The City of Calgary launched its Backyard Suite Incentive Program on March 2, 2026, providing financial assistance to homeowners who want to build new backyard suites. The program is part of Calgary’s Home is Here Housing Strategy and is funded through the federal Housing Accelerator Fund (HAF). The city received $10 million to support the program and encourage the creation of additional housing across Calgary.
What is a backyard suite?
A backyard suite is a self-contained residential unit located on the same property as a primary home. It can be a separate structure or a suite constructed above a detached garage and includes its own entrance, kitchen, bathroom, living area and sleeping space. For homeowners, a backyard suite can provide rental income or accommodate family members, helping increase Calgary's housing supply.
How much funding is available?
One of the program's main attractions is financial assistance toward construction costs. Eligible homeowners may receive up to $15,000 toward general construction costs. In addition, the program can provide up to 40 per cent of eligible underground infrastructure costs, to a maximum of $20,000, where both on-site and off-site connections are required.
There are also additional incentives. Qualifying projects designed to support people experiencing mobility challenges may receive $7,500 for accessibility features. Projects that meet the applicable Land Use Bylaw requirements without requiring relaxations could qualify for another $2,500. Heritage properties might also qualify for matching construction and infrastructure incentives if the required preservation conditions are met.
This means a qualifying project could potentially receive substantial assistance, although homeowners should not assume that every project will qualify for the maximum amount.
Who can apply?
The program is primarily intended for privately owned residential properties with eligible single, detached backyard suites. Attached suites are not eligible under this particular program. Applicants are generally limited to receiving funding once, and funding is tied to both the applicant and the backyard suite.
Homeowners must understand that the timing of their construction matters. Certain funding stages may not be available if construction has already progressed beyond the required inspection point. Planning the application and construction schedule carefully can, therefore, be important.
Why backyard suites matter
Backyard suites can offer several benefits to Calgary homeowners and communities. A homeowner might use one for an aging parent who wants to remain close to family, an adult child who needs affordable housing or a long-term tenant. The arrangement can provide additional housing without requiring a completely separate residential property.
The city says backyard suites were an underused housing option when the program launched, with fewer than 400 in Calgary. Its 2025 public engagement also found strong interest, with 88 per cent of nearly 700 respondents indicating they were interested in building a backyard suite or had already built one.
Important considerations for homeowners
A backyard suite is a significant construction project, so homeowners need to investigate zoning, development permits, building permits, servicing, utility connections, construction costs and financing before proceeding. Professional design and construction advice can help avoid costly surprises.
Homeowners must consider how the suite will be used. If the goal is rental income, expected rent should be compared with construction, financing, maintenance, insurance, utilities and property-related costs.
It’s also important to understand the program's rental restrictions. Homeowners receiving incentive funding agree that the property cannot receive a short-term rental licence for a specified period based on the amount of funding received.
In closing
The Backyard Suite Incentive Program represents an opportunity to add housing while making better use of existing residential properties. For homeowners considering a suite, the financial incentives may reduce some of the upfront costs and make a project more achievable.
Opting into the program is one way to add value to your property. Remember, I’m here to offer any advice if you’d like a real estate expert’s opinion.
