Additional Dwelling Unit and Multi-Plex Housing Incentive Program

The Additional Dwelling Unit and Multi-Plex Housing Incentive Program(PDF, 688.79 KB) is intended to provide financial incentives to support the creation of Additional Dwelling Units or Garden Suites within, or on the same property as, new or existing low-density houses or the creation of multi-plex developments with six (6) or less Dwelling Units.

Program incentives provided:

• Grant to rebate the City application fee (excluding HST) for each building permit successfully issued to construct an individual eligible unit or a building containing eligible units to a maximum of $2,000 per building permit and/or
• 15-year, forgiven loan of $25,000 per eligible unit (s) intending to meet the affordability parameters of this program to a maximum of $150,000 per site.

Applicants must have received an Occupancy Permit from the City of Hamilton to be eligible for this incentive.

Important information before submitting application

Applicants can only submit one application per site/property, and an applicant is not permitted to apply for funding/incentives under 2 separate HHCIP programs.

• All applicants are required to review the detailed City Council approved Hamilton Community Improvement Plan, and in particular Appendix "D" titled Additional Dwelling Unit and Multi-plex Housing Incentive Program(PDF, 688.79 KB) description and terms (the “Program Guide”).  This information is available on the following webpage: www.hamilton.ca/haf.
• Building Permits issued after March 20, 2024 are eligible for this Program and will be retroactively reimbursed with proof of Occupancy Permit issuance. 
• For a property (“Site”) to be eligible for this Program, the Site must be located within the Housing for Hamilton Community Improvement Project Area (HHCIPA). Note that the Site cannot be located within the HHCIPA Sub Area 2 – Roxborough (See City of Hamilton By-law No. 24, Report 24-002 (PED23143(c)) for reference)
• Funding for this Program has been made available through the Government of Canada’s Housing Accelerator Fund.
• A grant under this Program (a “Grant”) is intended to support the development of rental housing units within the HHCIPA. The Grant is provided as a rebate on the City application fee (excluding HST) for each building permit successfully issued to construct an individual eligible unit or a building containing eligible units to a maximum of $2,000 per building permit.
• A Forgivable Loan under this program (a “Forgivable Loan”) is intended to support the development of affordable rental housing units (with rents not to exceed 100% Average Market Rents) (“AMR”) for a minimum of 15 years) within the HHCIPA. The Forgivable Loan is a maximum of $25,000 per unit to a maximum of $150,000 per Site. All conditions for a Forgivable Loan must be met, and a request for an advance of the Forgivable Loan amount must be made, on or before December 31, 2026, or the approval for the Forgivable Loan shall be terminated.
• Please ensure all required information and supporting documentation is provided as per the checklist contained herein. 
• An Applicant to this Program must be the registered owner of the Site. An application from someone other than the registered owner of the Site will not be accepted.
• This Program shall not apply to a Site where a designated heritage building, or any designated part of a Site has been demolished in contravention of the Ontario Heritage Act or any applicable City by-law or Official Plan policy respecting designated heritage buildings, or parts thereof.
• For the purpose of this Program and this application:
  • ‘Site’ shall mean all properties/parcels of land required for the planned development.
  • ‘Eligible Unit’ shall mean any of the following, the construction of which has been the subject of a successful occupancy permit issuance:
    • An ‘Additional Dwelling Unit’ or ‘Additional Dwelling Unit (“ADU”)– Detached’ as defined under the Hamilton Zoning By-law 05-200, as amended and which requires a building permit to create;
    • ‘Garden Suite’ as defined under the Planning Act, R.S.O. 1990, c. P. 13, as amended; and
    • Residential or mixed-use multi-plex developments of any form containing six (6) or less Dwelling Units within the same building, with ‘Dwelling Unit’ having the same meaning as defined in Hamilton Zoning By-law 05-200, as amended.
  • ‘Program Interest Rate’ shall mean the prevailing interest rate established by City Council on tax arrears and charged per annum unless otherwise forgiven in accordance with the terms of this Program.
  • “AMR” means Average Market Rent (AMR) for the City of Hamilton (noted in the table below), as surveyed and published annually by Canada Mortgage and Housing Corporation. 
    • Bach    $1017
    • 1BR    $1326
    • 2BR    $1543
    • 3BR    $1668

Application progress cannot be saved. Please ensure you have all your documents and information ready before starting the application.