City of Kitchener launches funding program for missing middle and affordable housing

Kitchener, ON – The City of Kitchener has launched the Missing Middle and Affordable Housing Community Improvement Plan, which will remove financial barriers and accelerate diverse, affordable housing options. This major new initiative is possible in part through funding from the federal Housing Accelerator Fund.

The plan will enable at least 98 new homes by October 2026 and up to 500 units over the next decade, enabling everything from backyard homes to mid‑rise apartments. The program prioritizes projects near rapid transit and those that address the city’s most urgent housing needs.

“Kitchener is taking significant steps to address the growing need for affordable housing. By reducing financial barriers and encouraging a wider range of housing types, the Missing Middle and Affordable Housing Community Improvement Plan will help us build more of the housing that we need the most,” said Mayor Berry Vrbanovic. “Thanks to the support of the federal government’s Housing Accelerator Fund, we’re building Kitchener together by enabling the development of more diverse housing options that residents of all ages and incomes can afford, now and in the future.” 

There are two grant programs as part of the plan. The Additional Dwelling Unit (ADU) grant will encourage homeowners to add more housing on their properties through backyard homes, duplexes, triplexes or fourplexes. The grant covers 100% of education development charges for the first and second ADU, and 50 per cent to 100 per cent of all development charges for a third ADU, depending on affordability, accessibility or energy efficiency commitments.

The Missing Middle and Affordable Housing Grant supports developers and nonprofits in building projects with a minimum of five units and up to eight storeys that include affordable units. The grant provides up to $25,000 per affordable unit, to a maximum of $500,000 per project. The funding can be used for preconstruction costs such as planning, design, approvals, and development charges. This grant will give priority to larger units and projects serving equity deserving and vulnerable groups.

“This investment allows us to accelerate the creation of new housing, especially the missing middle and affordable units our residents need most,” said Planning & Strategic Initiatives Committee Chair and Ward 6 Councillor Paul Singh. “It means more family sized homes near transit, more options for seniors and young adults and more opportunities for people to live and thrive in Kitchener.”

By reducing financial barriers and encouraging a wider range of housing types, the City of Kitchener is taking a significant step toward expanding housing supply, supporting affordability, and creating complete, connected communities.

Join us for an information webinar where you can learn more about these programs and ask questions of City staff.

ADU Grant information session: 1-2 p.m. on Wednesday, January 28 via Zoom - click here.
Missing Middle Affordable Housing Grant information session: 11 a.m. - 12 p.m. Friday, January 30, via Zoom - click here.

More information, including application guidelines, and information session registration can be found on the project’s web page.

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For more information:

Kayla Snyder
Manager, Corporate Communications
City of Kitchener
media@kitchener.ca