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What is an Additional Dwelling Unit and Why Are They Critical to Affordable Housing In Ontario?

May 15, 20243 min read

Additional Dwelling Units: You may have heard of them before….

If you haven’t, they have become popular among many Ontario real estate investors and even homeowners over the last decade.

When you’re finished reading this, you’ll understand the essentials, including what they are, why they’re important to the future of housing supply in Ontario, and how you can find out if you can build one.

I’ll start with, WHAT are Additional Dwelling Units?

An additional dwelling unit (attached or detached) is a complete residential unit that is secondary or subordinate to the primary unit on a lot/property. They are defined as a self-contained separate unit which must include a separate entrance, full kitchen, full bathroom, living room, dining room and sleeping area(s).

Generally, they are permitted in single detached, semi-detached, row housing or an accessory structure. They are commonly referred to as second units, basement apartments, in-law suites, garden suites, backyard homes, tiny homes, and the list goes on and on…

Accessory structures also have many names, including but not limited to, detached accessory residential units, garden suites, coach houses, backyard homes, carriage homes, and laneway suites.

Now, WHY do they matter in the Province of Ontario?

One of the key considerations of second suites is residential intensification, defined by the Ministry of Municipal Affairs and Housing as

“…the development of a property, site or area at a higher density than currently exists, through development, redevelopment, infill and expansion or conversion of existing buildings.”

Simply put, it allows more people to connect, work and play within the existing urban boundary to meet growing demands. Those demands includes include population growth (e.g., immigration), supply shortages, development constraints, and limited vacant land.

The increase demand for housing has, by and large, sent real estate prices sky rocketing over the last decade. With the increasing disparity between average salaries and the cost of real estate, home ownership is becoming more and more out of reach for many people. Creating affordable sources of housing is therefore needed now more than ever.

Additional Dwelling Units (ADUs) are a desirable form of housing intensification within existing neighbourhoods for many reasons.

1. They provide additional housing without supplanting the characteristics of the neighbourhood. Meaning individuals, couples, or families can have an affordable place to live in a desirable location for work and play. 

2. Existing infrastructure such as public transportation and other city services are more efficiently utilized

3. Increasing the supply of housing in established towns and cities reduces urban sprawl. (Urban sprawl is the expansion of cities and towns often characterized by low-density, single-use, and private transportation.)

And finally, HOW do you know if you can add an Additional Dwelling Unit to your property?

Additional Dwelling Units in the Province of Ontario are guided by the provincial policies within the Planning Act, Building Code Act, and Fire Protection and Prevention Act. It is important to note that there are many other Acts that can impede building on a particular lot. The Green Belt Act, Environmental Protection Act, and Endangered Species Act are some examples.

To be permitted, Additional Dwelling Units must meet certain zoning and by-law provisions, maintenance and/or property standards, building practices in the Ontario Building Code, fire and egress safety with the Ontario Fire Code, and in some instances licensing requirements

It’s important to note that the requirements and approval processes for Additional Dwelling Units may vary from one municipality to the next.

And so, researching each municipality’s mandates either online or by contacting the City’s planning and building department(s) to confirm exact requirements is vital before starting any project.

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When all is said and done, we believe that Additional Dwelling Units are the future of affordable housing here in Ontario.

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