The Town of Gravenhurst has taken a step toward encouraging affordable housing development by approving a new Affordable Housing Rebate Program Policy and allocating up to $20,000 to support the initiative in 2026.
Approved during the municipality’s most recent council meeting, the program is designed to reduce development costs for projects that meet the District of Muskoka’s definition of affordable housing and have already been approved under one of the district’s affordable housing funding programs.
Under the policy, eligible developments can receive rebates on a range of municipal fees and charges, including development charges, building permit fees, planning application fees and entrance permit fees. The goal is to make affordable housing projects more financially viable and encourage additional housing options within the community.
The rebate program stems from recommendations contained in Gravenhurst’s Housing Action Plan, which was developed following the town’s Housing Needs Assessment accepted by council in October 2024. The assessment identified several measures the municipality could pursue to help address local housing shortages and affordability challenges.
Town staff structured the program to align with the District of Muskoka’s existing affordable housing initiatives, allowing applicants who have already qualified through the district to access the municipal rebate with minimal additional paperwork. By relying on the district’s approval process, the town avoids the administrative burden of monitoring rents or sale prices while still providing meaningful support to developers.
The policy also includes safeguards to protect taxpayers. If a project ceases to meet the district’s affordability requirements, the town can recover a portion of the rebate on a declining scale over the five years following approval.
Town staff estimate the initial $20,000 allocation could support approximately two affordable housing developments during the remainder of 2026.
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