Calgary continues to meet the city's evolving housing needs by launching a new Backyard Suite Incentive Program starting Monday, March 2, 2026.

The program makes it easier for Calgarians to build a backyard suite by providing support of:

·       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.

·       Additional funding for the scope of work related to accessibility features, properties designated as heritage, and for projects that meet the requirements of the Land Use Bylaw.

"We are strengthening Calgary's housing options by introducing a thoughtfully designed incentive program," says Kris Dietrich, Acting Director, Development, Business and Building Services, The City of Calgary. "This program encourages the development of backyard suites while also keeping the community in mind with homes that fit into existing neighbourhoods."

City of Calgary online engagement conducted in fall 2025 found that, of the nearly 700 people who responded, 88 per cent said they were interested in building a backyard suite.

"We heard from hundreds of Calgarians who want to add one of these suites to their properties. For many, it's a lifestyle choice. We are making room for homes that offer flexible solutions for families who want to grow in place with aging parents, young adult children, a nanny, or build with the intended purpose of renting," says Josh Howes, Backyard Suites Program Manager, The City of Calgary.

The Backyard Suite Incentive Program is part of Home is Here: The City of Calgary's Housing Strategy and is funded through an investment of $10 million from the Housing Accelerator Fund (HAF).

"Backyard suites are one of Calgary's most underused housing options, and this program will remove some of the barriers," says Reid Hendry, Chief Housing Officer, The City of Calgary. "The addition of more backyard suites will contribute to a more diverse housing market, improving housing choice and affordability for Calgarians."

Funding is limited, and applications are reviewed on a first-come, first-served basis.

Calgarians can learn more about eligibility and how to apply at Backyard Suite Incentive Program. For general information about backyard suites, how to register your suite or apply for permits, visit Building a Backyard Suite.