Incentives to Create Affordable Housing

The Region offers incentives for developers, builders and landlords to create homes for people who can't afford market rent.

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Capital grants

Every year or two, the Region offers grants to help offset the capital cost of building new affordable and supportive housing.

Since 2001, the Region’s capital grants have helped to create  2153 new affordable rental units.

Who is eligible

Funding is handed out based on responses to requests for proposals (RFP) issued by the Region. To be eligible for funding you must:

  • Be a non-profit or private sector corporation
  • Own or have an accepted offer for land to build on
  • Have proper zoning for the development or have preliminary support from the area municipality for a zone change
  • Keep the units as affordable rental housing for at least 25 years
  • Meet all other requirements in the RFP

Email us to receive calls for proposals when they are issued.

What to submit in an RFP

COCHI and OPHI Guidelines

You can review a copy of our last RFP (now closed) to see the type of information and program requirements typically required in a submission. These may be subject to change.


Secondary suites

If you would like to add an affordable in-law suite to your home, the Region can help you pay for the cost. Funding is available through the Ontario Renovates program.

Visit our Funding for Secondary Suites page to learn more about this program and to apply.


Rent supplement

We encourage landlords to make units available to people on our affordable housing wait list. The Region will cover the gap between how much you charge for rent and how much the tenant can pay.

This program is currently fully subscribed. Applications will once again be accepted when more funding is allocated to this program.

How it works

If you qualify, we inspect your unit(s) and negotiate the rent. We then enter into an agreement with you and refer tenants from the wait list to you. You enter into a lease with the tenant, collect rent, and we pay you the balance.

Who is eligible

This program is open to anyone building or offering rental units, and agencies that offer support services. The units made available can be any type, including owner-occupied, and do not need to be vacant. Eligibility is based on:

  • The need for affordable housing in certain areas
  • The location of the building
  • The cost of rent for units in the building

How to apply

Please mail or drop off a completed rent supplement application form to:

Region of Waterloo, Housing Division
Attention: Assisted and Affordable Housing Program
99 Regina St. S., 4th Floor
Waterloo
N2J 4V3


Property Tax Exemption

The Property Tax Exemption Program allows participating affordable housing providers to have portions of the Region and education property taxes exempt to help them acquire and maintain buildings and keep rents low in the long-term. The program aims to maintain affordable housing buildings that exist in the Waterloo Region, and support housing providers who are committed to affordable rents. 

Visit our Property Tax Exemption page to learn more about this program and to apply.


Other funding

In addition to the Region's capital grants, there are other opportunities for developers to receive funding for affordable housing.

Regional development charge grants

As of June 2024, private developers who create any units that have rents or purchase prices at or below the threshold set out in the Provincial Bulletin will be expected from Regional Development charges. Non-profit developers of affordable housing are also exempted from Regional Development Charges.

Canada Mortgage and Housing Corporation seed funding program

This Canada Mortgage and Housing Corporation program will help you cover some of the soft costs associated with your affordable housing project. You can qualify for up to $150,000 in funding for costs that include:

  • Incorporation
  • Preliminary financial feasibility
  • Developing a business plan
  • Project drawings/specifications
  • Conducting an environmental site assessment

In some cases, this program also provides fully repayable, interest-free loans of up to $350,000. Visit CMHC's website for more information.

Canada Mortgage and Housing Corporation Affordable Housing Fund

This fund provides capital via low-interest and/or forgivable loans and contributions to organizations that have partnered with another organization or level of government and have already secured some funding. It can be used for new affordable housing and the repair and renewal of existing affordable and community housing.

Visit CMHC's website for more information, including how to apply.

Federation of Canadian Municipalities sustainable affordable housing fund

This fund supports local affordable housing providers – including municipal, not-for-profit organizations and housing co-ops – to retrofit existing affordable housing units, or construct energy efficient new builds that emit lower GHG emissions. Funding is offered for planning and study grants as well as capital funding.

Visit the Sustainable Affordable Housing fund for more information, including how to apply.

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