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City update

2026 London ARU Grant Update: Expanded Housing Incentives

On April 29, 2026, the City of London approved expanded housing incentives to help more projects move forward before the federal deadline. The update broadens ARU eligibility, adds a new grant for ARUs in new homes, and temporarily waives building permit fees for qualifying new housing until September 7, 2026 or until funding runs out.

Read The City Announcement Read The ARU Grant Guide

Use the update as context, then check whether your lot still fits the opportunity.

The City's policy window is short, so the useful move is to screen the site now.

Decision guide

Use the policy window before it closes

Read the City's update, then screen the property quickly so you know whether the incentive change is actually useful for your lot and timeline.

  • Read the City announcement
  • Confirm the property still fits
  • Check permit timing
  • Review the grant guide

What The City Approved

The City expanded financial incentives to accelerate housing development ahead of the federal Housing Accelerator Fund deadline. The update is time-limited, and several programs are only available for projects that receive building permits between April 29 and September 7, 2026.

When a program window is this short, timing matters as much as the incentive itself.

Read The Official City Announcement Read The ARU Grant Guide

Why This Matters For ARUs And Small Housing Projects

Council broadened the ARU program so it is no longer limited to detached units only. That means more housing types can potentially fit the updated program structure, including basement apartments, garden suites, additions, and other secondary units on eligible residential lots.

  • Eligibility was broadened to allow all types of ARUs on eligible residential properties
  • A new grant was approved for ARUs added to new, unoccupied single-detached homes
  • A temporary permit fee waiver was approved for new housing until funding is exhausted or September 7, 2026

The policy change can make a project easier to start, but it does not replace zoning, permit, servicing, or rent-cap review.

What Homeowners And Builders Should Do Next

If your project might qualify, move from news to screening quickly. The announcement creates an opening, but the project still needs an address-based fit check, a permit path, and a realistic budget before it is worth pricing in detail.

  • Check whether the lot actually works for the ARU you want
  • Confirm the current program rules before you commit to design spend
  • Compare the project against the City's existing ARU grant guide
  • Use the window before September 7, 2026 while funding is still available

FAQ

Common questions, answered plainly

Is the incentive update only for detached ARUs?

No. The City broadened eligibility so all types of ARUs can be considered on eligible residential properties, rather than limiting the program to detached units only.

Does this mean every project gets funding?

No. The programs still have eligibility rules, time limits, and funding limits. A property still has to work for zoning, permits, servicing, and the relevant program conditions.

How long is the permit fee waiver available?

The City said the temporary waiver runs until September 7, 2026, or until the allocated funding is exhausted.

What should I do first if my project might fit?

Start with an address-based screen. Then compare the project against the City's ARU grant guide and permit path before you spend on drawings or builder commitments.

Turn The Update Into A Real Next Step

Use the announcement as a signal to screen the property now, while the incentive window is still open.

Start The Backyard Audit

Next checks

01 London ARU Zoning Rules Check zoning, setbacks, lot coverage, and detached ARU placement rules. 02 ARU Loan Funding Paths Compare London's ARU loan, grant, rent-cap, timing, and cash-flow screens. 03 CMHC Rent Cap Calculator Model the 1-bedroom and 2-bedroom rent caps before relying on the loan. 04 Cost To Build A Detached ARU Review construction, servicing, permit, insurance, tax, and development charge risks. 05 ARU Contractor Checklist Prepare for contractor quotes with zoning, servicing, cost, permit, and loan questions. 06 CMHC ARU Plan Guide Compare catalogue plans before choosing a design direction. 07 London ARU Grant Guide Review the forgivable-loan screens before you spend on drawings. 08 Granny Suite Planning Plan a family backyard suite while checking ARU rules, permits, and funding limits.