• Stouffville’s new Affordable Housing Community Improvement Plan aims to increase housing supply and affordability through financial and non-financial incentives.
  • Market challenges, including high land costs and construction expenses, are slowing housing development, leading to the Town’s consideration of targeted incentives through the CIP.
  • Possible financial incentives include development fee waivers, accessible design top-ups, and ARU, purpose-built rental creation, tax increment, and infill infrastructure grants.
  • The CIP has a combined budget of $975,000, funded through the Housing Accelerator Fund.
  • Non-financial options include a surplus public lands policy for residential development, inclusionary zoning, and ARU design guides.
  • Smaller projects like ARUs can achieve financial viability with limited subsidies, while larger projects require more funding.
  • Compliance mechanisms, including forgivable loans over up-front grants, would help ensure units remain affordable long-term.
  • Public feedback was gathered through September, and a public meeting presenting the plan is set for Nov. 5.

 

Stouffville is advancing a new Affordable Housing Community Improvement Plan (CIP), a policy tool aimed at increasing housing supply and affordability through targeted financial and non-financial incentives. The CIP, which includes a preliminary study and initial implementation, carries a combined budget of $975,000.

The program is funded through the Federal Housing Accelerator Fund, following Ottawa’s award of $8 million to the Town earlier this year to support local housing initiatives. Stouffville developed a Housing Action Plan as part of the fund’s application process, with the CIP serving as a central element of that strategy.

Michelle Diplock, a consultant with Nethery Planning, presented the CIP study to Council on Sept. 17. It will be one component in a broader effort to restart Ontario’s stalled housing sector and tackle the housing crisis, joining ongoing efforts by the Province, Region, and local municipalities to reduce Development Charges and other building costs.

“The vision is about building the foundation of a complete community through supporting a diverse range of housing options that meet the needs of residents across all ages, incomes, and abilities,” Diplock said. “As well as advancing housing across the full continuum, from affordable to market rate housing, which will help create a more inclusive, livable, and sustainable community for all.”

The CIP is proposed to only apply within the Community of Stouffville, excluding the Town’s hamlets and rural areas, such as Ballantrae, Musselman’s Lake, Bloomington, Gormley, Vandorf, and Preston Lake. Diplock said this focus is due to the availability of municipal services, transit, and other community supports concentrated within the urban core.

Detailed in a recent Staff report, the Affordable Housing CIP study outlines possible incentives intended to reduce development costs and encourage a wider mix of housing types. Proposed financial measures include waiving portions of planning and building permit fees, and a program to help residents add Additional Residential Units (ARUs) to their home or property.

The ARU initiative would provide assistance for constructing new units or bringing existing units up to code, reflecting growing interest in the housing type demonstrated by increased permit activity. ARUs offer gentle infill opportunities compared to larger developments, expanding housing choice within established neighbourhoods with minimal disruption.

For the purposes of the plan, Diplock adopted York Region’s definition of affordable housing: ownership housing where annual accommodation costs do not exceed 30 percent of gross household income, or rental housing priced at or below 125 percent of average market rent in the regional market area.

A separate rental creation grant could offset construction or retrofit costs for new purpose-built rentals, supporting economic feasibility while expanding Stouffville’s minimal rental stock. Other financial tools under consideration include a tax increment equivalent grant to mitigate increased property taxes for multiplexes and mid-density apartments, and an infill infrastructure grant to help cover the cost of required public works such as water connections or road upgrades.

An “accessible design top-up” grant would add funding for projects that include barrier-free or universal design features. By combining this with other programs, the Town hopes to encourage housing that accommodates residents with mobility challenges and enables seniors to age in place—a topic Brad Evoy of the Accessible Housing Network and local resident and accessible housing advocate Salvatore Amenta spoke to during the meeting.

The study also examines several non-financial measures, including a surplus lands policy to prioritize underutilized municipal properties, a housing reserve to strategically fund projects, ARU design guides to streamline approvals, and a potential inclusionary zoning by-law to integrate affordable units into new developments. Together, the incentives are intended to reduce barriers for builders and homeowners, while ensuring new housing options reflect the diverse needs of the community

While the range of programs are under consideration, not all proposals are expected to be implemented in the final CIP. Furthermore, the number of grants and incentives offered will be constrained by available funding. If support from the Housing Accelerator Fund expires, Stouffville will need to decide whether to absorb costs into its municipal budget.

UrbanMetrics’ Bohan Li presented financial scenarios for both conversion and new build ARUs, a block of 51 townhouses, and a six-storey, 110-unit apartment building. His findings suggested smaller-scale projects, such as ARUs, often achieve financial viability with limited subsidies, while larger rental developments require considerably more support.

Given today’s market conditions and land costs, Li estimated the minimum level of incentives needed to make building new housing worthwhile for property owners and developers. A converted ARU would require no subsidy, while a new ARU might need $20,000. Townhouse units could require $98,000, and a single apartment unit $122,000.

Additional subsidies to achieve and maintain affordability were also calculated. Given approximate owner revenue losses from providing affordable rental rates, Li suggested a converted ARU would need $17,000, a new ARU $31,000, a townhouse $40,000, and an apartment $30,000.

Mayor Iain Lovatt pressed for further analysis on incentives for triplexes or fourplexes, which he said may better suit Stouffville’s needs given land constraints. “Your average person is not going to build a six-storey apartment,” he said, adding that landowners may be more interested in developing larger single-detached lots into fourplexes, which fit more seamlessly into existing neighbourhoods.

Concerns were raised about program integrity, with a focus on ensuring subsidized units remain affordable long-term. Diplock noted enforcement mechanisms could include forgivable loans tied to compliance rather than up-front grants not requiring follow-up. “There are different tools we can use through program design to ensure we’re not providing incentives that aren’t being used in alignment with the program,” she explained.

Diplock and her team collected public and stakeholder feedback through September and are expected to return to Council later this month with refined recommendations. A public meeting is scheduled for Nov. 5, 2025, at 7 p.m. in Council Chambers at 111 Sandiford Dr., providing a formal opportunity for the public to comment before the CIP is considered for adoption in December.