The City is launching two programs to encourage eligible property owners to develop secondary/laneway suites in Toronto and East York District. Details of each program are listed below.

The Development Charges (DC) Deferral Program for Ancillary Secondary Dwelling Units allows for a DC deferral for eligible property owners developing a secondary dwelling unit at the rear yard of a property. The DC would only be collected through creation of a new lot (Plan of Subdivision, Plan of Condominium and Consent to Sever) within 20 years of the issuance of the building permit. This Program was approved by Council in April of 2018.

Who Can Apply

  • must own a property within Toronto and East York District
  • must conform with applicable zoning and other by-laws as determined by Toronto Building through a zoning certificate or building permit
  • must have applied for building permit
  • must enter into a DC Deferral for Ancillary Secondary Dwelling Units Agreement with the City

How to Apply

  1. Applicants must apply for a building permit with Toronto Building.
  2. After you have applied for building permit and reviewed the Agreement, please contact the Housing Secretariat (refer to Contact Information) to initiate the Agreement process.
  3. Once Housing Secretariat staff have determined your eligibility for the Program, you or your lawyer will be sent the Agreement for signature.
  4. After the agreement has been executed, you will need to retain a lawyer to register a Section 118 restriction of the Land Titles Act on title to your property. This restriction will require the City to provide consent with any transfer of the property.
  5. Once the Section 118 restriction has been registered on title, your lawyer will need to provide to the City in writing that it has been registered along with a copy of the registered instrument.
  6. When these requirements have been satisfied, the Housing Secretariat will provide you a confirmation letter that you can bring to Toronto Building for when you pick up your building permit.

If you intend to apply for this program, please do not pay your development charges as the City will not be able to credit back the fee.

DC Deferral for Ancillary Secondary Dwelling Units Agreement

Please see here.

Frequently Asked Questions

Please see here.

 

The Affordable Laneway Suites Pilot Program provides funding in form of a forgivable loan of up to $50,000 for eligible property owners developing a laneway suite. The loan will be forgiven in 15 years from the date when the first tenant occupies the laneway suite. The rent being charged cannot exceed the City of Toronto Average Market Rent, by bedroom type at any time during the 15 year affordability period, as reported annually by Canada Mortgage and Housing Corporation. This Program was approved by Council in June of 2018.

Who Can Apply

  • must own a single family home that is abutting a public lane within Toronto and East York District
  • must conform with applicable zoning and other by-laws as determined by Toronto Building through a zoning certificate or building permit
  • must have applied for building permit
  • must enter into an Affordable Laneway Suites Contribution Agreement with the City
  • must be approved for the Development Charges Deferral Program for Ancillary Secondary Dwelling Units

How to Apply

  1. Applicants must:
    1. have applied for a building permit with Toronto Building, and
    2. be approved under the Development Charges Deferral Program for Secondary Dwelling Units.
  2. Contact the Housing Secretariat (refer to Contact Information) to receive an application form.
  3. Once Housing Secretariat staff have confirmed your eligibility for the Program, you or your lawyer will be sent the Agreement for signature.
  4. After the agreement has been executed, you will need to retain a lawyer to register a mortgage/ charge on title to your property to secure the loan amount.
  5. A copy of the mortgage/ charge document is required as part of the first payment request. Applicants can use this payment checklist as a guide to make payment requests. For complete details and requirements, refer to the Funding Agreement.
  6. Once Housing Secretariat staff have reviewed and approved the first payment request, you will receive a confirmation letter from the City that funding is approved and can begin construction.
  7. Applicants can request for final payment once construction is complete and the laneway suite is occupied by a tenant.

Affordable Laneway Suites Agreement

Please see here.

Frequently Asked Questions

Please see here.

Important notes

  • You must not start any work on site until you have received the confirmation letter that funding is approved.
  • Work must begin within 120 days from when you receive the confirmation letter.
  • As a mortgage/ charge is required to be registered on title to your property to secure the loan, you need to obtain approval from their current mortgagee(s) to secure this mortgage/ charge.
  • Funding is subject to a maximum of $50,000, and this will be reduced if your property has previously received funding from the Residential Rehabilitation Assistance Program (RRAP) or Toronto Renovates Program for repairs.
  • The rent being charged cannot exceed the City of Toronto Average Market Rent, by bedroom type at any time during the 15 year affordability period.
  • The maximum household income limit of the tenant(s) must not exceed the following:
    One person Two or more people
    Household Income Limit $63,400 $96,000