Incentives for building affordable housing

In August 2024, the City approved the Affordable Rental Housing Community Improvement Plan to offer incentives to private and non-profit developers building new affordable rental units in Mississauga. The program was capped at $44 million in available incentives.

Program funding has been conditionally allocated to eligible applicants who applied by January 10, 2025. If more funding becomes available, the City may reopen applications. Subscribe to receive program updates.

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Conditionally funded projects

The City received 12 applications from non-profit and private sector developers during an open call for applications. Projects were prioritized on a first-come, first-served basis.

Successful applicants will receive a set capital grant per affordable unit and waivers/grants for certain municipal fees and charges. Non-profit affordable housing providers will also get their planning application fees waived.

Eight applications were conditionally approved for funding. These projects will bring 1,400 new purpose-built rental units to Mississauga, including almost 400 affordable and below-market rental units.

Read the announcement for a full list of funded development projects.

About the program

Incentives for affordable units

Affordable units must rent at or below 100% average market rent.

• $130,000 grant per unit
• The City will provide a grant to cover the cost of building permit fees
• These units are also eligible for the provincially legislated exemptions for affordable housing units (City, Region and GO Transit development charges, community benefits charge, and cash-in-lieu of parkland)

Incentives for below-market units

Below-market units must rent at or below 125% average market rent.

• $60,000 grant per unit
• The City will provide a grant to cover the cost of building permit fees
• The City will provide a grant to cover the cost of municipal fees (City development charges only, community benefits charge and cash-in-lieu of parkland)

Maximum monthly rent

Funding is available for private or non-profit rental development projects that create:

• Affordable units with rents at or below 100% average market rent
• Below-market units with rents at or below 125% average market rent

The current maximum monthly rents are identified in the following table. This table will be updated annually in accordance with the Provincial Affordable Residential Units for the Purposes of the Development Charges Act, 1997 Bulletin.

Projects must have at least five affordable or below-market units and maintain a 25-year affordability term.

Minimum unit sizes

Projects must also meet the minimum unit size requirements to qualify:

• 47 square metres (505 square feet) for 1-bedroom units
• 63 square metres (678 square feet) for 2-bedroom units
• 79 square metres (850 square feet) for 3-bedroom units

Contact us

For more information about the Affordable Rental Housing Community Improvement Plan, email housingincentives@mississauga.ca.