Affordable Housing Community Improvement Plan (AHCIP)
Introduction
The Affordable Housing Community Improvement Plan (AHCIP), prepared by the Town of Fort Erie’s Planning, Building and By-law Services Department in February 2025, is a strategic municipal tool designed to incentivize and accelerate the development of affordable housing across the town. A Community Improvement Plan (CIP), authorized under Section 28 of Ontario’s Planning Act, allows municipalities to take targeted actions such as policy changes, public infrastructure investment, and direct financial incentives to spur redevelopment and improvement within a defined project area.
The AHCIP focuses exclusively on affordable housing, aiming to reduce financial barriers for both private and non-profit sectors. It establishes a clear framework of grants, eligibility criteria, and monitoring mechanisms to encourage new construction, redevelopment of underutilized properties, and conversion of non-residential buildings into affordable residential units. The plan aligns with the Town’s 2023-2026 Strategic Plan, which prioritizes diverse, safe, and stable housing for all ages, abilities, and income levels.
Why Fort Erie Needs an Affordable Housing CIP
Fort Erie has identified a critical need for more affordable housing units. According to the Town’s Growth Management & Housing Needs Assessment (2024), population growth (4.5% between 2016 and 2021), an aging demographic (37% of residents over 60), and migration from higher-income areas have increased housing demand and driven up prices. At the same time, 80% of households own their homes, but 83% of the housing stock consists of single-detached houses often too large and expensive for lower-income or smaller households. Over 20% of residents rent, primarily in the secondary market, and there is a notable shortage of non-market (community) housing and seniors’ housing.
The core housing need defined by inadequacy, unaffordability (shelter costs exceeding 30% of pre-tax income), or unsuitability (lack of bedrooms) is prevalent. Municipal Council recognizes that no single tool will solve the housing gap; hence, the AHCIP offers a layered set of financial incentives to complement Niagara Region’s Housing Services and other senior government programs.
Legislative Authority and Policy Alignment
The AHCIP is firmly grounded in provincial and regional policy. Under Section 28 of the Planning Act, the Town may designate a Community Improvement Project Area (passed via By-law 128-2024 on December 16, 2024, covering the entire municipal urban area boundary) and provide grants or loans for environmental assessment, remediation, development, redevelopment, and construction. The Municipal Act (Section 106) exempts these actions from bonus prohibitions, allowing direct financial aid.
Key guiding policies include:
Provincial Planning Statement 2024 (PPS): Expands affordable housing definitions, promotes intensification, and links affordability with climate resilience.
More Homes, More Choice Act (Bill 108, 2019) & More Homes Built Faster Act (Bill 23, 2022): Streamline approvals, reduce development charges for affordable projects, and mandate municipal action.
Niagara Official Plan (2022): Encourages diverse housing stock, local affordability targets, and locating affordable housing near transit and amenities.
Niagara Region Housing and Homelessness Action Plan (HHAP): Provides a 10-year strategic framework (2014-2023, now updating to 2024-2033) focused on housing stability and ending chronic homelessness.
Town of Fort Erie Official Plan (Section 6): Allows designation of CIP areas, public funding for affordable housing, and integration of affordable units within mixed-income neighborhoods.
Secondary Plans: Require that affordable housing be integrated rather than segregated.
Zoning By-law: Permits Additional Dwelling Units (ADUs) with relaxed parking and setback rules, supports mixed-use development, and eases building size restrictions.
Defining Affordable Housing – The “Made in Fort Erie” Threshold
A core innovation of the AHCIP is the “Made in Fort Erie” affordability threshold. Rather than using generic provincial averages, the Town will set its own limits based on local data from the Canada Mortgage and Housing Corporation (CMHC) for Average Market Rent (AMR) and the Canadian Real Estate Association (CREA) for average residential sale price in Southern Ontario (including Niagara).
As of the plan’s development:
Average Market Rent (AMR): $1,067
Average Residential Sale Price: 545,768
For the AHCIP, affordable housing means:
Rental units: At or below the local AMR, excluding regional income security programs.
Ownership units: Purchase price at or below 70% of the average resale price in Fort Erie.
Core housing need: Households spending >30% of pre-tax income on shelter costs, or living in inadequate/suitable housing.
These thresholds will be updated annually as CMHC and CREA release new data. The Town also defines local residents as individuals who have resided in Fort Erie for at least six months or demonstrate significant ties (work, property ownership, local organization participation). Priority will be given to projects that do not impede local residents from renting or purchasing at least 50% of the new units.
Goals and Objectives
Goals of the AHCIP include:
Reduce financial barriers to affordable housing development.
Promote creation of affordable units (especially bachelor and one-bedroom rentals).
Support official plan policies at all government levels.
Encourage residential infill, intensification, and regeneration of aging neighborhoods.
Promote aging in place and housing retention.
Supplement Niagara Region’s housing services.
Foster environmental, social, and financial sustainability.
Objectives :
Provide incentives that relieve cost burdens.
Enable mixed-use, walkable communities.
Increase affordable supply through strategic servicing.
Create units at varying affordability levels and family sizes.
Community Improvement Programs
The AHCIP establishes three core financial incentive programs.
1. Affordable Housing Per Door Grant (APD)
The Per Door Grant is a flexible, per-unit capital grant of up to 500,000 per project. It is intended to offset development costs such as planning, building application fees, and construction. Unlike traditional fee-for-service rebates, this single grant allows the Town to assess each project’s feasibility and provide tailored subsidies.
Eligibility matrix based on three factors:
Level of Affordability (50% weighting): Up to $10,000 per unit if rent is at or below AMR or ownership price at or below 70% of average value.
Percentage of Affordable Units (25% weighting): Up to 2,500; 20% = 5,000.
Years of Affordability Commitment (25% weighting): Up to 2,000; 15-year = 5,000. A registered agreement on title ensures long-term affordability.
Application priority given to: Strategic Growth Areas, purpose-built rentals, higher % of affordable units, deeper affordability levels, commitments >25 years, and projects favoring local residents.
Non-profit/charitable requirements: Minimum 1 new affordable unit; any built form (new construction, addition, conversion, shared living); rental, co-op, ownership, or transitional tenure; minimum 25-year affordability period.
For-profit/market developer requirements: Meet Official Plan targets (20% of new rental housing affordable; 10% of new ownership affordable) or at least 1 unit, whichever is higher; medium/high-density development; same affordability period and tenure rules.
Grant payments: 50% upfront for non-profits after agreement execution; balance upon occupancy permit. For-profits receive 100% upon occupancy permit. Annual reporting required; non-compliance triggers full or partial repayment plus interest.
2. Affordable Housing Study Grant (ASG)
The Study Grant covers 50% of eligible study costs up to $7,500. It supports feasibility studies for:
Including at least 30% affordable rental units in a new development or rehabilitation project.
Incorporating building materials/systems that reduce life-cycle costs.
Funding must be pre-approved. Applicants submit a study plan, cost estimate, and identify qualified professionals. The grant is paid as a lump-sum reimbursement upon completion and submission of an electronic copy of the study, which becomes shared property of the Town and applicant.
3. Additional Dwelling Unit Grant (ADU)
The ADU Grant promotes gentle intensification by supporting interior accessory apartments (e.g., basement units) or exterior detached accessory dwelling units (e.g., garden suites). Grant value: up to 70% of eligible project costs, maximum $20,000.
Eligibility: Property must comply with Official Plan and Zoning By-law for ADUs; owner must have no tax arrears or outstanding work orders. Eligible costs: building materials, labour, HVAC, plumbing required by building permit. Ineligible costs: appliances, decorative amenities, financing, consulting, or permit plan fees.
Application: Must be submitted within 30 days of building permit issuance, on a first-come, first-served basis, subject to annual Council budget. Project timeline: Completion within 12 months of permit issuance. Payment trigger: Final inspection, occupancy permit, paid property taxes, itemized cost forms, and declaration of any other incentives (combined with Town grant cannot exceed total project costs).
Implementation and Monitoring
Administration: The Planning, Building and By-law Services Department (Community Planning Division) manages the AHCIP, in consultation with Finance. Council approves annual budgets; any unused funds carry over to the next year. Programs may be paused if senior government funding fluctuates.
Agreements: Applicants enter into a legal agreement registered on title, specifying the grant amount, affordability period, construction timelines, and default provisions. Upon change of ownership, the new owner must recognize the agreement. Grants may be structured as forgivable loans to secure Town interests.
Monitoring measures :
Number of affordable projects and units created annually.
New residential units via AHCIP.
Vacancy rates, levels of affordability, and AMR vs. income.
Mixed-use/mixed-tenure projects created.
An annual review is presented to Town Council as part of Planning Department statistical reporting. Data is collected at project level and aggregated to inform adjustments to the AHCIP or budget decisions.
Plan revisions: Minor/technical amendments (typos, administrative details) can be made without Council approval. Major/substantive changes (project area modifications, new incentive programs, eligibility changes) require a formal amendment under the Planning Act, including public consultation and Council by-law.
Funding and Financial Sustainability
The AHCIP establishes a reserve fund for financial incentives. Council may allocate specific program budgets. The Per Door Grant cannot exceed total development costs. ADU grants are reduced if other incentives (from government or non-profits) plus the Town’s grant exceed total project costs.
The Town actively seeks partnerships with developers, non-profits, community groups, and other governments to leverage resources. The plan emphasizes that affordable housing creation is a shared responsibility, with the AHCIP acting as a catalyst for private and non-profit investment.
Appendices Summary
Appendix A: Comparative table of 20+ Ontario municipalities (e.g., Barrie, Hamilton, Kitchener, St. Catharines) showing which offer Per Door Grants, ADU grants, Study Grants, Tax Increment Grants, DC Grants, and fee exemptions.
Appendix B: Current CMHC and CREA housing data for Fort Erie (AMR 779,669; 70% threshold $545,768). Key financial details considered: land acquisition, construction, soft costs, financing, operating expenses, income projections.
Appendix C: The Affordable Housing Incentive Matrix used to calculate Per Door Grants – breaking down the 50/25/25 weighting for affordability level, percentage of units, and years of commitment. Also includes the rental affordability commitment matrix.
Conclusion
The Town of Fort Erie’s AHCIP (February 2025) is a comprehensive, data-driven, and legally robust framework to address the growing need for affordable housing. By combining provincial planning authority, local policy alignment, and three practical grant programs (Per Door, Study, and ADU), the Town aims to reduce financial barriers, encourage diverse housing types, and ensure long-term affordability. The “Made in Fort Erie” threshold ensures local relevance, while rigorous monitoring and amendment procedures guarantee adaptability. This plan positions Fort Erie as a proactive municipality leveraging Community Improvement Plan tools to foster inclusive, sustainable, and affordable communities for all residents.
Also Read: 2017 Housing Affordability Response Team (HART) Recommendations