City of Calgary Launches Backyard Suite Incentive Program with Up to $20,000 in Infrastructure Support

CALGARY – The City of Calgary is introducing a new Backyard Suite Incentive Program aimed at expanding housing choice and affordability across the city. The program officially launches on Monday, March 2, 2026, and is designed to make it easier and more affordable for homeowners to build backyard suites.

The initiative offers financial support to eligible applicants, including up to $15,000 toward general construction costs. Homeowners may also receive up to 40 per cent of underground infrastructure expenses — to a maximum of $20,000 — when both onsite and offsite service connections are required. Additional funding will be available for projects that incorporate accessibility features, involve heritage-designated properties, or fully align with the city’s Land Use Bylaw requirements.

City officials say the program responds directly to public demand. An online engagement conducted in fall 2025 gathered feedback from nearly 700 Calgarians, with 88 per cent indicating interest in building a backyard suite.

Kris Dietrich, Acting Director of Development, Business and Building Services, said the program is structured to support growth while maintaining neighbourhood character. He emphasized that backyard suites provide a balanced way to add housing density without dramatically altering existing communities.

Backyard suites — sometimes referred to as secondary suites or laneway homes — are self-contained housing units built on the same property as a primary residence. They offer flexible living arrangements for families supporting aging parents, young adult children, caregivers, or tenants.

Josh Howes, the city’s Backyard Suites Program Manager, said many residents see backyard suites as a lifestyle solution rather than just an investment opportunity. The program aims to remove financial and regulatory barriers for those who want to age in place, generate rental income, or create multigenerational housing.

The incentive is part of “Home is Here,” Calgary’s broader housing strategy, and is supported by a $10-million investment from the federal Housing Accelerator Fund. The funding is intended to accelerate new housing supply and address affordability pressures in rapidly growing urban centres.

Reid Hendry, Chief Housing Officer for the city, noted that backyard suites remain one of Calgary’s most underutilized housing forms. Expanding their development, he said, will contribute to a more diverse housing market and offer practical solutions for residents facing rising housing costs.

City officials caution that funding is limited. Applications will be reviewed on a first-come, first-served basis once the program opens.

With population growth continuing to place pressure on Calgary’s housing market, the Backyard Suite Incentive Program represents a targeted effort to encourage gentle density while giving homeowners new opportunities to adapt their properties to changing family and economic needs.