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Increasing an underutilized housing option

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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

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What is the Backyard Suites Incentive Program?

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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?

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• 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?

Apply for the Backyard Suites Incentive Program

• 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.