The maximum grant amount is $10,000 plus applicable building permit fees. The grant does not have to be repaid to the municipality.

Usage Restrictions: Funds must be used solely for the construction of an additional residential unit. No upgrades or renovations are permitted. No grants are provided retroactively. The Municipality reserve the right to ensure that usage restrictions are upheld, and grants can be called back to the Municipality if funds are used in contravention of the grant agreement.

These approved pre-designs are shovel-ready and remove some of the cost and design barriers of ARUs. These designs are not, however, the only designs that can be used to create an ARU. Property owners can submit their own designs with their grant application as long as they are new builds. Please note though, no grants can be provided retroactively. Architectural designs can be obtained with or without a grant application but require their own application in order to be obtained from the Municipality. The Municipality pays the licensing fee for the use of these designs and property owners can use them free of charge. One property owner may apply for a grant and use the designs as long as they complete both applications and are approved for building.

An Eligibility Scoring Rubric is used in the review and approval process for the ARU Initiative. Categories such as Project Design, Affordability, Readiness, and Innovation are all taken into consideration in the review of applications. A Best Efforts Clause for Housing Affordability is a key part of the Eligibility Scoring Rubric, the ARU Initiative, and the Housing Accelerator Fund overall.

Find the Eligibility Scoring Rubric here.

Find the Best Efforts Clause for Housing Affordability here.

The review and approval timeline are within one month of the intake window closing for that period (20 business days).

Construction Requirements

• Building Codes: All construction must meet municipal building codes and regulations.
• Permits and Inspections: All necessary permits, including a Building Permit, and inspections are required.
• Project Completion: Projects should obtain final occupancy one year after the funds or plans are released.

Repayment Terms and Conditions

Penalties for Default: The applicant is considered to be in default and the grant must be promptly repaid in full if any of the following situations occur:

• Failure to commence construction or complete the project within established timelines;
• The unit or project is sold;
• Misrepresentation related to eligibility for the program is determined;
• Property taxes are not paid up-to-date, and/or confirmation of such is not provided within timelines requested;
• Funding is used for other purposes.

Any legal costs incurred by the Municipality as a result of taking action to collect grants in default will be added to the outstanding balance. Grant recipients may be contacted to verify that the unit has not been sold, to verify rent charged, and to ensure that the unit has been occupied as prescribed by a tenant.

The benefits of ARUs are well understood and evidenced. A study by ARPENT, funded by the Canadian Housing and Mortgage Corporation (CMHC), found that in Canada, “the cities of Vancouver, Calgary, Edmonton and Ottawa, along with almost every municipality in Ontario, allow some types of [ARUs]. These cities chose to allow these dwellings because of the many benefits they offer” (ARPENT, September 2018) which includes the following list:

• They meet a range of housing needs: With an aging population and homeownership out of reach for young people, ARUs can meet the needs of several demographics. This type of dwelling makes it easier for seniors to stay in their homes and for low-income households to gain access to homeownership and affordable housing.
• They promote intergenerational and multi-family arrangements: In Canada and the U.S., more than half of AUs are set up for a family member, which points to a growing need for such arrangements.
• They optimize collective infrastructure: By channeling urban development into areas that are already served by public infrastructure (sewers, water, roads, schools, etc.), ARUs optimize their use, which translates into major savings for municipalities.
• They create additional income for both cities and homeowners: ARUs help bring in more tax revenues for cities and generate rental income for homeowners. Conversely, overly restrictive urban planning regulations discourage the construction of ARUs and keep existing ARUs part of an informal economy, which represents a missed revenue opportunity. In addition, the presence of well-integrated ARUs in a neighbourhood slightly increases the average property value.
• They reduce urban sprawl and foster sustainable cities: ARUs can be a key element in policies to transition toward a more sustainable city. They are a means of bringing soft densification to existing neighbourhoods, which reduces pressure on natural and agricultural areas by redirecting real estate development away from them. In addition, by increasing the number of residents in an area, they make it possible to reach critical density thresholds that enable better public transit service and an improved range of local businesses and services.

If you own your property, your property is zoned residential, and if your property can support an ARU, you can apply for both the grant stream and the architectural designs stream included in the ARU Initiative. There are other requirements such as demonstrating financing and considering affordability in any rental of your potential ARU that are used to assess your application against a scoring rubric. (Find the scoring rubric under Key Documents on this page).

You can add up to two extra living units on your property, but:

• Both extra units can be inside your main house.
• You may have one inside your house and one in a separate small building (like a backyard suite or garage apartment).
• You may not have two inside your house and another one in a separate building.
• You may not have two, in two separate buildings (making four ARUs) on your property.

Yes, there are some restrictions.  

• No ARUs in flood zones – If your property is in a floodplain, you can’t add an extra unit.
• No mixing with other types of rentals – If you already have a "garden suite" (a temporary small home) or rooming units (like a boarding house setup), you can’t add another unit.

The extra unit can have its own driveway, but it must still follow all the other zoning by-laws.

Every additional unit must have its own parking space which is separate from the principal dwelling. The parking can be shared in the same driveway (tandem parking) as long as there is enough space to accommodate additional vehicles.

Yes. Before building your ARU, you must obtain a building permit from North Grenville and ensure it meets all fire and safety codes.

There are some special rules for separate buildings (like a backyard unit or garage apartment):

• It must follow lot size and setback rules (how far it needs to be from property lines).
• It can’t be taller than your main house and must comply with height restrictions for an accessory structure in your zone.
• If your property is on a septic system (not city sewer), you need at least 1 acre of land to have your ARU in a separate building.
• If your property is on a septic system you may also need a building permit from the Rideau Valley Septic Office.

Lot Coverage: North Grenville recently modified its lot coverage rules. So, if you are constructing an ARU, it can exceed lot coverage at your property, as long as you meet all other zoning requirements.

Not sure what your property is zoned? Locate it using the link below.