Cambridge property owners could get financial incentive for building another unit

The City of Cambridge is hoping to incentivize people to build more residential units on their property through a new program.

A report with information about an Additional Residential Unit (ARU) Financial Incentives Program will be brought to council Aug. 6.

The report going to council shows them why a financial incentive for property owners could help boost new housing construction in the city within the next few years.

A rebate of up to $10,000 would come specifically out of a $1.5 million budget which was part of the Housing Accelerator Fund (HAF) application the city submitted a year ago. The rebate could be given to qualified applicants in Cambridge that complete construction on an additional residential unit.

Cambridge was selected in February to participate in the HAF program. Last year ARU accounted for 21 per cent of all permits issued for dwelling units.

In the report to council, it says the program can only be accessed once and for only one unit per property. It also says ARUs represent 25 per cent of the total building permits the city has committed to issuing over the next three years.

To create this program, a Community Involvement Plan must be approved by council prior. City staff are recommending that a final version of that plan and an implementing bylaw return to council later this year.

The ARU incentive is one of nine initiatives the city committed to when applying for the HAF program that is administered by Canada Mortgage and Housing Corporation (CMHC).

The report states that applicants are eligible for a rebate on costs incurred for upgrading of sanitary and water services, professionally prepared permit drawings and hard construction costs for things like labour and materials.

Construction of a single ARU ranges from $3,600 to $486,000 with an average cost of $47,232 according to data the city pulled from previous permit applications.

According to the report, “The City is on track to issue approximately the same number of permits for the creation of new ARUs in 2024 as in 2023.”

Part of the Community Involvement Plan is to consult with the public by posting a draft of the plan online with instruction for people to provide some feedback on it. They will also hold a Statutory Public Meeting.