St. Catharines Boosts Housing Innovation with Increased Grants and Streamlined Accessory Dwelling Unit Programs

Estimated reading time: 7 minutes

Key Takeaways

• The federal Housing Accelerator Fund is backing local innovation with increased ADU grants.
• Interior ADUs now receive up to $40,000 and exterior ADUs up to $80,000.
• Over 41 new ADUs received grants in just six months, with more than $2 million allocated.
• ADUs represent 50% of the city’s housing permits, supporting multi-generational living and rental income opportunities.
• St. Catharines is set to receive $25.7 million over four years for further housing innovation.

St. Catharines is making impressive strides in addressing local housing needs. With its renewed focus on accessory dwelling unit (ADU) grants, the city is boldly embracing change by utilising increased federal funding to support innovative housing options. Residents are already seeing the benefits as new apartments add value to existing properties.

In a move designed to boost home renovations and multi-generational living, city council doubled the maximum grant for interior ADUs—from $20,000 to $40,000—and quadrupled funding for exterior ADUs, raising the cap from $20,000 to $80,000. This strategic increase in funding was met with an enthusiastic response: 41 new ADU grants approved in only six months, which collectively allocated over $2 million to local homeowners.

The city is not stopping at increased financial support. St. Catharines has streamlined the entire application process by launching online permit portals and updated planning tools. Initiatives such as the BuildSTC e-permit portal, CIVIC maps planning tool, and a one-day permit program for detached ADUs are pioneering a more accessible and efficient system. As Margaret Josipovic, Senior Manager of the Housing Accelerator Program, noted, these developments are making a notable difference in local housing trends.

Despite challenges including high interest rates, increased construction and labour costs, and a slower development market, the city has maintained a positive outlook. Although the federal target of 952 new residential units was not met—coming in at 390 units, which aligns with the city’s historical averages—the broader impacts on the community have been substantial. This round of ADU grants represents both a commendable achievement and a stepping stone for future projects.

Looking ahead, St. Catharines is gearing up for further innovation. With an additional request of $24 million to extend the grant program, alongside proposals to expand support for municipal development and purpose-built rental housing, the city’s leaders are paving the way for a future where diverse, attainable, and forward-thinking housing solutions flourish. This proactive approach underscores the community’s commitment to improving housing accessibility and affordability.

Frequently Asked Questions

• What are Accessory Dwelling Units (ADUs)?

  ADUs are secondary housing units on single-family lots—for example, basement suites or garden suites—designed to offer additional living space and flexibility.

• How has funding for ADUs changed in St. Catharines?

  The city has doubled the funding for interior ADUs and quadrupled it for exterior ADUs, resulting in significantly higher grant amounts to support homeowners.

• How does this initiative benefit the community?

  It supports multi-generational living, provides homeowners with opportunities to generate rental income, and addresses local housing shortages with innovative design and streamlined processes.

• What are the future plans for housing in the city?

  St. Catharines is planning to request additional funding and implement further strategies—including modernised permit systems and zoning bylaw amendments—to foster dynamic growth in affordable housing.