The City of Calgary has dipped into its taxpayer funded Housing Accelerator Fund to the tune of $10 million to launch a new Backyard Suite Incentive Program which begins March 2.
“We are strengthening Calgary’s housing options by introducing a thoughtfully designed incentive program,” says Kris Dietrich, acting director, development, business and building services, at 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.”
Dietrich says the city conducted an online survey late in 2025, to which 700 Calgarians responded, with 88% saying they would be 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,” says Josh Howes, backyard suites program manager.
“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.”
The city defines a backyard suite as a self-contained residence with two or more rooms and includes a kitchen, living, sleeping, and sanitary facilities.
Suites are required to have bedrooms with proper egress windows, separate bathroom and cooking facilities and an entrance that is accessible from outside without passing through the main dwelling unit. A shared stairwell is acceptable, but each unit must have a private entrance.
“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 at the city.
“The addition of more backyard suites will contribute to a more diverse housing market, improving housing choice and affordability for Calgarians.”
Financial support from the city includes up to $15,000 to support general construction costs, up to 40% of underground infrastructure costs, to a maximum of $20,000, when both onsite and offsite connections are required, as well as 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.
“Funding is limited, and applications are reviewed on a first-come, first-served basis,” says Hendry.
Learn more about eligibility and how to apply at Backyard Suite Incentive Program.
For general information about backyard suites, how to register a suite or apply for permits, go to Building a Backyard Suite.