Ontario Construction News staff writer
The City of London is expanding housing incentives and waiving select development fees in an effort to accelerate construction activity
Several time-limited programs will be available to housing projects that obtain building permits between April 29 and Sept. 7, as the municipality looks to stimulate near-term development and close the gap on its housing delivery goals.
City council has also approved updates to its Additional Residential Unit (ARU) incentives, broadening eligibility to include all types of secondary units on qualifying residential properties. Previously, support was more limited to certain forms 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 revised framework, the program formerly known as the Additional Residential Unit Construction Grant Program will continue to provide forgivable loans or grants to help offset construction costs. 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, which provides up to $20,000 to builders who include an ARU in a newly constructed, unoccupied single-detached home. The goal is to encourage “built-in” rental units at the time of construction, improving cost efficiency and expanding supply from the outset.
In addition, a temporary waiver of building permit fees was introduced for new housing projects, backed by up to $2.5 million in funding and will remain in place until September 7, 2026, or until funds are fully allocated. City staff estimate the initiative supports approximately 1,900 housing units aligned with the HAF target.
The fee waiver is intended to encourage development in areas already served by transit, including established neighbourhoods and emerging growth areas. To speed uptake, the City is also streamlining approvals through simplified application guidelines, standardized agreements, and expanded delegated authority for staff.
“These changes make it easier for homeowners and builders to add housing quickly,” said Scott Mathers, Deputy City Manager, Housing and Community Growth. “By stacking new incentive programs and waiving building fees, we’re helping more housing projects move forward quickly to meet our Housing Accelerator targets while providing more housing for Londoners.”
As of April 1, 9,902 new housing units have been created—representing 84 per cent of the three-year target of 11,803 units under the Housing Accelerator Fund. All 11 HAF action plan initiatives have been completed, though officials say additional development will be required to reach the final target ahead of the federal deadline.
More information on the incentive programs is available at www.london.ca/cip.
