Today, the City of Brampton announced a new Development Charges (DC) Incentive Program designed to encourage the construction of purpose-built rental housing and address the city’s growing housing needs.
“For too long, Brampton has relied on Additional Rental Units (ARUs) to meet our housing needs, with 60% of new units built as ARUs. This overreliance is unsustainable, straining city services and impacting neighbourhoods. That’s why Councillor Keenan and I brought forward a motion to incentivize purpose-built rental housing and call on the Province to reverse its aggressive ARU legislation.”
– Rowena Santos, Regional Councillor, Wards 1 and 5; Chair, Community Services , City of Brampton
Brampton is one of the fastest-growing cities in Canada but like many municipalities across the country, the demand for safe and affordable rental housing continues to outstrip supply. Many residents are being pushed into the secondary rental market, particularly through Additional Residential Units (ARUs), which are less stable and secure rental options compared to primary, purpose-built rentals.
The City’s new incentive program takes immediate effect and offers some of the most significant rental housing incentives in Ontario. DC reductions will be tiered, ranging from 50% to 100% based on unit size, with greater reductions for larger family-sized units and projects with a mix of uses to support the development of complete communities.
Purpose-built rentals (PBRs) are buildings constructed from the ground up specifically for long-term rental, rather than for sale as condominiums. This program is designed to create family-friendly rentals, support complete communities and attract new investment while ensuring rental housing supply grows in a safe, sustainable way, supported by city infrastructure.
In addition, Council has passed a motion calling on the Province of Ontario to reconsider its one-size-fits-all ARU legislation, which has resulted in more than 26,000 registered ARUs in Brampton, now over 60% of all new residential units in 2025. The motion urges the Province to allow Brampton to pause new ARUs in concentrated areas, so the City can address property standards and safety issues, while incentivizing better, safer alternatives through purpose-built rentals.
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“Brampton is taking a bold step to address one of the biggest challenges facing our residents: the shortage of safe and affordable rental housing. This new incentive program will attract investment, support family-friendly rentals and help us build the strong, vibrant communities our residents deserve.”
– Patrick Brown, Mayor, City of Brampton
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