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Programs for Builders, Developers and Homeowners

HomeHousing Programs for Builder, Developers and Homeowners
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Help Increase Affordable Housing in Muskoka

Through the Muskoka Affordable Housing Initiatives Program (MAHIP), the District offers funding opportunities to builders, developers, and homeowners to help increase affordable housing in Muskoka. Read more about the funding opportunities available below.

Funding for Multi-Residential Rental Units

Through Capital Incentive Funding, the District will provide up to $100,000 per unit for developers and builders to create affordable rental housing through new construction or conversions of existing buildings such as schools, churches, or retail spaces, into multi-unit housing.

Program Requirements

To be eligible for funding, applicants must meet the following requirements:

  • Rental units must be at or below District Alternative Average Market Rent, and incoming tenants must have incomes at or below the District set limit.
  • The rent limits must be maintained for a set amount of time depending on the funding amount and corresponding affordability period (see the Funding Amounts tab below).
  • The application is for new construction or for a renovation/conversion where new units are created (e.g. single home converted into a duplex or commercial property converted into housing).
  • Capital Incentive Funding Agreement to be registered on title for the respective affordability period.
Funding Amounts

Through Capital Incentive Funding, developers, builders and homeowners may be eligible to receive funding towards the construction of rental housing. Applicants can select one of four funding amounts based on the length of time the unit will remain affordable (i.e. the affordability period), as outlined in the table below.

Affordability Periods
Funding Amount Affordability Period
$15,000 7 Years
$40,000 10 Years
$80,000 20 Years
$100,000 25 Years
Application Evaluation and Prioritization
  • Applications will be reviewed and scored to assess the degree to which the proposed projects address program priorities, such as demonstrated financial viability, time to occupancy, partnerships or other funding sources, in-demand unit types based on social housing waitlists, location, good planning practices, and number of units created, among other considerations.
  • For the complete list of evaluation criteria, please see the Evaluation Scoring Matrix, which may be downloaded here.
How To Apply

Applications are now being accepted for the 2025 Multi-Residential Unit Capital Incentives Funding program.  The application window will close on Sunday, April 13, 2025 at 11:59 p.m.  

To apply, download and complete the application form. 

Submit the application form by email to affordablehousing@muskoka.on.ca or by mail to: 

The District Municipality of Muskoka

70 Pine Street

Bracebridge, ON

P1L 1N3

For additional information about Capital Incentive programs please contact the Affordable Housing Office at 705-645-2412 ext. 4410 or via email.

Funding for Additional Residential Units (ARUs)

An ARU is a self-contained living space that can be attached to or within a single-family home, such as a detached, semi-detached, or townhouse, or located in an accessory or standalone building on the same property. Examples of ARUs include an addition to the main dwelling, a basement apartment, an apartment above a garage, or a standalone garden suite.

ARUs enhance community housing by increasing the availability of private rental options. ARUs are generally faster to build, and units can often be added while maintaining the character of established neighbourhoods.

For homeowners, these units provide a source of rental income, helping offset the costs of homeownership and maintenance. They also offer flexibility for families to have live-in caregivers, enable seniors to live independently within a family setting, or house young adults.

Muskoka property owners can receive $40,000 or $50,000 per unit in the form of an interest-free forgivable loan to construct up to two units on their property. Learn more about the program below:

Program Requirements
 To be eligible for funding, applicants must meet the following requirements:
  • Rental units must be at or below District Alternative Average Market Rent, and incoming tenants must have incomes at or below the District set limit.
  • The rent limits must be maintained for a set amount of time, depending on the funding amount and corresponding affordability period (see the Funding Amounts tab below).
  • The application is for the creation of a new ARU.
  • Capital Incentive Funding Agreement to be registered on title for the respective affordability period.
Funding Amounts

 There are two available funding level options and corresponding affordability periods.

Affordability Periods
Funding Amount Affordability Period
$40,000 10 Years
$50,000 15 Years
Application Evaluation and Prioritization
  • Preference will be given to projects that have shorter times to occupancy, are located in urban or community areas, and are located on owner-occupied properties.
  • The date the application is received will also be considered when prioritizing projects for funding. 
Your Guide to Building Additional Residential Units

The District has created a guide that outlines the typical steps in the ARU permitting and construction process.  To access "Your Guide to Building Additional Residential Units," click here.

Frequently Asked Questions
For answers to frequently asked questions about building an ARU and the District's ARU funding program, click here.
How To Apply

Applications are now being accepted for the 2025 Additional Residential Units Funding program.    

To apply, download and complete the application form. 

Submit the application form by email to affordablehousing@muskoka.on.ca or by mail to:

Affordable Housing Department

The District Municipality of Muskoka

70 Pine Street

Bracebridge, ON P1L 1N3

For additional information about Capital Incentive programs please contact the Affordable Housing Office at 705-645-2412 ext. 4410 or via email

 

Landlord Rent Supplement Program
The Landlord Rent Supplement Program is available through the MAHIP program. Landlords may be eligible to enter into rent supplement agreements where they receive a direct payment for a portion of the monthly rent (average of $235 per unit per month) toward rental units. Click here to learn more: Landlord Rent Supplement Program

Development Charges: You may be required to pay development charges for land development or redevelopment projects if you are constructing a new building, making an addition or alteration to an existing building that increases the number of dwelling units or the non-residential gross floor area or redeveloping a property or making interior alterations that result in a change of use to all or part of the building. Learn more about development charges by clicking this link.

Join us in making a positive impact on our community by staying connected and informed - Sign up to our mailing list today! Our emails will bring you the latest funding opportunities, educational resources, and relevant updates concerning affordable housing. Sign up now at the following link: Join the Affordable Housing Mailing List
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Contact Us

The District Municipality of Muskoka

70 Pine Street
Bracebridge, ON P1L 1N3

Phone: 705-645-2100
Fax: 705-645-5319

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