Additional Residential Unit Incentive Program

Additional Residential Units (ARUs) are self-contained living units with their own kitchen, bathroom and sleeping areas. They are on the same property as a primary home, including single detached homes, semi-detached homes, and townhouses.

ARUs can be:

• Inside or attached to a main house, such as a basement apartment or garage conversion.

• In a separate building like a permanent tiny home.

Incentive Program Overview

The ARU Incentive Program provides financial support to:

• Create new affordable rental Additional Residential Units (ARUs)

• Renovate existing ARUs to bring them into compliance with legal standards

This program is subject to available funding. Applications are first-come, first-served and depend on available funding.

Program Eligibility

If your application is approved, the city will provide you with comprehensive program guidelines to review before signing a Letter of Intent.

Program Incentives

Municipal Fee Waivers

The city will pay your eligible municipal fees up to 100 per cent for homeowners and non-profit organizations on:

• Zoning clearance certificate fees

• Building, occupancy permit and inspection fees

• One-year on-street parking permit fee for new affordable ARUs

Forgivable Loan for Affordable Rental ARUs

This program falls under the Affordable Rental Housing Community Improvement Plan (CIP) and should be considered in conjunction with the full CIP document. The forgivable loan is available to homeowners, non-profit organizations, and businesses that are the registered or assessed owners of residential properties.

If you keep the unit affordable for 10 years, your loan becomes a grant.

Incentives

• Interior/Attached ARUs, including garage conversions: Up to $70,000 per new affordable rental unit.

• Detached ARUs: Up to $95,000 per new affordable rental unit.

Eligible ARU project costs include expenses directly associated with constructing the ARU and must be incurred after receiving a Letter of Intent with conditional approval from the City of Burlington.

Loan Terms:

• No interest

• You must register the loan agreement on title at your expense

• Annual reporting to the City of Burlington to verify continued compliance with the loan agreement

• If the property is sold before the end of the term or the agreement is breached—such as by charging rent above the average market rate—you will be required to repay the loan in part or in full

Application Due Dates

Applications are now open! To stay eligible, you must:

• Apply for the program within a year of receiving zoning clearance

• Obtain a building permit by Oct. 1, 2025

• Get an occupancy permit and have the unit occupied within one year of receiving your letter of intent

If you are unable to meet the due dates, you may need to reapply if program funds are still available.

Learn more about the Burlington 

Additional Residential Unit Incentive Program

CLICK HERE