City of Calgary launches $15,000 incentive program to boost backyard suites

February 26, 2026

RED FM News Desk

The City of Calgary is rolling out a new incentive program aimed at making it easier and more affordable for residents to build backyard suites.

Beginning March 2, eligible homeowners can apply for up to $15,000 to help cover general construction costs. The program will also provide up to 40 per cent of underground infrastructure costs — to a maximum of $20,000 — when both onsite and offsite utility connections are required.

Additional funding will be available for projects that include accessibility features, involve properties designated as heritage sites, or meet specific requirements under the city’s Land Use Bylaw.

The initiative follows an online study conducted in the fall of 2025, which found strong interest among residents. Of nearly 700 respondents, 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,” said Josh Howes, the city’s backyard suites program manager. “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.”

According to a city news release, applications will be reviewed on a first-come, first-served basis. Officials note that funding is limited.