Apply for a Tax Increment Equivalent Grant

The Affordable Housing Tax Increment Equivalent Grant (TIEG) program incentivizes the development of affordable rental units. It provides a yearly fixed grant for 20 years. The grant helps offset the revenue loss housing providers experience when incorporating affordable units in their developments.

Before you begin

Please review all the information tabs carefully before you submit your application.

The TIEG program provides fixed annual grants between $6,000 and $8,000 per affordable unit per year, for 20 years. The grant amount per unit is calculated based on the level of affordability provided. For the program, rental housing that is rented at or below Average Market Rent (AMR) will be considered affordable. The City uses the AMR as defined by the Canada Mortgage and Housing Corporation (CMHC).

Grant amount per affordable unit
Level of Affordability (AMR) Grant amount per affordable unit per year Total grant per affordable unit (20 years)
91 per cent to 100 per cent $6,000 $120,000
81 per cent to 90 per cent $7,000 $140,000
71 per cent to 80 per cent $8,000 $160,000
CMHC Average Market Rents
Unit type Apartment Townhouse
Studio $1,173 N/A
One bedroom $1,411 $1,084
Two bedroom $1,698 $1,598
Three or more bedrooms $2,119 $1,754
Source: 2023 reported AMR from CMHC Rental Market Data Report (Ottawa)

 

Successful applicants must enter into an agreement with the City which will outline the conditions for receipt of the grant, including that the affordable rental units remain affordable, in accordance with the definition set out in this plan, for at least 20 years from occupancy. If the units are no longer deemed to be affordable, the grants, plus interest, will become payable to the City in full.

Eligibility

Development projects for the Tax Increment Equivalent Grant program must:

  • be located within the City of Ottawa
  • have a minimum of five affordable rental units
  • provide a minimum of 15 per cent of the total number of units in the development as affordable and provide a minimum of 15 per cent of each unit type in the development as affordable
  • be rented at or below the city-wide average market rent for the entire housing stock based on the building form and unit type, as defined by the Canada Mortgage and Housing Corporation
  • provide affordable rental units for at least 20 years
  • have submitted a formal Site Plan Control application, or Building Permit application for projects not requiring Site Plan Control
  • not be in receipt of an Occupancy Permit

What you need

The following information will be needed for your application:

  • Owner/Applicant information including address(es) and contact information
  • Property information including address(es) and existing uses and buildings on the site
  • Project information including the proposed development and a breakdown of unit types, number of affordable units, and level of affordability (rent)
  • Financial information including an estimated assessment increase, and any other incentives and funding sources being applied for

You will need to attach the following documents to your application:

  • A payment receipt for a Site Plan Control application, if applicable, or a payment receipt for a Building Permit application
  • An Authorization by the Owner form, for Third Parties applying on behalf of the registered owner
  • A copy of the Parcel Register (Abbreviated) for the Property Identifier (Parcel Abstract/PIN)
  • A copy of the latest professionally prepared drawing(s) for the proposed development, including site plan and floor plans
  • A copy of the most recent final Property Tax bill or a copy of your Property Tax Account details
  • A report, completed by a third-party appraiser, showing that the proposed work is expected to result in an increase in the assessed value of the property
  • Any City agreements or documentation where the proposed affordable units in this application have already been incentivized (e.g., Site Plan Agreement, Community Benefit Agreement, Section 37 Agreement, etc.)

Apply

Complete the Affordable housing Tax Increment Equivalent Grant application.

This online form does not support saving and must be completed in a single session. Before beginning, please refer to the What You Need tab for information and attachments you will need to have ready.

What's next

Applications and supporting documentation are reviewed by staff to ensure they are complete and meet eligibility requirements. If the project is not eligible or if there is missing information, staff will inform the applicant in writing. In managing the program, staff may request clarification or additional supporting documentation. Staff may also perform site visits and inspections as needed.

You will be notified when your application is deemed complete and is being recommended for approval. 

The Director of Housing Solutions and Investment Services can approve applications with a total grant value of up to $2 million. If the total grant value is more than $2 million, staff’s recommendation will be forwarded to City Council for review. If an application is denied by the Director, the applicant may appeal to City Council. If the grant application is approved, please consult grant payment and implementation.

Contact

For more information or to request a mailed copy of the application form, email us at affordablehousingCIP@ottawa.ca.