Ontario Construction News staff writer
The City of London is rolling out new housing incentives and eliminating certain development fees to boost construction efforts.
A range of limited-time programs will be available for housing projects that secure building permits between April 29 and Sept. 7, as the city aims to promote immediate development and meet its housing delivery targets.
City council has also made updates to its Additional Residential Unit (ARU) incentives, expanding eligibility to cover all types of secondary units on qualifying residential properties. Previously, support was mainly focused on specific types of detached units.
“These are important changes that will help accelerate construction and support residents,” said Mayor Josh Morgan. “Additional Residential Units can help us reach long-term housing goals and promote sustainable land use by helping Londoners turn underutilized space into homes.
“By expanding this program to include all types of ARUs, we’re making practical adjustments that will open those opportunities to more homeowners and keep us on track to meet our targets.”
Under the new framework, the program previously known as the Additional Residential Unit Construction Grant Program will continue offering forgivable loans or grants to help offset construction expenses. Incentives include up to $20,000 for new ARUs without rent restrictions, up to $45,000 for affordable ARUs with rents capped at average market rates, and up to $45,000 for Indigenous-led housing projects. All funding streams require a minimum 10-year rental commitment to support long-term housing supply.
Council also introduced a new Additional Residential Unit Construction Grant for New Homes, providing up to $20,000 to builders who include an ARU in a newly constructed, unoccupied single-detached home. The aim is to encourage “built-in” rental units during construction, improving cost efficiency and increasing supply from the start.
Additionally, a temporary waiver of building permit fees has been implemented for new housing projects. This initiative is backed by up to $2.5 million in funding and will stay in effect until September 7, 2026, or until funds are fully allocated. City staff estimate this effort supports approximately 1,900 housing units aligned with the HAF target.
The fee waiver aims to boost development in areas already served by transit-including established neighborhoods and emerging growth regions. To expedite uptake, the City is also simplifying approvals through clearer application guidelines, standardized agreements, and expanded authority for staff.
“These changes make it easier for homeowners and builders to add housing quickly,” said Scott Mathers, Deputy City Manager for Housing and Community Growth. “By stacking new incentive programs and waiving building fees, we’re helping more housing projects move forward quickly while providing more homes for Londoners.”
As of April 1, 9,902 new housing units have been created-representing 84 percent of the three-year target of 11,803 units under the Housing Accelerator Fund. All 11 HAF action plan initiatives have been completed; however officials say additional development will be needed to hit the final target ahead of the federal deadline.
You can find more information about these incentive programs at www. london. ca/cip.
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