This program grants a property tax credit equal to 50% of the increase in municipal property taxes (the difference between pre-construction and post-construction taxes) for two years after the new rental apartments are occupied. The property owner will be required to enter into an agreement with the City to maintain the units as rentals for at least 15 years after occupancy.
Rental Housing Program
We have introduced the Rental Housing Community Improvement Plan to encourage an increase in the number of purpose-built rental apartments. The plan also aims to accelerate the construction of planned purpose-built rental apartments. It uses property tax incentives to promote development of both market and affordable rental units. The goal is to expand the supply of new rental housing to help address the ongoing housing affordability crisis and low rental vacancy rates. We can achieve this by reducing financial barriers for new rental apartment buildings with seven or more units.
Incentives
There are three different financial incentives that developers can apply for. These incentives are not mutually exclusive. Both the Vacant Land Tax Program and the Affordable Rental Incentive can be combined with the Tax Increment Equivalent Grant Program.
Tax Increment Equivalent Grant Program
This program grants a property tax credit covering 100 per cent of the municipal property tax for the vacant property during the construction of an eligible rental apartment building, for up to two years. The redevelopment must eliminate existing uses during construction.
This incentive only applies to affordable rental units. It is intended to encourage the construction of rental units that are affordable for low to moderate income households.
This incentive can double the Tax Increment Equivalent Grant Program benefits. Receiving program benefits requires a 15-year commitment to maintaining the units at affordable rents.
Eligibility
You can apply at any point in the development process, provided you meet the eligibility requirements. To apply for this program:
- Development must be within the urban boundary, create a new rental apartment building of seven or more rental units, and result in an increase in property taxes.
- At the time of application, property taxes must be in good standing.
- The property must not be exempt from paying property taxes.
- You must be eligible for and obtain full building permits between May 31, 2024 and December 31, 2026.
- You must be eligible for and obtain occupancy permits and address all building deficiencies within three years of the receipt of full building permit.
- The property cannot be subject to fire or building code orders.
The Director of Planning and Chief Financial Officer will confirm eligibility. Successful applicants will need to enter into an agreement with the City, to be registered on their property.
Contact
Planning Services
1211 John Counter Blvd.
Kingston, ON K7L 4X7
planning@cityofkingston.ca
Phone: 613-546-4291 ext. 3180
The City of Kingston acknowledges that we are on the traditional homeland of the Anishinaabe, Haudenosaunee and the Huron-Wendat, and thanks these nations for their care and stewardship over this shared land.
Today, the City is committed to working with Indigenous peoples and all residents to pursue a united path of reconciliation.
Learn more about the City's reconciliation initiatives.
