Rapid Additional Residential Unit (ARU) Initiative 2.0 grants are now open! Rapid ARU Grant #1 has increased from $5,000 to $10,000!
Council has approved this incentive program to encourage the creation of ARUs in Collingwood, providing much-needed rental options for the community. Please note that these incentives are limited to the first 23 eligible participants who successfully obtain Zoning Certificates and Building Permits. Check the eligibility requirements below. The program is structured as follows:
Rapid ARU Grant #1
After receiving zoning certificate and building permit approval, participants who sign a statement agreeing to rent out the unit year-round for at least five years will receive a grant of $10,000. This includes funds to help cover ARU start-up costs such as design, site preparation, materials, construction labor, certificate and permit fees.
County of Simcoe Second Suites Program
We encourage landowners to look into the County of Simcoe’s Second Suite Program which provides forgivable loans up to $30,000 to homeowners who commit to renting at an affordable rate for 15 years. Full program details can be located on the County of Simcoe's website.
Rapid ARU Grant #2
To further motivate homeowners to rent at an affordable rate, the first 23 homeowners approved for the County of Simcoe's Second Suites Program will receive an additional $5,000 incentive from the Town of Collingwood as a recognition of their commitment to affordable renting.
The maximum incentive amount from the Town of Collingwood for this program is $15,000.00
Eligibility
Property owners may be eligible for a Rapid Additional Residential Unit (ARU) Initiative 2.0 grant if:
- The ARU does not already exist and will be built as a new accessory dwelling unit;
- The property owner does not owe the Town of Collingwood any delinquent debt (i.e. parking tickets, property taxes, water debt, etc.);
- The property is not in violation of any Town of Collingwood By-Laws (i.e. construction without permit, property standards, zoning violations, etc.);
- The ARU is rented on a year-round basis for a period of five years, with proof of a 12-month lease each year; and
- All land use planning permissions are in place.
Limit
Limit one grant application per property.
Before you apply
Prior to applying, it is highly recommended that property owners take the following actions:
- Learn what is permitted on your property. If you have any questions, contact ARU@collingwood.ca
- Understand what will be required to support a Building Permit application. If you have any questions, contact ARU@collingwood.ca
- Check with your bank or mortgage specialist for financing options
- Source a qualified designer to create a detailed site plan/construction drawings
Application Process
Other ARU Funding Opportunities
The federal government also offers a new tax credit for families building on their existing property to offer licing space to relatives in need. The Multigenerational Home Renovation Tax Credit (MGHRTC) is a refundable credit to assist with the cost of renovating an eligible dwelling to establish a secondary unit that entables a qualifying individual (a senior or an adult who is eligible for the disability tax credit) to live with a qualifying relation. For more details visit the Government of Canada's MGHRTC website.