Unlocking Housing Potential
in The Blue Mountains
What You Need to Know About ARU'S
With housing affordability at the forefront of community discussions, The Town of The Blue Mountains has taken proactive steps to encourage the development of Additional Residential Units (ARUs)—self-contained housing units that can be located within, attached to, or detached from a primary dwelling.
In the most recent issue of the Town News: The Blue Mountains Newsletter, the Town outlined how it is supporting homeowners in navigating the planning, building, and financial considerations for ARUs. These efforts aim to increase the local housing stock while ensuring that homeowners have the resources and knowledge needed to make informed decisions.
If you’re considering adding an ARU to your Blue Mountains property—whether to house family members, generate rental income, or provide housing for the local workforce—here’s what you need to know.


The Town’s Approach to Additional Residential Units

ARU-Friendly Zoning & Supportive Planning
- Any property zoned for residential use is eligible for an ARU.
- The Town’s Building and Planning Services team is available to provide guidance throughout the process.
- A public guide detailing step-by-step requirements for ARU approvals is available for homeowners.

Financial Incentives & Reduced Costs
- No Development Charges: ARUs are exempt from Town and County development charges, helping to lower initial costs.
- Housing Within Reach Community Improvement Plan (CIP): Homeowners can apply for grants and loans to assist in converting, improving, or building new ARUs.

ARU Eligibility: Urban vs. Rural Properties
The type of property you own determines how many units you can add:
- Urban Properties (Municipal Services): Can have up to three residential units, including the main home and two ARUs (either attached or detached).
- Rural Properties (Private Well & Septic): Can have up to two units, including the main home and one ARU (attached or detached).
- Niagara Escarpment Plan (NEP) Lands: These properties have more restrictions—only one ARU is allowed, and it must be within the main building.
First things first: Can you legally add a Garden Suite to your property?
Each municipality in Ontario has its own zoning bylaws that regulate minimum lot size, unit placement, and setbacks.
Here’s what you need to check:
- Your Zoning Classification: Most residentially zoned properties allow a Garden Suite, but some areas have restrictions (e.g., heritage districts or environmentally protected lands). Check with your municipality.
- Lot Size Minimums: Some municipalities require a minimum lot size for detached ARUs, ensuring enough space for both the primary and secondary dwelling.
- Setback Requirements: Your Garden Suite must be a certain distance from property lines, the main house, and other structures. Common setback rules include:

Size, Setbacks, and Design Considerations
- For ARUs within the main home: The unit cannot exceed 50% of the primary dwelling’s floor area or 100 sq. m—whichever is greater.
- For detached ARUs: The unit must:
- Fit within lot coverage allowances (+5% additional coverage permitted).
- Be located within 50m of the main home.
- Maintain setbacks, including a minimum 1.2m rear yard setback.
- Not exceed 5m in height, unless built above another use (such as a garage), in which case it can be up to 8m.

ARUs & Rental Rules
- Long-term rentals (30+ days) are permitted for both the main home and ARUs.
- Short-term rentals (Airbnb, etc.) are NOT permitted in residential zones.
What This Means for Homeowners & the Local
Housing Market
Encouraging ARU development is a key step in increasing attainable housing options in The Blue Mountains. Whether it’s a Garden Suite for an aging parent, a rental suite for local workers, or extra space for growing families, ARUs provide flexible, sustainable, and practical solutions for housing needs.
The Housing Within Reach CIP makes this even more accessible by helping to offset construction and legal costs—reducing the financial barrier for homeowners who want to add rental units or multigenerational housing to their property.
As housing demand continues to rise in South Georgian Bay, communities that streamline the approval process and support ARU development will be better positioned to retain workers, support families, and sustain long-term community growth.
Want to Learn More?
For full details, check out the Town of The Blue Mountains’ latest newsletter here.
Unlocking Housing Potential in The Blue Mountains, are you interested in navigating the ARU approval process? The Town has published a comprehensive guide to help property owners through the zoning, permitting, and building process. You can access the “Additional Residential Units Building Permit and Approvals Guide” here.
Join the Coversation
Have thoughts on The Blue Mountains’ ARU policies? Are you considering building an ARU but have concerns about feasibility, financing, or permitting?
We’d love to hear from you – send us an email to info@attimohomes.com or fill our ATTIMO’s contact form.
By working together, we can transform residential properties into housing solutions that benefit homeowners and the broader community alike.