Continuing on our series on grants and incentives, if you’re a homeowner in Hamilton-Wentworth (Hamilton, Ancaster, Dundas, Flamborough, Glanbrook, Stoney Creek) looking to build an Accessory Dwelling Unit (ADU)—such as a tiny home, granny pod, granny suite, in-law suite, garden suite, or laneway home—there are several financial incentives and regulatory considerations to be aware of.
Financial Incentives for ADU Construction in Hamilton-Wentworth:
1. Additional Dwelling Unit and Multi-Plex Housing Incentive Program
The City of Hamilton offers this program to encourage the development of ADUs and small-scale multiplexes (up to six units). Key benefits include:
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Permit Fee Rebates: Up to $2,000 per building permit to offset application costs.
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Forgivable Loans: $25,000 per unit (up to $150,000 per site) for units that meet affordability criteria—specifically, rents not exceeding 100% of the Average Market Rent (AMR) for a minimum of 15 years.
To qualify, your property must be within the Housing for Hamilton Community Improvement Project Area (HHCIPA), excluding Sub Area 2 – Roxborough.
2. Ontario Renovates Secondary Suites Forgivable Loan Program
This program assists homeowners in legalizing existing unpermitted units or, constructing new secondary suites or Accessory Dwelling Units The loan is forgivable if the unit is rented to a new tenant and meets other eligibility requirements. If eligible, an owners could apply for a maximum of $50,000 in a forgivable loan to add a secondary unit or ADU.
3. Commercial District Housing Opportunities Program
For properties in designated commercial districts—including Ancaster, Dundas, Stoney Creek and Waterdown—this program provides:
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Grants: $20,000 per dwelling unit, up to $600,000 per property.
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Professional Fees: Up to $5,000 to cover City and professional fees.
This program was created with the purpose of converting non-residential spaces into residential units or adding ADUs and tiny homes in commercial areas.
Zoning and Building Regulations
It is important to consider Hamilton’s zoning bylaws permit one detached ADU on lots with single-detached, semi-detached, or street townhouse dwellings. Additionally, one internal unit (e.g., a basement apartment) is allowed. Key regulations include:
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Size: Maximum gross floor area of 75m²; must be smaller than the primary dwelling.
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Setbacks: Minimum 1.2m from side and rear lot lines; 4.0m from the primary dwelling.
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Height: Maximum building height of 6m.
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Bedrooms: No more than two bedrooms per ADU.
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Parking: No additional parking required.
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Water Service: The City requires an assessment of existing water service; upgrades may be necessary before a building permit is issued.
Niagara Escarpment Considerations
If your property falls within the Niagara Escarpment Plan (NEP) area—particularly in regions like Pleasantview—you’ll need a Development Permit from the Niagara Escarpment Commission (NEC) before proceeding. This permit assesses the environmental and landscape impact of your proposed development. Municipal building permits can only be issued after obtaining NEC approval.
If you own a property in Hamilton-Wentworth, you may qualify for the programs listed above. Contact Greg at letstalk@smarthomedesign.ca to discuss your goals for adding a secondary suite or ADU to your property today!