Affordable ARU Funding Program

Do you have room in your backyard for a small home? Could you renovate your basement into an apartment?

Bruce County is offering financial support to homeowners who build an affordable rental unit on their property.

The Affordable Additional Residential Unit (ARU) Funding Program offers up to $50,000 in funding assistance to eligible homeowners for ARU construction.

The program is ideal for:

• Empty nesters or seniors with unused basements or extra space.
• New homeowners looking to offset mortgage costs.
• Residents who own a large property or a rural/farm property. ARUs can be built as separate, detached structures in backyards or on farms, providing even more flexibility for innovative housing solutions.
• Anyone looking to transform underutilized space into a creative housing solution that benefits both their household and their community.

ARUs enhance community housing by increasing the availability of private rental options. ARUs are generally faster to build, and units can often be added while maintaining the character of established neighbourhoods and the countryside.

For homeowners, ARUs provide a source of rental income, helping offset the costs of homeownership and maintenance. ARUs also offer flexibility to families to have live-in caregivers, enable seniors to live independently within a family setting, or house young adults.

For more information on ARUs, read the step-by-step guide on how to develop an ARU.

Affordable ARU Funding Program Details

Funding:

Funding is provided for up to 75% of the total construction costs to a maximum of $50,000 in the form of a forgivable loan.

Funding amounts are tailored to each applicant. This funding structure recognizes that creative ARU solutions come in many forms and scales, allowing homeowners to pursue innovative designs and approaches that best suit their property and circumstances.

The specific funding allocation for each project is determined based on the feasibility of the proposed ARU, the number of eligible applications and the unique construction requirements of each homeowner's vision. This ensures funding decisions reflect the diverse and inventive nature of ARU projects while maximizing the program's impact. Funding remains available until program resources are fully allocated.

Homeowner Eligibility:

• Homeowners of single-detached properties in Bruce County.
• Intended property must be the primary residence of the homeowner.
• Homeowner(s) must be the sole owner of the property.
• Home insurance, mortgage and property taxes must be up to date.

Requirements:

• Planning Construction:
  Local planning and building approvals must be obtained. An occupancy permit will signal project completion.
• Affordability Commitment:
  New units must be rented at affordable rates for 10 years.
• Rental Rates:
  Must be at or below Canada Mortgage and Housing Corporation's Average Market Rent ($1,236 for one bedroom, $1,531 for two bedroom) for the duration of the agreement (10-years).
• Income Requirements:
  Renter’s household income must be at or below $67,200 annually.
• Agreement Term:
  Full funding amount registered on title for 10 years.

Download the application package.

Deadline to apply: November 21, 2025 

More Information:

Forgiveness is for a 10-year period and is earned at an equal rate per year over the affordability period beginning on the date of project completion.

If the loan is in default, the homeowner will be required to repay the County based on the forgiveness rate.

Where possible, applications will be approved equitably across the inland, lakeshore and peninsula regions. Applications will be reviewed and approved on a rolling basis until the allocation of funds is depleted.

Community-Based Housing Solution:

The program is designed to address our community’s growing need for long-term, stable, affordable rental housing, providing financial support to homeowners so they can be part of a solution.

The Affordable ARU Funding Program represents Bruce County's commitment to innovative housing solutions that benefit both homeowners and renters while strengthening local communities through increased affordable housing options.

The program launched in 2024 as a pilot project and two homeowners were successful in receiving $50,000 each to construct an ARU, with projects currently under construction.

Thank you, Bruce Power:

The 2025 program is supported in part by Bruce Power’s Seed Funding Program for Affordable Housing, granted to Bruce County in partnership with eight municipalities.