District Launches Two Programs to Support Affordable Housing in Muskoka

Forgivable Loan and Head Lease Programs Support First-Time Homeowners and Rental Housing 

Muskoka, ON - The District of Muskoka is taking action to address the growing need for affordable housing across Muskoka. 

Applications are now open for two new funding programs:  

• Development Charges Forgivable Loan Program for first-time homeowners 
• Head Lease Funding Program for developers and landlords 

“With affordability challenges only increasing right now, we are rolling out two programs that can help both Muskoka residents and builders with housing costs. As promised, we are reducing the cost of District development charges for first-time homebuyers,” said Jeff Lehman, Chair of the District of Muskoka. “Second, our Head Lease Funding Program is now open for business, introducing a new approach to help increase the supply of rental housing.” 

About the Development Charges Forgivable Loan Program 

• The District will help first-time homebuyers in Muskoka pay development charges for a new home. Development charges are fees collected when a building permit is issued to support roads, water, sewer, and other services. 
• Eligible homebuyers may receive a forgivable loan of up to $15,000. The loan does not need to be repaid if program requirements are met for three years. 
• Funding is limited and dependent on available funds. Residents interested in the program are encouraged to submit their application at www.muskoka.on.ca/en/housing/development-charges-forgivable-loan-program.aspx or contact the Affordable Housing Office to discuss their application at affordablehousing@muskoka.on.ca or 705-645-2100 ext. 4410. 

About the Head Lease Funding Program  

• The District will lease units from landlords and provide stable, guaranteed monthly payments. The District will then sublease the units to residents who need affordable housing. This reduces some management activities for the landlord.  
• Applications are open until Friday, June 5, 2026. Developers and landlords interested in the program are encouraged to submit their application at www.muskoka.on.ca/mahip or contact the Affordable Housing Office to discuss their proposal at affordablehousing@muskoka.on.ca or 705-645-2100 ext. 4410. 

-30- 

Creating more safe, attainable, and sustainable housing to call home. It’s what we do.  

The District of Muskoka is made up of six area municipalities and is responsible for delivering critical public services and programs to residents in our community. Visit our website at www.muskoka.on.ca. For updates by email, subscribe to News Updates on our website.  

Media Relations  
media@muskoka.on.ca