Further Unlocking Housing Potential—for your family! ADU Grants and Incentives in Niagara Region
As housing affordability becomes an increasing concern, municipalities in the Niagara Region are introducing financial incentives to encourage the development of Accessory Dwelling Units (ADUs), otherwise known as tiny homes, granny pods, secondary suites, granny flats, garden suites, etc. These initiatives aim to expand affordable housing options while providing homeowners with opportunities to maximize their property’s potential. In today’s post, we are specifically looking at what the Niagara Region offers, as well as Fort Erie and St. Catharines so that you and your family can own a home in Niagara!
Niagara Region: Supporting Affordable Housing Development
At the regional level, Niagara offers the Welcome Home Niagara Home Ownership Program which may provide relief in the purchase of an ADU. This program offers down payment assistance through a forgivable loan for eligible applicants purchasing a home.
The status of programs would need to be verified, as well as eligibility criteria, but this programs from the Niagara Region is certainly worth exploring when considering an ADU on a property in Niagara.
Fort Erie: Additional Dwelling Unit Grant
The Town of Fort Erie offers a one-time Additional Dwelling Unit Grant to assist homeowners in adding a new, detached accessory structure. This initiative is part of the town’s Affordable Housing Community Improvement Plan, aiming to increase affordable rental or ownership housing options, is comprised of three incentive programs. Each program provide financial assistance to offset costs associated with developing new affordable housing units. The programs offered will provide funding up to $20,000 to eligible properties/projects to a maximum of $500,000 per project.
The Additional Dwelling Unit Grant offers a one-time grant to help with the cost of adding an additional apartment unit to an existing home or within an existing or new detached accessory structure.
St. Catharines: Up to $80,000 in ADU Grants
While funding for this grant program is currently at capacity, the City of St. Catharines is still accepting applications for this grant program as it anticipates new funding in early 2026. The City of St. Catharines has significantly enhanced its Accessory Dwelling Unit (ADU) Program under the Community Improvement Plan. As of August 2024, homeowners can access up to $80,000 for exterior ADUs (e.g., detached tiny homes, ADUs, garden suites).
These grants cover up to 70% of eligible project costs and are funded through the federal Housing Accelerator Fund. Notably, homeowners can submit multiple applications per property, with a cumulative grant cap of $80,000. Applications must be submitted within 90 days of building permit issuance. While the funding for the program has been depleted for 2025, as mentioned, the City is still accepting applications on a first-come, first-served basis, so any interested parties should still take advantage of this program and submit an application.
Conclusion
There are a range of financial incentives to develop Accessory Dwelling Units, contributing to the expansion of affordable housing so that your family can live in a home you own. Whether through grants in St. Catharines or Fort Erie, or regional programs, these initiatives provide valuable opportunities to enhance property value and address housing needs.
For more information, contact Greg at letstalk@smarthomedesign.ca to explore these programs further.