The City of Calgary is rolling out a new incentive aimed at homeowners who want to add a secondary home in their backyard.

Credit: City of Calgary
Starting March 2, 2026, the Backyard Suite Incentive Program will offer financial support to offset construction costs. Eligible applicants can receive up to $15,000 for general building expenses. If a project requires both on-site and off-site underground connections, the City will cover up to 40 per cent of the infrastructure costs, capped at $20,000.
Additional funding is also available. Property owners with designated heritage assets can access matching construction and infrastructure funds if they agree to preserve those assets. Projects designed for residents with mobility challenges may qualify for $7,500, depending on specific accessibility features. An extra $2,500 is available for suites that meet Land Use Bylaw rules without requiring relaxations.
The program applies to single, detached backyard suites on privately owned residential properties. Attached suites are excluded. Applicants can receive funding once per person and once per suite. Corporations are eligible only if they have no more than two directors.
Funding is tied to construction stages. Projects with a completed foundation inspection are ineligible for first-stage funding. If framing or final inspections are already deemed “acceptable,” those later funding stages are no longer available.

Credit: City of Calgary
According to a City online engagement in fall 2025, nearly 700 people responded, and 88 per cent expressed interest in building a backyard suite.
Kris Dietrich, Acting Director of Development, Business and Building Services, said the program is designed to expand housing options while fitting into existing neighbourhoods. Josh Howes, Backyard Suites Program Manager, noted many residents see backyard suites as a way to accommodate aging parents, adult children or renters.
The initiative is part of Home is Here: The City of Calgary’s Housing Strategy and is backed by a $10 million investment from the Housing Accelerator Fund. Funding will be distributed on a first-come, first-served basis.








