Caledon opens applications for Gentle Density Community Improvement Plan to expand housing

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Caledon, ON (February 2, 2026) – The Town of Caledon is now accepting applications for incentives available through the Gentle Density Community Improvement Plan (CIP), a program designed to increase housing supply and support a broader range of housing options while maintaining Caledon’s unique character and charm.  

Funded through the Government of Canada’s Housing Accelerator Fund, the Gentle Density CIP provides financial assistance to homeowners, builders and developers to encourage small-scale, community-oriented residential development, including additional residential units and multiplex housing. 

“Gentle density is a practical way to increase housing options without changing the character of our community,” said Mayor Annette Groves. “This program helps homeowners and builders add additional units to their existing properties which helps meet the growing demand for affordable housing.”

Grants & Incentives 

The Gentle Density CIP offers multiple funding streams to help reduce financial barriers and accelerate housing projects, including: 

  • Servicing Review Grant – up to $35,000 to support servicing assessments for rural lots developing additional residential units or multiplexes 

  • Multiplex Development Grant – up to $50,000 to convert existing homes or construct new multi-unit residential buildings 

  • Subdivision Grant – up to $15,000 per unit for new developments that include multiplexes or legal secondary suites 

  • Affordable Unit Grant – up to $30,000 to assist homeowners in creating or legalizing additional residential units with a commitment to affordable rental rates 

“Through this program, we’re removing upfront costs barriers to move projects forward and accelerate the delivery of affordable housing,” said Nathan Hyde, Chief Administrative Officer. “This targeted approach will help us meet growth targets sustainably while ensuring new development improves housing affordability and access for our community.”

The Gentle Density CIP applies town-wide and is in effect until December 31, 2028. Applications are reviewed on a first-come, first-served basis, subject to eligibility requirements and funding availability. 

For more information or to apply, visit caledon.ca/housing. 

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Media contact:  
Communications   
905-584-2272 | communications@caledon.ca   
www.caledon.ca | @TownofCaledon   

About Caledon  
Caledon is home to close to 80,000 residents and 4,000 businesses and is well-known for its natural attractions, rural charm and vital role in the economic engine of the Greater Toronto Area. It will soon be one of Ontario’s fastest growing communities as it prepares to become a city of 300,000 residents and 125,000 jobs by 2051. Under its current strategic plan, Caledon’s priorities remain environmental leadership, community vitality and livability, enhanced transportation and mobility, and service excellence and accountability. For more information, visit Caledon.ca or follow us on Facebook, Instagram, LinkedIn, Bluesky and X (formerly Twitter).