Halifax Second Unit Incentive Program: How to Get Up to $13,000 for Your Backyard Suite
The Halifax Second Unit Incentive Program offers eligible homeowners up to $13,000 in non-repayable grants toward adding a second unit to their property. HRM lists three project types: a basement apartment or in-law suite, a backyard suite, or a duplex conversion.
The deadline is close. Applications close October 11, 2026, and HRM says you must have a valid building permit issued by that date. The program may end sooner if funds run out. We checked the details below against HRM's program page on September 16, 2026.
What Is The Halifax Second Unit Incentive Program?
The Second Unit Incentive Program is a municipal grant funded through the federal Housing Accelerator Fund. It is part of HRM's strategy to increase housing supply by helping homeowners create new units. The grant is not a loan and does not need to be repaid, as long as you meet the program conditions.
Who Is Eligible?
According to HRM, you must be the owner of a property in Halifax Regional Municipality, live there as your primary residence, and be up to date on property taxes. Your building permit must have an application date after March 18, 2025, and it must be issued before you apply for the grant. The unit must comply with HRM zoning and backyard suite rules. In early 2026 Council also opened the program to non-profits, and HRM says more than one unit may be eligible, subject to land use rules.
HRM states there are no rent limits. You can rent the unit at market rent, use it for family, or use it yourself. The condition is that it cannot be used as a short-term rental for five years after the occupancy permit, or the grant must be repaid.
How Much Can You Receive?
| Grant | Maximum Amount | What It Covers |
|---|---|---|
| Halifax Water Fees Grant | Up to $2,762.96, plus $150 for backyard suites | Regional Development Charges for one secondary unit, and the backyard suite inspection fee |
| Water and Wastewater Infrastructure Grant | Up to $10,000 | New water and sewer connections, or well and septic systems |
| Combined | Up to $13,000 | Non-repayable if program conditions are met |
Grant amounts and program terms are subject to change. Always verify current details directly with HRM before budgeting.
Conditions That Can Trigger Repayment
HRM's page lists two main conditions. The grant must be repaid if you do not have your occupancy permit by April 1, 2027, and it must be repaid if the unit is used as a short-term rental within five years of occupancy. Because the grant depends on finishing on time, a project that is only starting design now should be planned carefully around the October 11, 2026 permit deadline and the April 1, 2027 occupancy date.
How To Apply
First, confirm your property and project qualify on HRM's Second Unit Incentive page. Second, apply for your building permit, and make sure it is issued by October 11, 2026. Third, submit your grant application with your issued permit. HRM says approved applicants are sent a cheque by mail. Fourth, complete construction and receive your occupancy permit by April 1, 2027. Note that contractors cannot apply for the grant on your behalf, so the application must come from the property owner.
How Does This Compare To Provincial Programs?
The Halifax Second Unit Incentive Program is separate from provincial housing programs. The provincial Secondary and Backyard Suite Incentive Program ended at the end of March 2026, and the federal Canada Secondary Suite Loan Program was cancelled before it launched. See our guides on grants and incentives for Halifax backyard suites and in-law suite grants in Nova Scotia for a full status check.
Common Questions
Can I apply before I start construction?
Yes. In fact your building permit must be issued before you apply, and it must be issued by October 11, 2026. You do not need to finish construction first, but you must have your occupancy permit by April 1, 2027 or repay the grant.
Do I have to rent the unit at an affordable rate?
No. HRM states there are no rent limits. The unit cannot be used as a short-term rental for five years after occupancy, or the grant must be repaid.
Can my contractor apply for me?
No. HRM says contractors cannot apply to the grant program on behalf of property owners.
Get Help Building Your Backyard Suite
At Halifax General Contractors, we build backyard suites and secondary suites across Halifax and can help you plan a realistic permit and construction schedule around the program deadlines. Learn more about our backyard suite building services.
For more on backyard suites in Halifax, see our guides on backyard suite costs, backyard suite permits in Nova Scotia, Halifax backyard suite rules in 2026, and secondary suite vs backyard suite vs ADU.
Request a free quote or call (902) 454-2273 to talk through your project.
