Kitchener City Council approved a range of housing, sustainability and governance initiatives at its December 15, 2025 meeting, marking a significant step in the municipality’s efforts to address affordability pressures, modernize operations and strengthen community engagement.
The most consequential decision was council’s approval of the Missing Middle and Affordable Housing Community Improvement Plan (CIP), a new incentive framework designed to expand housing supply and improve affordability across the city. Supported by $6.21 million in federal funding from the Housing Accelerator Fund, the CIP introduces two grant programs aimed at encouraging the development of diverse and affordable housing forms.
The Additional Dwelling Units Grant is intended to promote the creation of affordable, energy-efficient and accessible housing within existing neighbourhoods. The Missing Middle Affordable Housing Grant will support affordable units in mixed-use and multi-dwelling buildings up to eight storeys, a segment increasingly viewed by planners as critical to addressing gaps between single-family homes and high-rise developments.
City staff estimate the CIP will generate at least 98 new housing units by October 2026, including 49 affordable homes. Over the next decade, the initiative is expected to support the construction of approximately 500 units. Council said the plan reinforces Kitchener’s broader commitment to building connected, sustainable neighbourhoods while responding to ongoing housing supply challenges.
Council also confirmed that Inclusionary Zoning, previously approved in 2024, will officially commence in 2026 within Kitchener’s major transit station areas. Under the policy, new residential developments of 50 units or more will be required to include up to 2% affordable units starting in 2026. Inclusionary Zoning is one of ten Housing Accelerator Fund initiatives the city has committed to implementing under its contribution agreement with the Canadian Mortgage and Housing Corporation. Alongside other programs, the measure is expected to contribute to the delivery of hundreds of affordable housing units over the coming years.
In a related housing update, staff briefed council on the status of the property tax exemption program for affordable housing. During its first year, the Region of Waterloo received 13 applications for the exemption, six of which are tied to properties in Kitchener. All applications are currently under review by the Municipal Property Assessment Corporation. A recent court ruling may allow more non-profit organizations to qualify for permanent property tax exemptions, further supporting council’s objective of expanding affordable housing and strengthening neighbourhoods.
Beyond housing, council approved an operational change aimed at reducing costs and improving environmental sustainability. Beginning February 1, 2026, the city will discontinue the inclusion of return envelopes with mailed paper property tax and utility bills. The decision follows a municipal survey indicating that most Ontario municipalities have already eliminated return envelopes.
City staff estimate the change will save approximately $5,400 annually, reducing costs for both the tax base and utility enterprises. Council also cited environmental benefits, including reduced paper use and a smaller carbon footprint, aligning the decision with the city’s “Cultivating a Green City Together” strategic priority.
Council further approved amendments to Kitchener’s Community Engagement Policy following a comprehensive review process that included extensive public input. The updated policy aligns with current industry best practices, provides a clearer framework for how the city engages residents, and reflects evolving community expectations around transparency and inclusion.
According to staff, the amendments carry no financial implications and support the city’s goal of fostering a caring and inclusive community. The revised policy is intended to guide future engagement efforts across departments and projects, ensuring consistency and clarity in how residents are informed and consulted.
Taken together, the decisions from the December 15 meeting highlight council’s focus on balancing long-term housing affordability with fiscal responsibility, environmental sustainability and effective governance. With several initiatives tied to federal funding timelines and future implementation dates, city officials emphasized that continued progress will depend on coordinated action between council, staff and external partners in the years ahead.
