Rapid ADU Deployment Program: Financial Incentives
Rapid Accessory Dwelling Unit (ADU) Deployment Program grants are now open!
Council has approved this incentive program to encourage the creation of ADUs in Collingwood, providing much-needed rental options for the community. Please note that these incentives are limited to the first 20 eligible participants who successfully obtain Zoning Certificates and Building Permits. Check the eligibility requirements below. The program is structured as follows:
Rapid ADU 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 $5,628.62. This includes $5,000 to help cover ADU start-up costs such as design, site preparation, materials, construction labor, and more, as well as $628.62 that compensates for 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 ADU Grant #2
To further motivate homeowners to rent at an affordable rate, the first 20 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 $10,628.62.
Other ADU 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.
Property owners may be eligible for a Rapid ADU Deployment Program grant if:
- The ADU 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 ADU 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 one grant application per property
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 ADU@collingwood.ca
- Understand what will be required to support a Building Permit application. If you have any questions, contact ADU@colllingwood.ca
- Check with your bank or mortgage specialist for financing options
- Source a qualified designer to create a detailed site plan/construction drawings
Apply for a Zoning Certificate using our online portal.
($40 application fee to be paid up front by program participant.)
Upon receipt of a zoning certificate, the first 20 property owners to apply for a Rapid ADU grant will place holds on Grant #1 and Grant #2 allocations (if more than 20 applications are received, the property owners’ names will be added to a wait list).
The application will ask program participants if they plan to apply for a County of Simcoe Secondary Suite Program.
- If yes, Grant #2 funds will be held for the program participant, pending proof of the County of Simcoe’s Secondary Suite Program approval*.
- If no, Grant #2 will be returned to the program fund.
* If, at any time, the County of Simcoe notifies the Town of Collingwood that the County’s Secondary Suite Program loans are no longer available, Rapid ADU Program participants will be notified and the funds previously allocated for Grant #2 will be added to the program fund. The Town of Collingwood will not be held responsible for any changes to the County of Simcoe program and the Town will not be required to pay out Grant #2.
Program participants will have 60 days from their Rapid ADU Grant application to apply for a Building Permit using our online portal.
($588.62 permit fee to be paid up front by program participant.)
If a program participant has not applied for a Building Permit within 60 days, they will be notified that their grant window has expired. The grant opportunity will be offered to the next person on the wait list or the next person to submit a grant application. The program participant may apply for the Rapid ADU Deployment Program grant again but will go to the bottom of the wait list.
Upon receipt of a Building Permit, the first 20 program participants will receive a grant from the Town of Collingwood in the amount of $5,628.62. Program participants who are also participating in the County of Simcoe’s Secondary Suite Program and have submitted proof of approval in the County’s program, will receive an additional $5,000 grant for a total of $10,628.62.
Grant funds will be provided via Electronic Fund Transfer where possible.