or above-garage units)
• Basement apartments

All units must be intended for long-term residential use.

Yes. A maximum of 2 ARUs per property may be funded (subject to zoning) and the maximum total funding per property is $20,000.

Applicants must submit an ARU grant application and a Building Permit Application for the proposed ARU for the application to be considered complete* and for the Township to begin the review process. Grants will be awarded a first come first serve basis.

Following receipt of both applications the Township will undertake the following steps:

1. Building Permit Application Review & Permit Issuance
   • Staff will review the Building Permit application
   • Staff will issue the Building Permit once all applicable law requirements have been met in accordance with Ontario Building Code
2. Grant Eligibility & Agreement
   • Following issuance of a building permit staff will review the ARU Grant Application and begin preperation of the agreement
   • The applicant will be contacted to advise what the rental rate will be fore the unit
   • Once all required information has been received for the agreement, staff will provide the agreement to the applicant for review and signature
3. Funding Allocation
   • Funding is released once the grant agreement is executed and the building permit is issued.

*Applications will not be placed in the queue for funding until both applications have been received and a building permit has been issued.

Applicants should apply for a building permit at the same time as submitting their ARU Grant Program application form. This helps avoid delays in processing. A building permit must be issued by the Township before an application is considered complete and eligible for funding.

Key details:

• Grant funding ranges from $10,000 to $15,000 per ARU, depending on the unit type
• Grant funding is released after your building permit has been approved and the grant agreement has been entered into, to help offset upfront construction costs
• The program operates on a first-come, first-served basis, and funding is limited
• Applications are open from May 2026 to September 2027

Yes:

• Construction must begin within 6 months of building permit issuance
• The ARU must be completed and ready for occupancy within 2 years

Additional Residential Units (ARUs), both attached and detached, are generally permitted in a range of residential and agricultural zones, subject to the Township’s Zoning By-law.

To confirm your property’s zoning, please refer to the Wellington County Interactive Zoning map.

For full details, please review the Township’s Zoning By-law or contact Township staff planning@puslinch.ca.