Additional Residential Units (ARU) Zoning By-law Amendment 2026

The Province of Ontario is actively working toward creating 1.5 million homes by 2031.

This plan is part of a broader strategy to address the housing supply crisis in Ontario and improve the quality of life for residents. The Province has introduced various pieces of legislation since 2019, which collectively aim to remove barriers to the construction of attainable and affordable new homes in Ontario.

The Niagara Region is forecast to accommodate a minimum population of 694,000 people by 2051. This represents an increase of over 200,000 people from 2021.

More specifically, the Town of Pelham population is also expected to grow to a minimum population of 29,000 by 2051. This represents an increase of at least 10,800 people from 2021. The Town of Pelham is committed to welcoming and accommodating a diverse population from all backgrounds, ages, and income levels.

One way the Town of Pelham can provide for an increased mix of housing which supports aging in place, multiple-family households, and various ownership models is the Secondary Dwelling Units (SDUs)/ Additional Residential Units (ARUs).

The purpose of the Additional Residential Units (ARU) Zoning By-law Amendment 2026 is to update to ensure alignment with the current provincial planning legislation.

Additional Residential Units (ARU) Zoning By-law Amendment 2026 Resources

Initiated Zoning By-law Amendment for Additional Residential Units, 2025-0262-Planning - December 17 Council Meeting

View the full council report here

Initiated Zoning By-law Amendment for Additional Residential Units

Council received report 2025-0262 “Initiated Zoning By-law Amendment for Additional Residential Units,” for information and directed Community Planning & Development staff to proceed with a Zoning Bylaw Amendment for Additional Residential Units. During the 2025 Town of Pelham Housekeeping Zoning By-law Amendment project, it was clearly identified by numerous community residents that the provisions of ARU/SDUs required further review and consultation. The Council-Initiated ARU Zoning By-law Amendment is proposed to proceed in Q1 of 2026. A public consultation Open House is tentatively scheduled for January 22, 2026, at the Meridian Community Centre, and a Public Meeting under the Planning Act is suggested for February 11, 2026, in Council Chambers. www.pelham.ca/aruzoning

What is an Additional Residential Unit (ARU)?

An Additional Residential Unit (ARU) is a separate and self-contained residential unit that is located on the same property as a primary home. In Pelham, they are permitted on lots containing a single detached, semi-detached or townhouse dwelling. ARUs must contain a kitchen, bathroom, sleeping area, and separate entrance. Known by many names, ARUs can also be referred to as second dwelling units, basement apartments, attached suites, tiny homes, coach houses, granny flats, and more.

What can an Additional Residential Unit look like?

There are several ways Additional Residential Units (ARUs) can be implemented, including within the primary building or as a detached structure. Some examples of ARUs can include basement units, upper-level or attic units, main-level additions, garage conversions, or units within a detached structure.

What can be considered benefits of Additional Residential Units?

Like the rest of the Niagara Region, Pelham is growing. The Town’s population is expected to rise to 29,000 by 2051. Additional Residential Units (ARUs) are an essential tool for managing this growth in a way that benefits the community and residents of Pelham.

Financial Benefits:

ARUs can provide additional income for homeowners by collecting rent.
ARUs can reduce individual housing costs for multi-generation families that can pool their resources and live together but still have dedicated and separate living spaces.
ARUs can increase the resale value of a property.
Greater housing availability contributes to the economic wellbeing of local communities and industries by helping to attract and retain skilled workers.

Community Benefits:

ARUs provide a solution to the need for modest-sized, rental housing for households such as young or elderly adults.
ARUs provide people with more housing options as the needs of their family change over time. It helps to ensure that people have access to the right housing for their life circumstance.
ARUs help preserve and increase neighbourhood vitality. They create space to welcome new residents, while giving long-time residents options for downsizing within the community.

Environmental Benefits:

ARUs are often smaller in size than other dwelling types and use existing services and residential land. They tend to be more energy and resource efficient, minimizing the environmental footprint of new housing creation.
ARUs focus housing in areas with existing development, reducing the need for sprawl that encroaches on agricultural land.