Exemption for Affordable and Attainable Residential Units

This exemption 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 city / town that you are working with to obtain your building permits.

This exemption is only available for projects with Regional development charges payable on or after June 1, 2024.

Affordable housing

This province-mandated exemption 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.

Niagara Region administers an Affordable Residential Units Regional Development Charges Exemption Policy approved by Regional Council on Sept. 25, 2025.

To be eligible for this exemption, an applicant must, at the time of 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.

Application process

Step 1 - Submit an application

Submit a completed application form and supporting documents by email to regiondc@niagararegion.ca.

The application fee is $3,500 in accordance with the Fees and Charges By-law No. 2025-65.

Applicants must also submit the transfer of property or financing intake form with their application package to provide financing information about the property.
Step 2 - Application review

Niagara Region staff review applications to confirm eligibility and completeness.
Step 3 - Agreement execution

If approved, the applicant will enter into a 25-year Affordable Housing Regional Development Charges Exemption Agreement. The agreement will be registered on title to ensure compliance.

Applicants can review the Affordable Residential Units Development Charges Exemption Agreement template.
Step 4 - Building permit

Proof of the registered agreement must be provided to the Chief Building Officer in the city / town within 180 days before the permit is issued.
Step 5 - Construction and occupancy

Affordable units are constructed and Niagara Region verifies that sale prices or rental rates meet affordability requirements.
Step 6 - Compliance monitoring

Niagara Region monitors affordability compliance during the 25-year affordability period.

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

Compliance and reporting

Owners of affordable rental units must submit an annual compliance report confirming that rents remain within the affordability thresholds.

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

Ownership transfers

During the affordability period, if an owner plans to transfer the property or any affordable residential unit and continue benefiting from the exemption, the following requirements apply:

The owner and purchaser must submit the transfer of property or financing intake form to the Region with supporting documents
The purchaser must enter into an assumption agreement to assume the obligations under the agreement and collateral charges

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.

Affordable purchase price or rent by city / town as of Aug. 1, 2025
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	$330,100	$330,100	$1,005	$942	$1,068	$1 ,530
Grimsby	$451,100	$451,100	$1,005	$1,028	$1,473	$1,530
Lincoln	$440,100	$423,000	$1,005	$1,242	$1,026	$1,530
Niagara Falls	$326,400	$326,400	$1,005	$1,203	$1,395	$1,438
Niagara-on-the-Lake	$425,400	$425,400	$1,005	$1,242	$1,473	$1,530
Pelham	$473,100	$450,000	$1,005	$1,242	$1,473	$1,530
Port Colborne	$315,400	$315,400	$1,005	$1,083	$1,244	$1,480
St. Catharines	$315,400	$315,400	$996	$1,363	$1,599	$1,660
Thorold	$363,100	$363,100	$1,005	$1,000	$1,473	$1,530
Wainfleet	$410,700	$410,700	$1,005	$1,242	$1,473	$1,530
Welland	$311,700	$311,700	$1,135	$1,088	$1,465	$1,228
West Lincoln	$451,100	$451,100	$1,005	$1,242	$1,473	$1,530

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.