Would you like to construct an Additional Residential Unit (ARU) in your home to help generate rental income or to house family members or caregivers?
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:
|
||||||
| Funding Amounts | ||||||
|
There are two available funding level options and corresponding affordability periods.
|
||||||
| Application Evaluation and Prioritization | ||||||
|
||||||
| 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. You can view or download the guide at the following link: Your Guide to Building Additional Residential Units |
||||||
| Frequently Asked Questions | ||||||
| View our FAQ for answers to frequently asked questions about building an ARU and the District's ARU funding program: ARU FAQ's | ||||||
| How To Apply | ||||||
|
To apply, download and complete the application form (New 2026 Application Coming Soon).
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 |
ARU funding is provided through the MAHIP Capital Incentives Program. Learn more about MAHIP.