Exemption for Affordable and Attainable Residential Units
This program provides a full exemption of development charges for residential units that meet the definition of affordable or attainable as outlined in Section 4.1 of the Development Charges Act, 1997.
This exemption is embedded in the Development Charges Act and is mandatory for all municipalities in Ontario. You must apply to this exemption before receiving a building permit. To apply for this exemption, inquire with the local area municipality that you are working with to obtain your building permits.
This program is only available for projects with Regional development charges payable on or after June 1, 2024.
Affordable housing
This province-mandated program provides full exemption of development charges for purpose built affordable rental and owned units.
The province has legislated that development charges for affordable housing be exempted based on price levels (ownership and rental). These price levels vary across Niagara and are dependent on the city / town in which building permits are being obtained.
To be eligible for this exemption, an applicant must at building permit issuance:
- Meet the affordability thresholds for rental / ownership based on the city / town where a building permit is being obtained.
- Intend to sell or rent at arms length
- Enter into an agreement with Niagara Region that the unit(s) will remain affordable for 25 years. This agreement must be registered on title.
For rental units
Per Section 4.1 of the Development Charges Act, 1997, a residential unit intended for use as a rented residential premises shall be an affordable residential unit if it meets the following criteria:
- The rent is no greater than the lesser of,
- The income-based affordable rent for the residential unit set out in the Affordable Residential Units bulletin, as identified by the Minister of Municipal Affairs and Housing in accordance with subsection (5); and
- The average market rent identified for the residential unit set out in the Affordable Residential Units bulletin.
- The tenant is dealing at arm's length with the landlord
For ownership units
Per Section 4.1 of the Development Charges Act, 1997, a residential unit not intended for use as a rented residential premises shall be considered to be an affordable residential unit if it meets the following criteria:
- The price of the residential unit is no greater than the lesser of,
- The income-based affordable purchase price for the residential unit set out in the Affordable Residential Units bulletin, as identified by the Minister of Municipal Affairs and Housing in accordance with subsection (6), and
- 90 per cent of the average purchase price identified for the residential unit set out in the Affordable Residential Units bulletin.
- The residential unit is sold to a person who is dealing at arm’s length with the seller.
Thresholds for affordable units
The provincial government has set the thresholds for affordable units for both rented and owned for each city / town. For full details, see the Province's bulletin on affordable residential units for the purposes of the Development Charges Act.
| City / town | Purchase price of a single / semi / row / townhouse | Purchase price of a condominium apartment | Monthly rent of a bachelor unit | Monthly rent of a one-bedroom unit | Monthly rent of a two bedroom unit | Monthly rent of a three or more bedroom unit |
|---|---|---|---|---|---|---|
| Fort Erie | $323,400 | $323,400 | $949 | $977 | $1,077 | $1 ,484 |
| Grimsby | $441,900 | $441,900 | $949 | $1,229 | $1,394 | $1,484 |
| Lincoln | $431,200 | $423,000 | $949 | $1,229 | $1,394 | $1,484 |
| Niagara-on-the-Lake | $416,800 | $416,800 | $949 | $1,229 | $1,394 | $1,484 |
| Niagara Falls | $319,800 | $319,800 | $732 | $1,200 | $1,317 | $1,460 |
| Pelham | $463,500 | $405,000 | $949 | $1,229 | $1,394 | $1,484 |
| Port Colborne | $309,000 | $309,000 | $949 | $1,038 | $1,161 | $1,440 |
| St. Catharines | $309,000 | $309,000 | $1,053 | $1,338 | $1,552 | $1,620 |
| Thorold | $355,700 | $355,700 | $949 | $1,036 | $1,369 | $1,484 |
| Wainfleet | $402,400 | $402,400 | $949 | $1,229 | $1,394 | $1,484 |
| Welland | $305,400 | $305,400 | $784 | $1,043 | $1,299 | $1,115 |
| West Lincoln | $441,900 | $441,900 | $949 | $1,229 | $1,394 | $1,484 |
Attainable housing
The development charges exemption for attainable housing is not yet operable. Full details of this definition have not yet been established by the province.
Contact
For more information, email the development charges team.
© Niagara Region - 1815 Sir Isaac Brock Way, Thorold, ON, L2V 4T7 - Phone: 905-980-6000, Toll-free: 1-800-263-7215
