With housing pressure increasing in Waterloo, Ontario, homeowners are looking to maximize their property’s potential. One of the most powerful tools right now? The City of Waterloo Additional Residential Unit (ARU) Grant Program. At MW Drafting & Design, we specialize in ARU / secondary-suite design and drafting — and we’ll walk you through not just what the grant covers, but how we help you design your ARU and prepare the drawings and documentation you’ll need for your grant application and permitting.
What Is the City of Waterloo ARU Grant Program?
1. Purpose and Scope
The ARU Grant Program is offered by the City of Waterloo to encourage the creation of additional residential units (ARUs) — including both interior units (like basement apartments) and detached units (like coach houses).
It’s part of a broader housing strategy: ARUs help add more housing in already developed neighbourhoods, using existing infrastructure.
Funding comes from Waterloo’s Housing Accelerator Fund.
2. Types of Eligible ARUs & Grant Amounts
According to the City’s grant criteria:
Detached ARU (e.g., coach house): up to 50% of eligible project costs, capped at $30,000.
Interior ARU (e.g., basement apartment, in-law unit): up to 50% of eligible costs, capped at $20,000.
Eligibility: The property must be within a zoning district where ARUs are permitted under Zoning Bylaw 2018-050.
Affordability requirement: The new ARU must be rented at an affordable rate (defined by Waterloo) for at least 5 years.
Timing constraints: Once the grant is approved, you have 120 days to apply for and obtain a building permit, and 1 year to complete and occupy the ARU.
Post-construction required documents: To receive the grant payout, you need to submit items like the occupancy permit, lease, tenant income confirmation, receipts, and proof of insurance.
Compliance: The ARU must comply with the Ontario Building Code, the City’s Zoning By-law, the Residential Tenancies Act, and other relevant regulations.
3. Permitting and Licensing
Building permit: Required before any construction begins.
Rental licence: If you plan to rent the ARU, you must obtain a residential rental licence through the City.
Zoning tools: Waterloo’s ARU Toolkit (PDF) guides you through how to plan, design, and apply for permits.
Why the Grant Is Particularly Attractive in Waterloo, Ontario
Financial Support: Getting up to $20,000–$30,000 off your cost of building an ARU is a big help, especially given construction costs.
Affordability Commitment: By agreeing to rent at below-market rates for 5 years, homeowners support the city’s affordable housing goals while also unlocking grant funding.
Regulatory Clarity: Waterloo’s zoning now permits more density — up to 4 units on some low-rise lots.
Strong Demand: Given challenges in the rental market, adding an ARU can be both socially beneficial and financially practical.
How MW Drafting & Design Supports Your ARU Project
At MW Drafting & Design, we provide full-service architectural and drafting support specifically tailored for ARUs, secondary suites, and multi-residential conversions. Here’s how we help, especially in the context of the Waterloo ARU grant:
1. Permit-Ready Design & Drafting
Our team is BCIN-certified and deeply familiar with the Ontario Building Code (OBC) as well as municipal requirements.
We deliver permit-ready drawings (site plans, floor plans, elevations, sections) that meet the City of Waterloo’s building permit requirements.
For detached structures (coach houses), conversions, or interior suites, we tailor the design to maximize space, comply with zoning, and optimize construction cost.
2. Zoning Review & Minor Variance Support
If your property needs a minor variance (for setback, height, or other zoning issues), we can help prepare and submit the application.
We conduct a zoning feasibility study early on to make sure your ARU plan fits within Waterloo’s Zoning By-law 2018-050 or identify what needs to change.
3. Documentation for Grant Application
Preliminary drawings: We can produce concept or preliminary plans that you can include in your grant application. The City’s ARU grant application form even allows uploading of “preliminary drawings” or a “project plan.”
Project timeline: We help you map out a realistic project plan (design → permit → construction) that aligns with the grant’s 120-day permit and 1-year build requirement.
Cost estimation support: While not a contractor, our design packages provide enough detail to generate estimates, helping define “eligible project costs” for the grant.
To get started or to talk through your vision and discuss viable ARU options, contact us today.
4. Post-Construction Support
As part of the grant’s conditions, you'll need to submit paid invoices or receipts for your construction costs. We ensure that our design documentation aligns with what's needed for the grant payout.
Occupancy permit: We design in a way that supports a smooth building inspection and occupancy permit process.
Lease & legal compliance: MW Drafting understands the grant’s requirement for a standard lease and legal agreement, and we can guide you to ensure your design supports that.
5. Integrated Build Option (via Partner)
We partner with Suite Builders a design-build firm that handles everything from permit drawings to construction for ADUs, coach houses, basement suites, and more.
This means you can streamline your project — from design through to construction — with a single, coordinated team making sure you remain eligible for the grant while building efficiently.
Common Questions (FAQ) About ARUs, the Grant & MW Drafting’s Role
Q: Can I apply for the grant if I already have a building permit?
A: Yes — as long as construction hasn't started or the ARU isn't occupied yet.
Q: Who qualifies as an “eligible tenant” under the grant affordability rules?
A: The grant requires that the ARU be rented at or below 80% of CMHC’s average market rent (as defined by the City).
Q: Do I need a designer or architect to apply for the building permit?
A: According to Waterloo’s ARU guide, your permit application must include site plans and floor plans prepared by an Architect, Professional Engineer, or licensed BCIN Designer — like MW Drafting & Design.
Q: What happens if I don’t finish construction in time?
A: The grant is conditional: once approved, you have 120 days to obtain a building permit and 1 year to complete and occupy the ARU.
Q: Do I need to repay the grant?
A: No repayment is required if you meet the terms (affordable rent for 5 years, occupancy, documentation), but if you default on the agreement, the City may withdraw approval.
Why Choose MW Drafting & Design for Your Waterloo ARU Project
Local Expertise: We serve the Kitchener–Waterloo region and understand local zoning, permit processes, and municipal requirements.
Code Proficiency: Our designs are OBC-compliant and BCIN-certified, minimizing the risk of costly rework.
Grant-Friendly Process: We design with the grant criteria in mind — helping you produce the precise documentation required for the ARU application and final grant disbursement.
Efficiency & Coordination: Through our partnership with Suite Builders, you can combine design and build under one roof, reducing coordination risk and accelerating your timeline.
Transparent Communication: We guide you through every phase — from concept and grant planning, through permit drawings, to construction-ready plans.
Next Steps: How to Get Started
Contact MW Drafting & Design for a free discovery call. We’ll discuss your vision for an ARU (interior or detached), walk you through our service packages, and identify how we can help with your grant application.
Gather property information: Legal description, lot survey, and any existing floor plans or site plans will help us evaluate zoning feasibility.
Develop a preliminary budget and project plan: We'll help you map out key milestones to align with grant timelines (permit application, construction, occupancy).
Submit grant application: Use the City of Waterloo's grant form. We can provide or review preliminary drawings and project plan to strengthen your application.
Move into design & permitting: Once grant approval is conditional, we complete full permit-ready drawings and support you through building permit submission.
Conclusion
The City of Waterloo’s ARU Grant Program is a powerful incentive for homeowners to build legal, affordable additional housing — and MW Drafting & Design is uniquely positioned to help you make the most of it. By combining deep technical expertise, local knowledge, and a grant-aware design process, we take the stress out of applying for funding and navigating permits — so you can focus on building a high-quality, income-producing, or family-friendly ARU.
If you’d like to talk through your project or get a quote, feel free to reach out — we’d be happy to help you turn your ARU vision into reality.