Orillia's Building Hope project is asking the city to waive more than $300,000 in development charges which would normally be payable on its multi-million dollar building.
The group is about to start work on a homeless shelter and supportive housing units and appeared before council Monday night to ask for the break.
Canada Mortgage and Housing has pledged up to $6 million to the group, provided the development charges are waived.
Building Hope's Glen Wagner also asked that the requirement for a 600 thousand dollar security deposit be removed.
The deposit is held by the city while construction is underway, and released back to the property owner when the project is complete.
Council has referred both requests to city staff for further study.