Backyard Suites Incentive Program
Calgary continues to respond to evolving housing needs by introducing the Backyard Suite Incentive Program.
Starting Monday, March 2, 2026, qualifying homeowners can apply for incentives that help make building a backyard suite easier.
Increasing an underutilized housing option
At the launch of the program there were fewer than 400 backyard suites in Calgary. The addition of missing middle housing contributes to a more diverse housing market, improving affordability for Calgarians.
City of Calgary online engagement in fall 2025 found that of the nearly 700 people who responded, 88 per cent said they were interested in building a backyard suite or had already built one.
This incentive program is designed to keep the community in mind by making homes that fit into existing neighbourhoods
What is the Backyard Suites Incentive Program?
The incentive program is designed to reduce some of the costs and barriers associated with building a backyard suite. Qualifying applicants may receive:
- Up to $15,000 to support general construction costs.
- Up to 40 per cent of underground infrastructure costs, to a maximum of $20,000, when both onsite and offsite connections are required.
- Matching construction and infrastructure incentive dollars will be available to owners of properties identified as heritage assets who agree to terms that will protect and preserve those heritage assets.
- $7,500 for units designed to support people experiencing mobility challenges. Design feature requirements vary depending on specific accessibility requirements and will be assessed individually.
- $2,500 for projects designed in a way that requires no relaxations to the Land Use Bylaw. By meeting all the rules, integration into the existing communities will be done thoughtfully.
Who is eligible?
- Eligibility: Single, detached backyard suites on residential properties are eligible. Suites attached to the main home are not eligible.
- Program participation limit: You can receive funding once per applicant and once per backyard suite.
- Ownership requirements: The program is for privately owned properties only. Corporations may apply if they have no more than two directors.
Funding stages eligibility
For projects already started construction, eligibility is as follows:
First stage of funding (foundation stage)
If the foundation is present at program verification or the building permit has a completed foundation inspection, the project is not eligible for this stage.
Second stage of funding (framing stage)
If the framing inspection is “acceptable,” “acceptable add inspection”, or “acceptable with conditions,” the project is not eligible for this stage.
Third stage of funding (final stage)
Any “acceptable” outcome on a final inspection renders this project ineligible for funding through the Backyard Suite Incentive Program.
How do I apply?
Applicants must provide all information requested on the application form, as well as submit the following:
- Site Plan of the subject property with the proposed suite included. This must include parcel coverage, distances to the property lines and main dwelling dimensions, and the location of all parking stalls.
- Land Title for the property and any other requested proof of ownership, which may include a purchase agreement or possession letter.
Applicants should seek conditional approval into the Program before applying for development and building permits. More information about development and building permits can be found at Building a backyard suite.
What is a backyard suite?
A backyard suite is a second residence located behind or beside the primary residence. They are sometimes referred to as laneway houses, carriage houses, garden suites, or garage suites.
Is a backyard suite right for me?
Backyard suites provide flexibility and choice for homeowners by providing a housing form that can allow a property to better suit changing household needs.
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Closer care for loved ones
Backyard suites can help aging parents stay close, offering nearby support while also reducing pressure on other housing options.
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From parent zone to space of my own
A suite in your backyard could be an ideal transitional home for teens and young adults who would like their own space.
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From rental hunt to rental home
Backyard suites create new housing options for renters and income opportunities for homeowners.
How is The City funding this program
The Backyard Suite Incentive Program is part of Home is Here: The City of Calgary’s Housing Strategy. All program funding is made possible through federal funds.
The City of Calgary received $10 million from the Housing Accelerator Fund (HAF) to develop the incentive program. It is meant to help homeowners build backyard suites more easily and affordably.
Funding is limited, and applications are reviewed on a first-come, first-served basis.
Frequently asked questions
Why is The City offering a Backyard Suite Incentive Program?
The intent of the Backyard Suite Incentive Program is to make it easierfor Calgarians to build backyard suites.
Backyard suites are an underutilized housing solution in Calgary.
The addition of missing middle housing, such as backyard suites, contributes to a more robust and diverse housing market, improving affordability for Calgarians.
Can you build a backyard suite on an existing garage?
Most existing garages require extensive upgrades to be the foundation of a backyard suite. For details, please visit Building a backyard suite for more information.
Where can I find the bylaw and building permit processes and some of the requirements?
You can find the bylaw and building permit processes, as well as some requirements, on calgary.ca. Building a backyard suite and Building advisories, bulletins and variances provide information about backyard suites.
Can I apply more than once?
Each applicant can receive the incentive funding only once.
Can I use my backyard suite for short-term rentals?
Not for a period of time if you receive incentive funding. Applicants must agree that a short-term rental licence will not be issued by The City for one year for every $10,000 received after the funds have been issued.
How do I apply for the additional incentive funding?
Can homeowners build their own backyard suite?
Backyard suites can be complex. Homeowners should consult a professional.
How much does it cost to build a backyard suite?
It is best to consult a professional to get an estimate.
Why support backyard suites?
Backyard suites remain an underutilized housing solution in Calgary despite their potential to provide homeowners with flexible options such as multigenerational living arrangements, and inclusive housing for equity-deserving communities, and rental income. They also provide housing that increases density, while maintaining the character of existing communities.
I’m in! I’d like to add a backyard suite.
What’s next?Visit Building a Backyard Suite for more detailed information on permits, application requirements, and common rules.
Building a backyard suite