The City of Calgary's Backyard Suite Incentive Program: Save $35,000 on a Garage Suite and Laneway Home (Updated)

The City of Calgary just announced the long awaited Backyard Suites Incentive Program. Applications for the grant program opened on March 2, 2026. The program will allow qualifying homeowners to be reimbursed for as much as $35,000 when they build a laneway home. In total, $10 million is available for Calgarians. We’ve put together all the details you need to take advantage of the project.

Last updated: March 12, 2026

Am I eligible for Calgary’s Backyard Suites Incentive Program?

There’s a few requirements for the Backyard Suite Incentive Program:

• The suite must be separate from the main dwelling unit (i.e., no basement suites)

• The property must be residential

• The property must be privately-owned (or be owned by a corporation with two or fewer directors)

• The City needs to see proof of land title and ownership.

• You will need to provide a site plan

• You can only apply to the program for one project

• A project can only receive funding once

If you're looking to learn more about getting funding for a basement secondary suite, read our blog post here.

When and how can I apply?

Applications are open as of March 2, 2026. You can make an application on the City of Calgary’s website here.

What kind of costs can I be reimbursed for?

The program designates funds for both general construction and meeting certain requirements. You can get a maximum of $35,000 in total. Here's what the City has announced so far:

Requirement	Amount
General Construction	$15,000
Underground Infrastructure	40% of costs up to $20,000
Designs That Do Not Require Relaxations to Bylaws	$2,500
Support for People with Mobility Challenges	$7,500
Preserving Heritage Assets	To be confirmed

Some of these requirements for rebates on the cost of a laneway home like preserving heritage assets or accessibility support are assessed on a case-by-case basis.

Do I need to apply before I start building?

Applications can be submitted after your project has begun but they may not be eligible for the full amounts if they are past the foundation and framing inspections. So although you’re not required to do so, it you will be able to get more money from the program by applying before you begin construction. When you work with us, we will handle all of the permitting and inspections for you.

Can a contractor like Sunurban Developments apply for me?

We can help you, but you will need to submit the application yourself! Like with previous incentive programs for housing, only homeowners can apply. You can submit an application here.

How long does approval for the program take?

Typically it takes about 10 days to process an application to the City of Calgary Backyard Suite Incentive Program.

How do I get reimbursed?

When you apply to the program, you will be given a pre-approval amount based on your suite. To be reimbursed, you need to submit receipts or paid invoices related to the cost of your project. Any costs coming from the completion of your laneway home, backyard suite or garden suite can be submitted as proof of the general construction costs. Specific invoices for the cost of underground utilities may be required.

When does the program close?

No deadline has been announced. The funds are expected to remain available until they have been used up. There is a total of $10 million available for this program.

Why is the City of Calgary offering reimbursements?

The program encourages new housing to be built, especially housing that is more affordable. It covers what the City calls "the missing middle": just 400 garage and laneway suites existed in Calgary the time of the launch. Our city should be an affordable place to live that offers residents a variety of places to live while allowing for homeowners to build responsibly and increase their properties' value. You can learn more about the City's Housing Strategy here.

Where does the money come from?

The City of Calgary’s program budget comes from the federal government's Housing Accelerator Fund. As of March 2025, the program had already incentivized 7,643 projects in the city. Calgary has been a top performer in the $4 billion fund which is adminsitered by the Canada Mortgage and Housing Corporation. In total, Calgary is eligible for $251,309,276. Part of the condition for the funding has been to make it easier to develop projects in the city and downtown, as well as the relaxation of unnecessary requirements, streamlining permit approvals, and reassessing parking minimums.