City of London expands financial incentives to meet Housing Accelerator Fund targets

New homes are seen under construction in this undated file image. (Bryan Bicknell/CTV News London)

To meet federal targets under the Housing Accelerator Fund, the City of London recently announced it is expanding financial incentives to spur new housing developments.

According to a news release, the city is expanding financial incentives to accelerate housing development and meet targets under the federal Housing Accelerator Fund (HAF).

As a result, several time-limited programs are available to housing projects that receive building permits between April 29 and Sept. 7.

London City Council has approved updates to streamline and expand support for homeowners and builders creating additional residential units (ARUs), which includes basement apartments, garden suites and other secondary units.

The city says eligibility has been broadened to allow all types of ARUs on eligible residential properties, “rather than limiting the program to 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.”

What do the new financial incentives include?

Expanded additional residential unit programs

As part of the update, the city says its existing program has been renamed the Additional Residential Unit Construction Grant Program.

The program will continue to offer forgivable loans or grants in order to help offset construction costs, including:

• Up to $20,000 for a new ARU with no rent restrictions
• Up to $45,000 for affordable ARUs with rents capped at average market rates
• Up to $45,000 for Indigenous-led housing projects

Funding requires a minimum 10-year rental commitment to support long-term housing supply.

In addition, city council has also approved a new Additional Residential Unit Construction Grant for New Homes, which provides up to $20,000 to builders who include an ARU in a new, unoccupied single-detached home.

“This new incentive is intended to help create rental units at the time of construction, making it easier and more cost-effective to add housing before a new home is first occupied,” the city says.

New temporary building permit fee waiver program

Council has also approved a time-limited waiver of building permit fees for new housing.

The city says up to $2.5 million has been allocated to support the program, which will run until Sept. 7 or until funding runs out. The city adds that this will align with the approximately 1,900 units needed to meet London’s Housing Accelerator Fund target.

“This incentive is intended to encourage more homes in areas already well-served by transit, including both existing neighbourhoods and growing parts of the city,” the city says.

To encourage participation within the limited timeframe, the city adds it is simplifying application processes through updated guidelines, standardized agreements and delegated authority for staff to finalize approvals.

“These changes make it easier for homeowners and builders to add housing quickly,” explained Deputy City Manager, Housing and Community Growth Scott Mathers. “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.”

Progress toward housing targets

As of April 1, 2026:

• 9,902 new housing units have been created
• This represents 84 per cent of the three-year target of 11,803 units
• All 11 HAF Action Plan initiatives have been completed

While strong progress has been made, the city says additional housing is needed to meet the final target before the federal deadline.

To learn more or apply, you can visit the City of London’s website.