Rules, Grants, and What Homeowners Need to Know
As more homeowners look for creative ways to increase property value, generate rental income, or support multigenerational living, Accessory Dwelling Units, also known as Additional Residential Units, have become a popular option in Southwestern Ontario.
What Is an ARU
An Additional Residential Unit is a self contained legal home built on the same property as your main dwelling.Examples include:
- Finished basement apartments
- Garage conversions
- Backyard garden suites
- Additions with a private entrance
Rules and Regulations in London, Ontario
London has taken major steps to support gentle density housing and encourage more housing options.How many units are allowed
- Up to four units total on one lot
- Up to three ARUs per property
- Up to two detached ARUs in backyards
Where ARUs are permitted
- Single detached homes
- Semi detached homes
- Duplexes
- Some townhomes
- Converted dwellings
Zoning and Building Code Requirements
- Must meet setback rules, lot coverage, and accessory building standards
- Detached units must be in a rear or interior side yard
- Must follow the Ontario Building Code
- Must provide proper egress and fire separation and independent systems
Where to get accurate information
- ARU Information: https://london.ca/living-london/building-renovating/additional-residential-units
- Building Permits: building@london.ca
- CIP Incentives: CIPIncentives@london.ca
- Zoning Questions: zoning@london.ca
Grants and Incentives for London Homeowners
1. City of London ARU Loans and Forgivable Loans
- Up to forty five thousand dollars for creating a detached ARU
- Some become fully forgiven when affordability conditions are met
2. Federal Secondary Suite Loan
- Proposed low interest loans up to eighty thousand dollars
- Final details to be confirmed
3. Ontario Renovates Program
- Up to twenty five thousand dollars for seniors or accessibility upgrades
- First five thousand dollars is a grant, not a loan
How ARUs Work in St. Thomas, Ontario
St. Thomas is also moving toward supporting more housing options and secondary units.
Rules and zoning
- ARUs are permitted under updated zoning
- Detached, interior, and attached units are allowed where zoning supports them
- Building permits are required for all ARU construction
Grants and Incentives in St. Thomas
St. Thomas uses a Community Improvement Plan, known as a CIP, to offer grants and loans for:- Residential conversions
- Intensification projects
- Affordable unit creation
- Housing rehabilitation
Where to get information
- City Website: https://www.stthomas.ca
- Planning Email: planning@stthomas.ca
- CIP Inquiries: cpenney@stthomas.ca
- Phone: 519 633 2560
How the Twenty Five Thousand Dollar Senior Grant Works
This is part of the Ontario Renovates Program and applies to both London and St. Thomas.Who qualifies
- Homeowners sixty years or older
- Homeowners with a disability
- Household income within municipal limits
- Limited liquid assets
- Property taxes and mortgage payments must be up to date
What it covers
- Essential home repairs
- Accessibility upgrades such as ramps, bathroom modifications, grab bars, or walk in showers
Forgiveness terms
- Up to twenty five thousand dollars as a ten year forgivable loan
- First five thousand dollars is a direct grant
- If you stay in the home for ten years, repayment is not required
Why Homeowners Choose to Build an ARU
- Higher property value
- Extra monthly income
- A place for seniors to age in place
- Housing for adult children or family
- More options for homebuyers who need rental income to qualify