Ontario Bill 23: What It Means for Niagara Homeowners in 2026
April 10, 2026
If you live in St. Catharines, Niagara Falls, Welland, or anywhere else in the Niagara Region, you have probably heard someone mention Bill 23 in the same sentence as basement apartments, garden suites, or three units on one lot. The short version is that Ontario used Bill 23, the More Homes Built Faster Act, 2022 to push more gentle density and to limit how much municipalities could block small scale housing through zoning alone.
This article explains, in plain language, what that tends to mean for homeowners in 2026, what you still have to do before you build, and how extra units can affect value and rent in Niagara. It is not legal advice. Zoning, site conditions, and provincial rules change. Before you spend money, talk to your municipal planning and building staff, a qualified designer, and where needed a lawyer.
What Bill 23 Actually Allows (Up to Three Residential Units on Many Lots)
Under changes tied to the Planning Act and related housing policy, Ontario aimed to make it easier to add residential units on lots where residential use is already allowed, without forcing every homeowner through a rezoning or site specific amendment for a standard case.
In many residential situations in settlement areas with full municipal water and wastewater services, property owners may be able to create up to three residential units on a single lot as of right, meaning the underlying permission comes from provincial direction rather than a custom rezoning for that address.
Flexible layouts
The mix can take different forms, for example:
- Up to three units within the main house (for example basement suite plus main dwelling split into two units, where design allows), or
- Up to two units in the primary building and one unit in an ancillary building, such as a garage conversion, carriage house, or garden suite (subject to setbacks, height, and other rules).
Exactly how your lot can be configured depends on your municipality’s zoning bylaw, lot size, servicing, fire and building code, and provincial regulations in force when you apply. Do not assume three units without a planning check.
“No Rezoning” Does Not Mean “No Rules”
A common misunderstanding is that as of right means no paperwork. It does not.
As of right (where it applies) generally means you do not need a rezoning or Official Plan amendment for the use of adding those units in an eligible residential zone. You may still need:
- Site plan or other municipal approvals on some properties
- Heritage or conservation approvals if your property is affected
- Consents or variances for things that do not meet zoning standards (setbacks, parking layout, lot coverage)
Niagara is not one city. St. Catharines, Niagara Falls, Welland, Thorold, Fort Erie, Niagara on the Lake, Port Colborne, Grimsby, Lincoln, and West Lincoln each have their own planning and building departments. The same provincial idea gets applied locally with local forms, fees, and interpretation.
What You Still Need: Building Permits and Code Compliance
Every new unit, conversion, or structural change that triggers the Building Code requires a building permit when the law says so. That includes:
- New kitchens and bathrooms serving a separate unit
- Structural work for egress, openings, or new foundations
- Fire separation between units
- Electrical and plumbing systems for a second or third unit
The Ontario Building Code sets life safety rules: egress, smoke and CO alarms, fire rated assemblies, stair dimensions, ceiling heights for habitable space, and more. Your project must pass inspections.
Skipping permits to “save time” creates insurance, resale, and tenant safety risk. If you hire Byout Renovations, we plan for permitted, inspectable work. See our Legal Secondary Suites page for suite specific detail.
Exclusions and “Not Every Lot”
Provincial policy also lists situations where the standard as of right picture does not apply, such as certain hazard lands, partial or private servicing, Greenbelt related restrictions in defined areas, legal non conforming lots, and other special cases.
Rural or partially serviced lots around Niagara may face different rules than a typical urban lot on city water and sewer. Always ask the city early.
How This Can Affect Property Value in Niagara
Extra legal, permitted housing tends to support value when buyers want mortgage helper income, multigenerational living, or long term rental cash flow. Appraisers and lenders look for documentation: permits, final inspections, and compliance with the Building Code.
Illegal or undocumented suites often hurt at sale time or force a discount because the buyer cannot assume the same income or may need to remediate.
Rents in Niagara for a one bedroom basement suite are often discussed in a broad range (many landlords use roughly $1,500 to $2,500 per month before expenses depending on finish and location). We do not guarantee rent or appreciation. Use live listings and professional advice.
Types of ADUs You Can Build (Conceptually)
ADU means accessory dwelling unit or additional residential unit in policy conversations. Common forms in Niagara:
Basement suite (secondary unit)
A self contained apartment in the basement with its own kitchen, bath, and entrance where the lot and building allow. Usually the lowest cost way to add a unit if headroom and egress work. Must meet fire separation and egress rules. Our 2026 legal basement suites guide goes deeper.
Garage conversion
Turning an attached or detached garage into a living unit. Often needs insulation, floor structure, utilities, and parking replanning because you removed vehicle storage. Zoning may still regulate location and size of ancillary buildings.
Garden suite / backyard dwelling
A small home or laneway style unit in the yard, sometimes prefab. Popular for privacy from the main house. Typically higher cost per square foot than basement work because of foundation, services trenching, and weather exposure.
Each type must respect setbacks, height, lot coverage, and fire access in your local bylaw, plus the OBC.
What Niagara Homeowners Should Do Next
- Call your municipal planning counter and ask: “Does my lot qualify for additional residential units as of right, and what is the maximum unit count and configuration?”
- Engage a designer or architect if the city recommends drawings before a permit.
- Budget for permits, inspections, and code compliant construction, not just finishes.
- Talk to your lender if you need financing; programs and products change year to year.
- Hire a contractor who will not advise you to skip permits.
We Build Compliant Residential Work Across Niagara
Byout Renovations works on basements, interior conversions, and outdoor structures with Niagara weather and local inspectors in mind. If you are exploring a second or third unit, contact us for a conversation and site visit. We will be straight with you about what is realistic on your property.
April 2026. Bill 23 and related Ontario regulations, municipal bylaws, and interpretations change. Confirm eligibility, zoning, and permit requirements with your municipality and qualified professionals before you build.