The City of Calgary launched a new Backyard Suite Incentive Program on March 2, 2026, backed by a $10 million federal Housing Accelerator Fund. Build a legal backyard suite on your property and receive up to $35,000 in grants — plus bonus funding for accessible units and designs that meet Land Use Bylaw requirements without relaxations.
Launched March 2, 2026 by the City of Calgary, this program provides direct financial incentives to homeowners who build a new detached backyard suite on their residential property. The program is funded by a $10 million federal Housing Accelerator Fund grant awarded to Calgary.
A backyard suite (also called a garden suite or detached secondary suite) is a self-contained residential unit built on the same lot as the main home but as a separate, detached structure. It has its own entrance, kitchen, and bathroom — distinct from a basement suite or garage suite.
Backyard suites in Calgary typically rent for $1,400–$2,200/month depending on size and neighbourhood. Combined with a basement suite, Calgary homeowners can offset a significant portion of their mortgage through rental income from both units on the same property.
For every $10,000 of incentive funding received, you may not obtain a short-term rental licence (Airbnb, VRBO, etc.) for the backyard suite unit for one year. Plan for long-term tenants to maintain full grant eligibility.
Not all properties qualify. Here are the key eligibility rules for the Backyard Suite Incentive Program.
The incentive applies to a single detached backyard suite on your residential lot. The suite must be a separate, freestanding structure — it cannot be attached to the main house, garage, or any other structure on the property.
The property must be a residential lot within Calgary's city limits. The lot must support a secondary suite under the current Land Use Bylaw (R-CG, RC-1, RC-2, or similar residential designations that permit backyard suites).
Only one Backyard Suite Incentive is available per property. If you have already received funding under this program for a backyard suite on your lot, you are not eligible to apply again for the same address.
You must receive conditional program approval from the City before submitting your development permit or building permit applications. Applying for permits first may disqualify you from the incentive program.
The program layers multiple incentives. Here is how each component works and what you can receive.
Funding is first-come, first-served: The Backyard Suite Incentive Program is backed by a fixed $10 million federal fund. Once that pool is exhausted, the program closes. Conditional approvals lock in your position — don't wait. Contact us today to get your application moving before the funding runs out.
The application process is time-sensitive. Conditional approval must come before permits. We manage the entire process for you — from site design to grant documentation.
We assess your lot for backyard suite eligibility, setback requirements, utility connections, and Land Use Bylaw compliance. Our design team creates a suite plan optimized to qualify for all applicable bonuses.
Before any permits are filed, we submit your application for conditional incentive program approval with the City of Calgary. This secures your position in the first-come, first-served queue.
With conditional approval confirmed, we submit your development permit and building permit applications. The permit process runs concurrently with construction planning so no time is wasted.
Our crew builds your backyard suite to Calgary building code standards, with inspections coordinated through the City at each required stage. We document all eligible costs throughout construction for grant purposes.
After final inspection and occupancy sign-off, we compile your full cost documentation and submit it for grant disbursement. You receive your incentive payment directly from the City.
Custom Home Builders Ltd is BBB accredited. We provide written quotes before work begins, with no hidden fees or surprise costs mid-project.
Our in-house design team creates backyard suite plans specifically to meet the no-relaxation bonus requirements and mobility-accessibility standards — adding up to $10,000 in additional grants.
We serve Calgary, Airdrie, Okotoks, and Chestermere. Local knowledge of City permit processes and Land Use Bylaw zones means faster approvals.
Ready to build a backyard suite? Contact us for a free property assessment and grant eligibility review.
Get a Free AssessmentOr call us: (587) 896-0200
Calgary now has two major secondary suite incentive programs running simultaneously. Here's how they compare so you can decide which — or both — make sense for your property.
* Both programs can apply to the same property if you have an existing illegal suite AND want to add a new backyard suite. Contact us to review your options.
Common questions about Calgary's Backyard Suite Incentive Program.
What is the Calgary Backyard Suite Incentive Program?
The Calgary Backyard Suite Incentive Program is a new grant program launched on March 2, 2026, funded by a $10 million federal Housing Accelerator Fund allocation. It provides up to $15,000 for general construction costs and up to $20,000 for underground infrastructure costs (40% of eligible costs when both onsite and offsite utility connections are required), for a maximum of $35,000 in base funding. Additional bonuses of $7,500 for mobility-accessible units and $2,500 for designs requiring no Land Use Bylaw relaxations are also available. Heritage properties receive matching dollars.
Does everyone qualify for the full $35,000?
Not necessarily. The $15,000 general construction grant is available to all qualifying applicants. The additional $20,000 infrastructure grant applies only when both onsite and offsite underground utility connections are needed — this depends on your specific lot's existing service infrastructure. We assess your property upfront to identify exactly which incentive components you qualify for before you commit to the project.
Do I have to apply for the incentive before getting my building permit?
Yes — this is critical. You must receive conditional program approval from the City of Calgary before submitting your development permit and building permit applications. Applying for permits first may disqualify you from the incentive program entirely. Custom Home Builders Ltd handles the conditional approval application as the first step in our process, securing your place in the first-come, first-served queue.
Can I use my backyard suite as a short-term rental (Airbnb)?
There is a restriction tied to the grant amount. For every $10,000 of incentive funding you receive, you cannot obtain a short-term rental licence for that unit for one year. So if you receive the full $35,000, you would be restricted from short-term rentals for 3.5 years. After that period, you are free to pursue a short-term rental licence in accordance with City of Calgary regulations at that time. Long-term tenants remain permitted at all times.
How does the Backyard Suite Program differ from the SSIP basement suite grant?
The two programs are distinct. The SSIP (Secondary Suite Incentive Program) provides up to $10,000 (+ bonuses) to legalize an existing illegal basement suite. The Backyard Suite Incentive provides up to $35,000 (+ bonuses) to build a brand new detached backyard suite. They can apply to the same property — for example, if you have an illegal basement suite you want to legalize and you want to add a new backyard suite. Learn more about the SSIP program here.
The $10M fund is first-come, first-served. Conditional approval must come before your permits. Don't wait — contact Custom Home Builders Ltd for a free property assessment and grant eligibility review.
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