Incentives for building affordable housing

If you are a private or non-profit developer building new rental units that will increase Mississauga’s supply of affordable and below-market rental housing, you may be eligible for financial incentives through the City’s Affordable Rental Housing Community Improvement Plan. The program is capped at $44 million in available incentives. 

Available incentives

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

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)

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)

Eligibility requirements

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

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

Minimum unit sizes:

• 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

How to apply

If you think your project may qualify for the program, email us at catherine.parsons@mississauga.ca to set up an initial discussion. In your email, include:

• Project site and brief description of your proposal
• Project’s current status regarding planning approvals
• Preliminary ideas about the number of affordable units

How projects get selected

The program has a capped funding amount that must be spent by the end of 2027. Projects will be prioritized on a first-come, first-served basis, and a building permit is required to secure funding.

What happens next

If your project meets eligibility requirements, you will receive confirmation from the City within approximately three weeks.

If you don’t receive a confirmation about your application’s status within the timeframe, email us at catherine.parsons@mississauga.ca.