Use this form to apply for the Additional Residential Unit (ARU) Grant Program

All properties where Additional Residential Units are permitted by the City’s Zoning By-law 2018-050 are eligible to receive funding if they meet the program’s eligibility criteria and procedures as determined solely by the City, and subject to available funding within the program budget.

Before you start:

• ensure you have read and understand the program eligibility criteria and guidelines. Learn more on the Additional Residential Unit web page, or read the June 2025 Staff Report (PDF).
• all properties where ARUs are permitted by the City’s Zoning By-law 2018-050 are eligible to receive funding if they meet the program’s eligibility criteria and procedures as determined solely by the City, and subject to available funding within the program budget
• program funding is limited and not all eligible projects may be awarded grants
• projects receiving funding must comply with the Ontario Building Code, the City’s Zoning By-law, the Residential Tenancies Act, and any other applicable regulations which may apply
• you must first apply to the ARU Grant Program before constructing an ARU
• ARU projects that are already complete are not eligible

What happens after approval?

After an application gets approved, the Applicant will receive a Conditional Letter of Commitment indicating that the Applicant has 120 days to apply for and obtain a building permit, and then one year to complete and occupy the ARU following the terms of the Program.

Applicants will be required to enter into a Grant Agreement with the City which specifies the terms and conditions of the funding. It is recommended and advised that all approved Applicants obtain independent legal advice, at the Applicant’s expense, to review and explain the terms and conditions

Approval could be withdrawn if:

• the applicant fails to comply with the terms of the program and the grant opportunity will be offered to the next applicant on the wait list
• any misrepresentation may result in an application being deemed ineligible
• the applicant fails to comply with the affordability rules for the required time period. This may result in a default and funding granted may need to be refunded to the City.

The grant funds will be awarded upon successful completion of the ARU project and submission of the following:

1. Provide proof of execution and registration of the Grant Agreement.
2. Submit a copy of the Occupancy Permit issued by the Building Inspector.
3. Submit a copy of the standard lease for the ARU.
4. Submit the tenant household’s income confirmation (i.e., previous year’s income tax Notice of Assessment).
5. Submit a copy of the Property Owner’s current home insurance coverage.
6. Submit paid invoices or receipts related to construction costs and/or development related fees incurred for the project.

Section 1: About the applicant

Section 2: About the property and the project

Two types of ARU projects are eligible:

1. Detached ARU Grant: Financial assistance of up to 50% of the eligible project costs or $30,000, whichever is less. The ARU must be a separate building on the property. Detached ARUs refer to coach houses or laneway houses that are typically located in the rear yard of a property.
2. Interior ARU Grant: Financial assistance of up to 50% of the eligible project costs or $20,000, whichever is less. The ARU (one or more) must be within new or existing residential buildings. Examples of interior ARUs are basement units or a separated unit within an existing house.

Section 3: Upload documents (optional)

Uploading documents is optional but will help staff in evaluating your application and may aid in prioritizing funding. Documents that you may want to include at this stage:

• project plan with a timeline
• preliminary drawings
• contractor agreement

Section 4: Acknowledgements

Read the acknowledgements, check the boxes and sign below.

Notice of Collection

Personal information, as defined by the Municipal Freedom of Information and Protection of Privacy Act (MFIPPA), including (but not limited to) your name and contact information, is collected and will be used in accordance with MFIPPA and all other relevant privacy laws. All information received will be used by the City's Integrated Planning & Public Works staff in the provision of the Additional Residential Unit Grant Program only.

Questions about this collection may be directed to the Commissioner of Integrated Planning & Public Works, Waterloo City Centre, 100 Regina Street South, P.O. Box 337, Station Waterloo, Waterloo, ON N2J 4A8. Telephone 519-747-8752.

Once you hit Submit, you will receive a confirmation email. If you do not receive a confirmation email to the email address you provided, contact the staff at ARU@waterloo.ca and notify them.

If you do not Submit and choose to Save the application instead, you must return to submit the application later. Staff is not notified of incomplete applications.