TEST Four Dwelling Units Per Property

Additional dwelling units vs. lodging houses

Additional dwelling units are not the same as lodging houses and are regulated differently. 

A “lodging house” is a building where persons are harboured, received or lodged for rent or hire with or without meals. Lodging houses are limited to one per lot. A “lodging house” permits a maximum of three “lodging units” which are rooms provided for rent or hire used as a sleeping accommodation that may contain bathroom facilities but no kitchen. 

“Additional dwelling units” are homes containing habitable rooms, including kitchen and bathroom facilities, for the private use of one household or single housekeeping unit.  

The establishment of a “lodging house” or “additional dwelling unit” requires a certificate of occupancy from the town. A “lodging house” also requires a business license from the town.  

Short-term Accommodation

It is possible that an additional dwelling unit may be used as a short-term accommodation, however it is limited to one per lot. A "short-term accommodation" typically describes rentals that occur over a short period of time (less than 29 days).  

Online platforms facilitate bookings and payments for short-term property rentals. All short-term accommodation (STA) requires a licence to operate in Oakville.

Here are some of the rules:

• Short-term accommodations are permitted in most housing types
• A short-term accommodation host must be the principal resident
• A short-term accommodation operator must obtain a town business licence 
• Companies such as Airbnb must also be licensed with the town

More information is available at the Short-Term Accommodation Licensing By-law page. 

Trees 

The removal of trees in the Town of Oakville is subject to the town’s Private Tree By-law 2017-038. The Private Tree By-law which regulates or prohibits the injury or destruction of trees on private property and makes it mandatory to obtain a tree permit to remove any tree. The proposed changes do not affect the applicability of this by-law. 

Natural areas 

The town’s official plans and zoning by-laws set out where and how development can take place within the town through a system of policies, designations, zones and regulations. New residential uses are not permitted within lands designated or zoned as Natural Heritage System or Natural Area. Therefore, it is not anticipated that the proposed changes will impact natural areas within the town.  

Hazardous lands such as floodplains and areas subject to erosion  

New residential development is not permitted within hazardous lands such as floodplains and areas subject to erosion. It is not anticipated that the proposed changes will impact natural hazards. 

If the development of additional dwelling units is within an area regulated by a Conservation Authority, approval by that Conservation Authority is required. Oakville is covered by two Conservation Authorities: a majority of the town is covered by Conservation Halton and a small portion along the western boundary by Credit Valley Conservation. More information, and to determine if an area is regulated, can be found on their websites.

Water and sewer systems 

Three dwelling units in a detached, semi-detached or townhouse are already permitted throughout the town within the urban area and serviced by municipal storm and sanitary sewer systems and drinking water systems.  

An additional dwelling unit, taking the total up to four units, will continue on the same system for stormwater, sewer and drinking water systems.

Gentle density housing, also commonly referred to as “missing middle” housing, provides a broader range and mix of low-rise medium density housing options within residential neighbourhoods. Gentle density may include, but is not limited to, basement apartments, duplexes, triplexes, fourplexes, garden suites, townhouses and low-rise apartments. 

Designated heritage properties and Heritage Conservation Districts 

A heritage permit is required prior to any change being made to the heritage attributes on an individually designated heritage property or on a designated property within a Heritage Conservation District. The heritage permit process ensures that significant built heritage resources and significant cultural heritage landscapes are conserved. Development, including the creation of additional dwelling units, both attached and detached, as well as any exterior site alteration, would only be permitted where it has been evaluated and it has been demonstrated that the cultural heritage value of the protected heritage property will be conserved. Lastly, a heritage permit is also required prior to issuing a building permit. 

For more information on the heritage permit process and heritage in Oakville, please visit the Heritage Planning page. 

Impact on housing affordability 

Converting an existing building into multiple units or constructing a purpose-built home containing multiple units is generally less expensive per unit than developing a new single dwelling with only one unit. For property owners, adding additional dwelling units provides an income stream when they rent out their additional units. For renters, they have access to more affordable homes in the form of a duplex, triplex, basement apartment, etc.  The Canada Mortgage and Housing Corporation (CMHC) identifies Ontario to have one of the least affordable housing markets in the country because housing supply hasn’t kept up with demand over the past 20 years in some of the major urban centres, including the Greater Toronto Area. Providing more housing options is intended to assist in generating greater housing supply and in turn, lower housing costs.

Impact on property taxes  

New construction or physical changes to your building or land may result in additional property taxes being levied. The Municipal Property Assessment Corporation (MPAC) is responsible for assessing the value of properties. New construction or physical changes to your building or land, including developing additional dwelling units, may result in an increase in the assessed value of a property. MPAC can provide the town with increased property values for the current tax year and two years prior. The town is legislated to issue additional property tax billings due to an increase in value.   

For more information on supplementary and omitted taxes, visit our Property Assessments & Appeals page or email propertytax@oakville.ca. 

Anticipated change to neighbourhoods 

Not all properties are large enough to accommodate four units, and not all detached property owners will create four dwelling units on their property. 

The permitted size of detached dwellings is not proposed to increase beyond what is currently permitted in the existing zoning regulations. For those who are interested to create four dwelling units on their property, new additional dwelling units would have to fit within the permitted building size on a property.

Property standards, noise and nuisance by-laws applicability 

Oakville’s property standards, lot maintenance, noise and nuisance by-laws set minimum standards for the upkeep of buildings, yards and properties in Oakville. These by-laws promote the health, safety, comfort, convenience and general welfare of residents and regulate or prohibit activities to ensure reasonable enjoyment of one’s property. All additional dwelling units would be subject to these by-laws. 

More information on requirements under these by-laws as well as how rules are enforced can be found on the town’s applicable pages: 

• Property Standards By-law, 
• Lot Maintenance By-law, 
• Noise By-law, and 
• Nuisance By-law.  

For the lands south of Dundas Street, current parking regulations require that a property with three dwelling units have four parking spaces. The draft zoning by-law amendment to permit four dwelling units per detached residential property would maintain a requirement for four parking space requirement.  

For the lands north of Dundas Street, current parking regulations require that a property with three dwelling units have a minimum of two parking spaces. Parking spaces for additional dwelling units are to be provided through on-street permit parking.  The draft zoning by-law amendment to permit four dwelling units per detached residential property but will not require additional parking on site. Parking spaces for additional dwelling units will continue to be provided through available on-street permit parking.

The intent of the parking regulations is to enable the development of additional dwelling units within existing neighbourhoods, where appropriate, and support the creation and enhancement of walkable and transit-oriented communities. Reduced parking is a key housing strategy within the federal Housing Accelerator Fund.

Municipal zoning 

A zoning by-law implements the policies of an official plan. It regulates how land and buildings are used, the location of buildings, lot coverage, building heights and other provisions necessary to ensure proper development. 

In Oakville, there are two zoning by-laws in effect, one for the lands south of Dundas Street and north of Highway 407, and another for the lands south of Highway 407 and north of Dundas Street.  

To permit four units throughout the town on detached residential properties, the town must amend both of its zoning by-laws to permit and regulate them.

If people want to develop their property with these uses and do not meet what the zoning rules state, then a zoning by-law amendment application or minor variance application may be required to consider the privately-initiated development proposal.

‘As of right’ development

‘As of right’ means that the development is permitted without additional zoning approvals from the town. The development would have to follow the rules of the in-effect zoning by-law.

Where permitted additional dwelling units are proposed

Three dwelling units in a detached house, semi-detached house, or townhouse are already permitted town-wide where located on urban residential land and serviced by municipal storm and sanitary sewer systems and drinking water systems. 

An additional dwelling unit, up to a maximum of four on a detached residential property, is proposed to be permitted town-wide. Four dwelling units will also only be allowed on urban residential land and serviced by municipal storm and sanitary sewer systems and drinking water systems.

Why an additional dwelling unit is being proposed 

As a result of Bill 23, the More Homes Built Faster Act, 2022, the province made changes to the Planning Act that require municipalities to allow up to three dwelling units on a residential property. The Town of Oakville implemented this change in April 2023.  

On January 22, 2024, as part of the town’s commitment to the federal Housing Accelerator Fund, Council passed a motion directing staff to draft by-laws that would, if passed, implement four dwelling units per property townwide without additional zoning approvals.  

The end goal is to improve housing availability, affordability and options for our growing community and promote gentle density.