Tiny Homes: Promoting Affordable Housing and Sustainable Neighbourhoods in Guelph: Issue 371

Tiny homes have been gaining popularity as a sustainable and affordable housing option across the world. Tiny homes seem to represent a modern way of living more minimally.

In recent years, the city of Guelph has recognized the potential of tiny homes in addressing the growing demand for affordable housing and increasing urban density. Recognizing this potential, Guelph has begun encouraging the building of these tiny homes by extending zoning regulations, permits, and inspections.

The concept of living in a tiny home as well as the impact of these popping up in neighbourhoods is an interesting trend that is worth taking a look at, as well as the legal qualifications needed to implement one of these tiny homes.

Defining Additional Residential Dwelling Units

In the context of Guelph's zoning regulations, an "Additional Residential Dwelling Unit" refers to a self-contained living space located within the same building or on the same lot as a primary dwelling unit. These units are commonly known as "accessory apartments," "basement apartments," or "in-law suites." When a property contains an additional residential dwelling unit, it falls under the purview of the Additional Residential Dwelling Units Bylaw and must be registered with the city.

Registering an Additional Residential Dwelling Unit

All additional residential dwelling units in Guelph are required to be registered with the city, regardless of whether they were created with or without a building permit. New units need to obtain a building permit, and existing units without proper permits must retroactively apply for one. Lately we’ve witnessed the city being much more “proactive” in chasing down the unregistered units, especially when homes come onto the market with “inlaw suite potential” or “mortgage helper” in the description. There are fees, of course. Building permit and inspection fees are a part of registration, along with a one-time registration fee for these units, which varies based on factors such as permit status and whether the property owner resides in one of the units. The benefit to having a registered unit is that the income from renting can be used for mortgage qualification.

Impact on Property Taxes

It is essential for property owners to be aware that the creation of an additional residential dwelling unit can impact property taxes. For specific inquiries related to property taxes, it is advised to reach out to the Municipal Property Assessment Corporation (MPAC).

Zoning Regulations for Additional Residential Dwelling Units

Guelph's zoning regulations govern various aspects of additional residential dwelling units, including maximum sizes and minimum parking requirements. These units are permitted in specific residential zones such as R.1, R.2, and R.3B. However, they are not allowed in cluster townhouses in R.3A zones or in houses with more than two dwelling units, unless they hold legal non-conforming status.

Interior and Accessory Building Regulations

Additional residential dwelling units located within the main building must meet certain criteria. They cannot exceed 45% of the gross floor area of the building, must have interior access between floors and the host dwelling unit, and can have a maximum of two bedrooms. Additionally, they can occupy the entirety of the basement.

Units situated in separate accessory buildings (like tiny homes) cannot exceed 80 square meters (861 square feet) and cannot occupy more than 30% of the yard, including other accessory structures. The maximum building height is 5 meters, which can be extended to 6.1 meters if located above a detached garage.

Benefits of Tiny Homes in Local Neighbourhoods

The promotion of tiny homes as additional residential dwelling units in Guelph can bring several benefits to local neighbourhoods and the community as a whole.

Increased Affordable Housing: Tiny homes offer an affordable housing option for individuals and families, helping to address the affordability crisis in the city. From a rental perspective, there are clear opportunities for homeowners to help cover the cost of financing a property, as well as deepening the rental pool and choices available to tenants.

Enhanced Urban Density: By utilizing existing properties more efficiently, tiny homes contribute to increased urban density without compromising the character of the neighbourhoods.

Sustainable Living: Tiny homes typically have a smaller environmental footprint due to their reduced size and resource-efficient design.

Multigenerational Living: Additional residential dwelling units allow for multigenerational living arrangements, fostering stronger family bonds and support systems. This creates the opportunity for empty nesters to downsize much easily without having to move to a retirement community or moving farther from family members.

Tiny homes represent a promising solution to the challenges of affordable housing and urban density in Guelph. The multigenerational aspect alone makes them worth pursuing as more and more families find it more economical and mentally beneficial to have parents or grand-parents living on the property together.

While tiny homes may not necessarily be a pure investment play or reason to buy an investment property, they do represent an opportunity to reduce risk for investors and provide a more stable return on investment.

The opportunities for homeowners, investors and renters far outweigh the costs and time requirements.

INTERESTED IN THE OPPORTUNITIES THAT A TINY HOME MIGHT HOLD FOR YOU?

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Talk to our local team and we would be happy to review your property and help you assess whether a tiny home or accessory unit makes sense for you and your family.

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Paul Fitzpatrick

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