Ontario Construction News staff writer
The City of Guelph has approved three major initiatives aimed at preserving and expanding affordable homes: a four per cent vacant home tax, rental renovation and replacement bylaws and expanding the use of city-owned land for affordable housing.
“Our community needs affordable housing now — and we’re taking action to address that need,” said Mayor Cam Guthrie. “Council has voted unanimously to create a vacant home tax, strengthen rules to protect tenants, and use City land to support affordable housing.
“Together, these steps will help make safe, affordable housing a reality for more people in Guelph.”
The city plan includes contributing or leasing land or building affordable housing directly and working with a non-profit to operate it. The City will tailor its approach to the property and project and is reviewing financial and legal implications to ensure its approach is sustainable.
Guelph hopes to build 12 new rental units on land it owns on Normandy Drive and Eastview Road. These units will be run by an affordable housing provider and costs will be covered by federal funding.
“For a long time, the convention has been for us to create opportunities for affordable housing, rather than build it,” said City of Guelph Mayor Cam Guthrie. “Now we’re changing that. Guelph needs more affordable housing — and we’re going to use the City’s land to ensure it gets built.”
In the coming months, the Guelph will begin looking for a builder to construct the housing and non-profit partners to lease and operate the building. Other minor planning approvals and building permits will be needed before the project starts construction.
Also, a new tax will apply to homes left empty for more than 183 days, with a complaint-based system where residents can report suspected vacant properties. Homes undergoing renovations, those of owners who are hospitalized or deceased, or where owners are in care, would be exempt.
Set at four per cent of assessed property value, the tax is expected to generate $325,000 for the affordable housing reserve fund.
Draft bylaws and the vacant home tax program are expected to be presented to council in the second quarter of 2026, with implementation likely later that year. The rental replacement bylaw could roll out in early 2027.
The initiatives are part of Guelph’s Housing Affordability Strategy, which aims to ensure about one in three new homes is affordable and preserve the city’s existing stock of affordable housing.
Between 2025 and 2035, Guelph aims to support the creation of 980 affordable ownership units and 790 rental units.
