Gravenhurst council approves new affordable housing rebate program

The plan waives fees for approx. 2 new projects

Gravenhurst Council approved a new Affordable Housing Rebate Program Policy at its June 16, 2026, meeting.

The staff report noted that the Town will allocate funding annually to support the program. For 2026, administration recommended setting aside $20,000, an amount based on estimated fees and charges that could be waived for approximately two potential residential developments.

Staff indicated the current operating budget can accommodate the funding through favourable variances in other areas.

The program is intended to encourage the development of affordable housing in the Town by reducing municipal fees and charges for qualifying projects.

The policy supports the Town's Housing Action Plan and is designed to complement affordable housing initiatives already offered through the District of Muskoka.

Under the program, housing developments that meet the District's definition of affordable housing and have been approved through District affordability programs may qualify for rebates on a range of municipal fees and charges.

Eligible rebates could include development charges, building permit fees, entrance permit fees and planning fees.

Staff said the program was developed by an administrative working group based on action items identified in the Town's Housing Action Plan.

Manager of Revenue and Deputy Treasurer, Rob Rosilius, said, “We felt $20,000 for 2026 is a good number to start from.” He added that if staff return to Council requesting more money “that means the program is working.”

The policy is intended to be simple for applicants to access while reducing administrative requirements for the Town. Developers approved through the District's affordability programs would be eligible to apply for the municipal rebate, providing financial savings at the outset of a project and helping reduce overall development costs.

To protect the Town's investment, the policy includes a mechanism allowing Gravenhurst to recover a portion of the rebate if a development no longer meets the District's affordable housing criteria. The Town would be able to recoup fees and charges on a proportional basis during the five years following approval of the rebate.

Mayor, Heidi Lorenz, expressed support for the program. She said, “This is a step in the right direction.”

Staff indicated that they will promote the program through the Town's website and social media channels.