The Affordable Laneway Suites Pilot Program provides funding in form of a forgivable loan of up to $50,000 for eligible property owners developing a laneway suite. The loan will be forgiven in 15 years from the date when the first tenant occupies the laneway suite. The rent being charged cannot exceed the City of Toronto Average Market Rent, by bedroom type at any time during the 15 year affordability period, as reported annually by Canada Mortgage and Housing Corporation. This Program was approved by Council in June of 2018.
Who Can Apply
must own a single family home abutting a public lane and is located within an area permitted by By-laws 810-2018 PDF and 1210-2019 PDF
must conform with applicable zoning and other by-laws as determined by Toronto Building through a zoning certificate or building permit
must have applied for building permit
must enter into an Affordable Laneway Suites Contribution Agreement with the City
must be approved for the Development Charges Deferral Program for Ancillary Secondary Dwelling Units
How to Apply
have applied for a building permit with Toronto Building, and
be approved under the Development Charges Deferral Program for Secondary Dwelling Units.
Contact Chip Au, Housing Secretariat (Chip.Au@toronto.ca) to receive an application form.
Once Housing Secretariat staff have confirmed your eligibility for the Program, you or your lawyer will be sent the Agreement for signature.
After the agreement has been executed, you will need to retain a lawyer to register a mortgage/ charge on title to your property to secure the loan amount.
A copy of the mortgage/ charge document is required as part of the first payment request. Applicants can use this payment checklist PDF as a guide to make payment requests. For complete details and requirements, refer to the Funding Agreement.
Once Housing Secretariat staff have reviewed and approved the first payment request, you will receive a confirmation letter from the City that funding is approved and can begin construction.
Applicants can request for final payment once construction is complete and the laneway suite is occupied by a tenant.
You must not start any work on site until you have received the confirmation letter that funding is approved.
Work must begin within 120 days from when you receive the confirmation letter.
As a mortgage/ charge is required to be registered on title to your property to secure the loan, you need to obtain approval from their current mortgagee(s) to secure this mortgage/ charge.
Funding is subject to a maximum of $50,000, and this will be reduced if your property has previously received funding from the Residential Rehabilitation Assistance Program (RRAP) or Toronto Renovates Program for repairs.
The rent being charged cannot exceed the City of Toronto Average Market Rent, by bedroom type at any time during the 15 year affordability period.
Affordable Laneway Suites Program: