Housing

• More homes can have extra units like basement apartments 

Why it matters

The demand for all housing types, including affordable housing, will grow exponentially as the population and demographic of our community changes. As more people move here, we need different types of homes people can afford to support livability in our community for generations to come.  

 

The Housing Needs Assessment explains what types of homes we need, how big they should be, and what they should cost. 

The Town’s Commitment

Caledon wants to grow while keeping its rural charm.

We are: 

• Building all kinds of homes—like townhouses and apartments 

• Making it easier to build homes 

• Engaging with residents about growth plans 

To do this, we request the Province: 

• Provide more funding for roads and other services in new areas 

• Offer support for Caledon's planning timelines 

• To consider a stop to Ministerial Zoning Orders (MZOs) that compromise Caledon’s commitment to enabling housing choice. To limit early appeals that don’t match the Town’s plans.

View a copy of Caledon’s Housing Pledge . 

The Housing Accelerator Fund

We’re also working with the Government of Canada through the Housing Accelerator Fund (HAF) program . Administered by the Canada Mortgage and Housing Corporation (CMHC), this federal fund is aimed at boosting housing supply, while supporting affordable, eco-friendly and diverse neighbourhoods. 

Caledon’s Housing Action Plan

We  received  nearly $14 million  from the federal Housing Accelerator Fund (HAF) to  help build 2,628 more homes by 2028 .  Funding is provided  in  four annual installments  and  conditional  on Caledon  delivering  eight initiatives   and realizing  it s   housing growth targe t  of  2,628 homes by 2027.  

 

1. New and Enhanced Processes and Systems   (COMPLETE)  
We’ve  modernized  our  development application process  by expanding  staff  capacity, upgrad ed   workflow  software,  introduc ed   electronic plan review s , an  online pre-development guide portal , and  a public development dashboard .   

 

2. Incentive Program for Multiplexes and ARUs  (COMPLETE)
We’ve  designed  and received Council approval for the  Gentle Density Community Improvement Plan (CIP) , offering four grant streams to support ARU and multiplex construction Town-wide. The CIP is open  for  applications.   

 

3. Unlocking Housing in Strategic Growth Areas  (IN PROGRESS)  
Council approved 12 pre-zoning by - laws across approximately 18,000 hectares, accelerating development timelines by one to two years.  A Secondary Plan Strategy and Guide  was  finalized  for new urban growth areas.  Public engagement  on a  draft site  alteration  by - law   is  in progress .   

 

4. Missing Middle Housing Program for Urban Areas  ( COMPLETE)  
We’ ve  updated the Zoning  By - law  to allow four units as-of-right Town-wide,  established  an ARU registration program, completed a parking pilot study in Southfields  Village , released  pre-approved ARU plans , and ran a public awareness campaign.   

 

5. Expansion of Housing Options in Rural Areas  (COMPLETE)  
Zoning was updated to  permit  secondary units and fourplexes on rural lots.  Pre-approved plans   rural  properties are now available.   We  continue to support legislative changes that enable gentle housing additions within existing dwellings, while upholding the protection of Caledon’s natural  heritage.  

 

6. Vacant Land Program for Affordable and Attainable Housing  (IN PROGRESS)  
We’ve  completed a GIS inventory of publicly owned lands, developed pre-approved designs for 20 pilot sites, and  established  a land acquisition and disposal policy. A  site was put to  market  for  housing, but  no proposals  were  received; the Town is reviewing  next  steps  to realize  housing on  underutilized public  lands.    

 

7. Incentive Program for Rental Housing on Surplus Town-owned Lands  (COMPLETE)  
We’ve   designed and received Council approval for an incentive program offering  forgivable loans as  part of the  Gentle Density Community Improvement Plan (CIP) ,  and  are  now open for applications.   

 

8. Implementing the Pilot Community Planning Permit System (CPPS)  (COMPLETE)  
The CPPS By - law and Official Plan Amendment were drafted and adopted by Council for the Bolton Secondary Plan area . The by-law  combin es  zoning, minor variance, and site plan approvals into  a single   more  efficient   approval   process . The  b y - law comes into  effect  when the Bolton Secondary Plan takes effect.   

 

Secondary Planning in Caledon’s 2051 New Urban Area

The Town has prepared a guide for Secondary Planning to help shape the future growth of our new urban areas up to 2051.

It shows what types of homes can be built and where, and includes rules for: 

• Housing types 

• Parks, roads, and services 

• Climate and environment 

• Community design 

The guide outlines: 

• What a Secondary Plan is: A detailed land use plan built under the Town’s Official Plan. 

• The Planning Process: How landowners, developers, Indigenous Communities and the public are engaged through each planning phase. 

• Key Requirements: What studies and documents are needed to support new communities. 

• Focus Areas: Protecting the natural environment, adapting to climate change, ensuring a variety of housing options, creating vibrant, connected and sustainable communities. 

To learn more, view the full Guide for Secondary Planning in the new 2051 Urban Area .  

Public Meetings

• September 2, 2025 - Notice of Public Meeting: Gentle Density Community Improvement Plan (CIP) 
  • Town of Caledon CIP Draft 
     
• July 15, 2025 - Notice of Application and Public Meeting: POPA 2025-0013, RZ 2025-0015  
  • Draft Zoning By-law Amendment (RZ 2025-0015) 
  • Draft Official Plan Amendments (POPA 2025-0013) 

Development Application Dashboard

The Town has created a dashboard which provides a single view of development activity, housing updates, and approved application. 

 

It can be accessed by clicking here: Development Application Dashboard

Pre-Approved Detached Additional Residential Unit ("ARU", "Garden Suite") Drawings

The Town of Caledon is pleased to offer pre-approved building plans for one-bedroom and studio ARU's, making it easier for homeowners to build a detached ARU on their property.

Detached ARUs are self-contained units that typically cooking, living, sleeping and washroom facilities. If you're looking to build a detached ARU on your property, you can choose to build one of the Town's pre-approved models and use those plans for your building project.

A Schedule 1 form along with a site plan are still required along with your building permit application. For more information on applying for a building permit, please visit our Building Services page here . 

 

Pre-approved Plans 

• One-Bedroom Detached ARU 
• Studio Detached ARU 
  
   

Site Plan 

In addition to the pre-approved plans, we need a detailed site plan to ensure your detached ARU meets the zoning requirements. For this, you may find your zoning requirements here or connect with Zoning Staff at zoning@caledon.ca  for further guidance. 

Your site plan should clearly indicate the following:

• All property lines, existing structures, proposed structures  with overall dimensions and include setback dimensions
• Dimensioned parking areas, driveways, hard and soft landscapes
• Summary of permitted and proposed zoning provisions to include lot area, building area (GFA) and lot coverage.
  
   

Schedule 1: Designer Form 

When using the pre-approved drawings as a homeowner , you are exempt by the registration and qualifications requirements of the Building Code. This declaration is needed on the Schedule 1  when applying for a building permit. For questions, please connect with our Building Services team at 905-584-2272 x 2233 or buildingpermits@caledon.ca .  

 

More information, including an ARU guide and updated zoning requirements will be coming in October 2025.

Contact Us

For more information on housing in Caledon, contact housing@caledon.ca . 

Community Planning Permit System (CPPS)

We are piloting a Community Planning Permit System (CPPS) within the potential Bolton South Major Transit Station Area (MTSA). The CPPS will help streamline the development applications in the area and support the implementation of the Bolton Secondary Plan, which is being developed concurrently by the Town . The CPPS is also part of the Town’s initiatives under the Housing Accelerator Fund .    

What is CPPS?

Community Planning Permit System (CPPS) is a land use planning tool that streamlines development approvals by combining three separate approval processes: Z oning by-law amendments, M inor variances and S ite plan applications into a single permit application and review process.   

 

CPPS will be implemented through a Community Planning Permit (CPP) By-law. Once approved, it replaces the Town’s Zoning By-law as it applies to the area. 

Click here for the draft CPP By-law .   

Engagement Opportunities

• Public engagement sessions for the CPP By-law have been completed. The bylaw is approved and will come into force once the Bolton Secondary Plan is in effect. 

Learn More

• Download the CPPS Education Booklet    

• View the Proposed CPPS area Map  

 

Questions? Contact Caledon’s Planning Department at:
 

Taral Shukla  

Senior Planner, Policy  

Planning and Development  

Phone: 905-584-2272 ext. 4037  

Email: taral.shukla@caledon.ca    

Building an Additional Residential Unit (ARU)

An ARU provides  homeowners with   flexible option s  to create independent living spaces on their property.   It is a separate living space that is located on the same property as a primary home.  These units are fully livable as they are equipped with their own kitchen, bathroom, and sleeping area.

Types of ARUs

There are three main types of ARUs you can build on your property:  

• Internal ARUs –  located  within the main home ( e.g.  basement or attic)  

• Attached ARUs – built as an addition to the main house ( e.g.  side or rear addition)  

• Detached ARUs – stand-alone units  located  on any yard, except a front yard ( e.g.  backyard unit)  

 

Each type offers different advantages depending on the size of your lot,  budget,  and needs.    

Why Build an ARU?

Building  an ARU has several benefits for homeowners and residents of Caledon:   

 

• They  provide a flexible housing option for older adults  that want to remain in their community while downsizing to a smaller space   
   

• ARUs support multi-generational living by offering separate yet connected living arrangements.   
   

• Renting   out   an ARU can generate  additional  income to help with mortgage payments or maintenance costs of the primary house.   
   

• They can increase the value of your home by creating  additional  living  spaces  and rental opportunities   
   

• ARUs make existing land  use  and services  more efficient  through gentle growth  

 

ARUs help expand Caledon’s housing supply in a way that addresses the needs of current and future residents.   

Zoning Regulations

The Town of Caledon’s  Zoning By-law 2006-50  regulates land use  and sets certain rules such as (but not limited to)  lot sizes and dimensions,  building / structure location on a property, building massing and heights, setbacks  a n d parking  requirements .  The Zoning By-law also regulates specific uses, such as Additional Residential Units (ARUs). These rules vary depending on the parent zon e  of the property ( i.e.  R1, A1, etc.) .     

 

Specific provisions for ARUs  are in Section 4 of the Zoning By-law. These  include:  

• If ARUs are allowed on the property (whether in the dwelling or elsewhere)  

• The number of ARUs allowed on the property  

• How many parking spaces you need for each ARU  and how  they’re  calculated  

• Where an ARU can be  located  on the property  

• What the maximum height and size of a detached ARU can be  

There are areas in Caledon where ARUs are  further  restricted or outright prohibited.  It’s  important to understand your zoning  permissions  prior to making significant investments in your ARU.  Any ARU must  comply with   our   zoning bylaw  to operate legally and obtain a building permit.  

 

If you n eed help finding your  property’s   zone , you can u se the maps on the Town's Zoning page,   or contact staff during regular business hours (contact information below).  If you  can’t  meet the zoning requirements, please contact the planning team to see  if there are opportunities to get relief from the requirements.   

Preparing for Your Project

Costs to Consider  

When building an ARU on your property, it is important to st ar t with a clear and detailed budget. Understanding the full range of costs – from design and permitting to construction and utilities – will help you create a financing plan. Expenses will vary depending on the type of ARU project.   

• Initial Design and Construction Costs  

• Materials (wood, shingles, pipes, electrical panel)  

• Labor  

• Equipment  

• Consultant fees (designer /architect , surveyor, heritage consultant , etc. )  

• Financing  

• Insurance  

• Utility connection fees  (where applicable)   
   

• Costs to Consider for Applications and Permits  

• Building permits  

• New driveway or driveway widening permit  

• Committee of Adjustment fees (if your proposal requires relief from zoning)  
  
   

Draft Your Plans     

Typically,  you’ll  work with an architect or BCIN designer to prepare your project plans (layout, elevations, construction details, etc.).    
  
To save on this cost  for detached ARUs , t he Town of Caledon is pleased to offer pre-approved building plans for one-bedroom and studio ARU's  for residents to use. This reduces potential design  costs  and pre-approved plans  generally will  reduce the time  required  to process and issue a Building Permit.  

A Schedule 1 form along with a site plan  are  still  required  along with your building permit application. For more information on applying for a building permit, please visit our Building Services page  here .  

Pre-approved Plans  

• One-Bedroom Detached ARU  

• Studio Detached ARU  

 

Site Plan   

In addition to the pre-approved plans, we need a detailed site plan to ensure your detached ARU meets the zoning requirements. For this, you may find your zoning requirements  here  or  connect with  Zoning Staff at  zoning@caledon.ca  for further guidance.   

Your site plan should clearly  indicate  the following:  

• All property lines, existing structures, proposed  structures with  overall dimensions and include setback dimensions  

• Dimensioned parking areas, driveways, hard and soft landscapes  

• Summary of permitted and proposed zoning provisions to include lot area, building area (GFA) and lot coverage.  

 

Schedule 1: Designer Form   

When using the pre-approved drawings  as a homeowner , you are exempt  by  the registration and qualifications requirements of the Building Code. This declaration is needed on the  Schedule 1  when applying for a building permit. For questions, please  connect with  our Building Services team at 905-584-2272 x 2233 or  buildingpermits@caledon.ca .  

 

Registering Your ARU   

H omeowners who have an ARU on their property (whether rented to a tenant or not)  will  be  required  to be registered  with the Town . This applies to any ARU  located  within the Town of Caledon, whether new or existing.  

 

Further  information will be available soon.   

 

Occupying   the  ARU   

Once final occupancy has been issued and the ARU is licensed, you may occupy/ rent out  your ARU. There are fines and other p otential risks associated with unlicensed or otherwise work done without a building permit.   

Need Help?

• Planning &  Zoning Questions: Contact Planning Services at  planning@caledon.ca  or  905-584-2272 x. 7338   

• Building Code & Permits: Contact Building Services at  building@caledon.ca  or  905-584-2272 x. 2233   

What is the Gentle Density Community  Improvement  Plan (CIP) ?   

The  CIP  is a tool designed  to  address   the  housing needs  in Caledon  by  increasing  the supply and variety of  housing .    

The Gentle Density CIP incentives encourage private investment and  help s  Caledon meet its housing targets by offering diversified housing options while also preserving the community character that residents value.