Affordable Housing Developers’ Handbook
Introduction
The City of Richmond Hill’s Affordable Housing Developers’ Handbook is an essential annual publication designed to help landowners, developers, and nonprofit organizations successfully create affordable housing within the city. As part of Richmond Hill’s broader Affordable Housing Strategy, this handbook brings together key tools, incentives, and regulatory considerations to enable more affordable housing projects and support the development of balanced, healthy, and sustainable communities.
Richmond Hill does not directly build or manage housing. Instead, the Region of York serves as the provincially designated Housing Service Manager, responsible for planning, funding, and managing community housing programs, including emergency and transitional housing. The Region also operates Housing York Inc. (HYI), a nonprofit housing agency, and partners with other nonprofit organizations to deliver a full spectrum of housing options.
To further assist developers, Richmond Hill has launched an Affordable Housing Concierge Pilot Program, offering dedicated staff to answer questions and guide proponents through the development process. Questions can be directed to [email protected].
Defining Affordable Housing in Richmond Hill
The handbook makes clear that affordable housing is not a one-size-fits-all concept. Richmond Hill’s overarching goal is to increase the supply of housing available to low and moderate-income households, specifically, households with incomes up to the 60th income percentile of all households in the city. However, because different programs and levels of government use slightly different calculation methods, affordable housing price thresholds can vary.
Affordable Ownership Housing
For 2025–2026, using the Provincial definition, the affordable ownership threshold in Richmond Hill is $462,000 or less. This applies to all ownership housing types, including condominiums, townhouses, and single-family homes, regardless of unit size.
The threshold is defined as the lesser of:
Housing where annual accommodation costs (purchase price–based) do not exceed 30% of gross annual household income for low and moderate income households; or
Housing where the purchase price is at least 10% below the average purchase price of a resale unit in the city.
This dual definition ensures that affordable ownership remains tied both to household income and to local market conditions.
Affordable Rental Housing
For rental housing in 2025–2026, the monthly affordable rent thresholds by bedroom type are:
Bachelor: $1,199
1 Bedroom: $1,534
2 Bedroom: $1,931
3 Bedroom+: $2,200
A rental unit is considered affordable when the rent is at or below the lesser of:
Income-based rent: 30% of gross annual household income for a household at the 60th percentile of renter household income in Richmond Hill.
Market-based rent: The average market rent (AMR) for the same unit type in the city.
These definitions are sourced from the Province of Ontario Ministry of Municipal Affairs and Housing (2025) and are critical for developers seeking to align projects with affordable housing eligibility for incentive programs.
Primary Rental Market Statistics
The handbook highlights the importance of Canada Mortgage and Housing Corporation (CMHC) data. CMHC conducts an annual Rental Market Survey each October, covering urban areas with populations of 10,000 or more. The survey focuses on private rental buildings with at least three units that have been on the market for a minimum of three months (excluding social and affordable housing). Data on rents, availability, turnover, and vacancy rates are collected via telephone interviews and site visits.
Developers are encouraged to use CMHC’s Housing Market Information Portal for the latest market data, as this directly influences the market-based rent component of the affordable rental definition.
Affordable Housing Incentive Programs and Supports
The handbook dedicates significant space to summarizing financial incentives from Richmond Hill and senior levels of government. These are among the most high-value keywords for developers searching for funding opportunities.
Development Charge Incentives
Development Charges (DCs) are fees collected by municipalities to help pay for growth-related infrastructure such as roads, water systems, and parks. Under new rules in the Development Charges Act (effective June 1, 2024), affordable and attainable housing units are now exempt from DCs.
Key eligibility requirements:
Housing must meet specific affordability criteria set out in the Affordable Residential Units for the Purposes of the Development Charges Act, 1997 Bulletin.
Units must be maintained at an affordable rate for a minimum of 25 years.
Richmond Hill’s DC exemption thresholds for 2025–2026 align with the provincial definitions:
Affordable rental rates: Bachelor 1,534; 2BR 2,200
Affordable ownership rate: $462,000 (all unit sizes)
Development Charge Payment Deferral – Affordable Purpose-Built Rental Projects
The Region of York has a DC Deferral for Affordable Rental Buildings Policy, which incentivizes purpose-built rental housing by deferring DC payments for 5 to 20 years, depending on specific criteria. Richmond Hill Council approved a matching deferral in March 2025.
Key requirements:
Minimum project size: four storeys
Average rents by bedroom type must be ≤ 175% of Average Market Rent (AMR)
Project must be located in the Urban Area, Towns and Villages, Regional Centres and Corridors, or Major Transit Station Areas (MTSA)
Project must operate as an affordable rental property for at least 20 years
For this deferral program, the 175% AMR thresholds for 2025–2026 are:
Bachelor: $2,098
1 Bedroom: $2,685
2 Bedroom: $3,379
3 Bedroom+: $3,908
This program is specifically for affordable purpose-built rental projects and offers significant cash-flow relief during construction and initial operation.
Property Tax Incentives
York Region sets property tax rates for regional services like transit and policing, collected by local municipalities. In 2024, the Region introduced a new tax subclass: New Multi-Residential.
Starting in 2025, properties in this category (typically new apartment buildings built specifically as rentals) receive a 35% discount on the Regional and City portion of their property taxes. The classification is done by the Municipal Property Assessment Corporation (MPAC).
Eligibility details:
Multi-residential: One property under the same ownership with 7 or more self-contained units (each with separate entrance, kitchen, bathroom). Any built form ground-related row houses, mid-rise, high-rise is eligible.
New: Final building permit issued on or after May 23, 2024 (the date York Region adopted the subclass).
Once MPAC classifies a property in the New Multi-Residential (Municipal reduction) subclass, it automatically receives the 35% property tax discount. This incentive is not tied to affordability thresholds but is designed to encourage new rental housing supply.
Richmond Hill’s Community Improvement Plan (CIP) for Affordable Housing and Sustainable Design
Approved by Richmond Hill Council in 2024, this Community Improvement Plan supports sustainably built, affordable rental housing projects by providing financial incentives that can be stacked with other programs. The CIP offers four streams:
Per Affordable Unit Grant – up to $150,000 per affordable unit
Competitive Capital Funding Grant
Tax Increment Equivalent Grant (TIEG)
Public Lands support
Funding is released through intake windows. Developers are urged to check the CIP Webpage or contact the Affordable Housing Coordination team for current eligibility, timelines, and available incentives.
Additional Funding Program Resources
The handbook lists numerous federal, provincial, regional, and miscellaneous funding resources to support affordable housing projects.
Federal Resources
CMHC Funding and Financing Programs
CMHC Expert Community on Housing (ECoH)
Build Canada Homes
Federation of Canadian Municipalities (FCM) Green Municipal Fund Sustainable Affordable Housing Programs
Provincial Resources
Ontario Trillium Foundation grants and resource supports
Province of Ontario Housing Innovation Guides
Ontario Non-Profit Housing Association (ONPHA) – funding programs tracker
Regional Resources
Region of York Community Housing Supply Grant
Region of York Housing Affordability Resources
Miscellaneous
Enbridge Gas Incentive Programs
The Atmospheric Fund (TAF) funding programs
These resources are critical for developers looking to assemble layered financing for affordable rental and affordable ownership projects.
Partnerships between For-profit and Not-for-profit Housing Groups
One of the most strategic sections of the handbook focuses on partnerships between private developers and nonprofit housing groups.
Nonprofit housing providers bring significant expertise in building and managing affordable housing, applying for government funding, and ensuring long-term affordability often in perpetuity. While some nonprofits have the financial capacity to develop on their own, many seek private sector partnerships to access capital, land, real estate assets, and operational expertise.
For socially motivated private developers, partnering with a nonprofit can strengthen a project’s ability to compete for limited government housing funds. As competition increases, such partnerships become a powerful strategy.
Potential benefits of for-profit/nonprofit partnerships include:
Sharing capital and lands
Pooling real estate assets
Combining expertise in operation and management of housing portfolios
Enhancing eligibility for CIP grants, DC deferrals, and property tax discounts
The handbook explicitly invites developers interested in connecting with a nonprofit housing group in Richmond Hill or York Region to contact the Affordable Housing Coordination Team at [email protected].
Practical Takeaways for Developers
This handbook serves as a one-stop reference for anyone aiming to build affordable housing in Richmond Hill. Key actionable insights include:
Know the numbers: For 2025–2026, affordable ownership is 1,199 (bachelor) to $2,200 (3BR+).
Leverage DC exemptions: Full exemption from development charges if affordability is maintained for 25 years.
Use DC deferrals: For purpose-built rental projects of 4+ storeys with rents ≤175% AMR, defer DCs for 5–20 years.
Claim property tax discounts: New multi-residential rental buildings with 7+ units get 35% off Regional and City property taxes.
Apply for CIP grants: Up to $150,000 per affordable unit plus capital grants, TIEG, and public land opportunities.
Stack funding: Combine federal (CMHC, FCM), provincial (Ontario Trillium, ONPHA), regional (York Region grants), and utility incentives (Enbridge, TAF).
Partner with nonprofits: Strengthen funding applications and ensure long-term affordability.
Conclusion: A Collaborative Path Forward
The City of Richmond Hill’s Affordable Housing Developers’ Handbook is more than a reference document it is a call to action for the development industry, nonprofit organizations, and all levels of government to work together. By clearly defining affordable ownership and affordable rental thresholds, detailing development charge incentives, property tax incentives, the CIP for Affordable Housing and Sustainable Design, and encouraging for-profit/nonprofit partnerships, Richmond Hill provides a practical roadmap for increasing the supply of affordable housing.
Developers are strongly encouraged to use the Affordable Housing Concierge Pilot Program and contact [email protected] for personalized guidance. With annual updates, the handbook ensures that stakeholders always have access to current thresholds and programs, making Richmond Hill a leader in facilitating affordable housing through smart policy and genuine collaboration.
Also Read: 2017 Housing Affordability Response Team (HART) Recommendations