St. Catharines Launches Downtown Forgivable Loan Program to Boost Housing Supply and Accessibility

The City of St. Catharines has officially launched the Downtown Forgivable Loan Program (DFLP), a new financial incentive designed to stimulate residential development in the city’s downtown core, while advancing inclusive and sustainable housing goals.

Under the DFLP, eligible property owners in the Downtown Priority Neighbourhood may receive a one-time, interest-free, forgivable loan of up to $100,000 per property ($50,000 per unit) to offset project costs associated with creating new dwelling units. Projects that include barrier-free units may qualify for an additional top-up of up to $50,000, bringing the maximum loan amount to $150,000 per property.

The program, approved by City Council on Aug. 11, is a new financial incentive in the City’s Community Improvement Plan and supports the conversion of vacant upper-level, rear, or basement spaces in existing mixed-use buildings into residential units, helping to address underutilized spaces and increase housing availability in the downtown area.

“This initiative is a strategic investment in our City’s future,” said Natasha MacDonald, City Planner. “By revitalizing vacant spaces and promoting accessible housing, we’re not only helping bring on new housing units, we’re also creating a more inclusive, vibrant, and resilient downtown.”

The DFLP is part of the City’s broader Housing Accelerator Fund (HAF) action plan, which secured $25.7 million in federal funding through the Canada Mortgage and Housing Corporation (CMHC) in January 2024. The action plan includes seven initiatives aimed at unlocking more than 2,300 housing units over three years, and thousands more over the next decade. These initiatives intend to support a range of housing options throughout the city, including affordable, rental and accessible units. The development of the specialized DFLP loan program is a milestone project under the HAF action plan. For more information about the action plan and its initiatives, please visit here.

Eligible applicants must submit a complete application within 30 days of receiving a building permit. Projects must be completed within 18 months, and loans are gradually forgiven over a five-year compliance period.

For full program guidelines, eligibility criteria, and application forms, visit the City’s Community Improvement Plan webpage at www.stcatharines.ca/CIP