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 as a non-repayable grant toward the cost of adding a secondary dwelling unit to their property. This includes backyard suites, secondary suites within the main home, and garage conversions that create a self-contained unit.

This guide covers who qualifies, how much you can receive, what the money can be used for, and how to apply.

What Is The Halifax Second Unit Incentive Program?

The Second Unit Incentive Program is a municipal grant that provides a non-repayable cash payment to Halifax homeowners who add a new self-contained dwelling unit to their property. The program is part of HRM’s broader strategy to increase housing supply by incentivizing homeowners to create new rental units. As of 2026, the maximum grant amount is up to $13,000 per eligible unit.

Who Is Eligible?

To qualify, you must be the registered owner of a property in Halifax Regional Municipality, occupy the main dwelling as your primary residence, be adding a new secondary dwelling unit that did not previously exist as a legal unit, obtain all required permits and comply with HRM zoning and backyard suite rules, and commit to renting the new unit at or below HRM’s affordable housing thresholds for a minimum of five years.

How Much Can You Receive?

Grant amounts and program terms are subject to change — always verify current details directly with HRM before budgeting.

What Can The Grant Be Used For?

The grant is paid out upon completion of the unit and passing of final inspection. It is not paid in advance of construction. You need to finance the full backyard suite construction cost upfront, then receive the grant as a reimbursement after all permits are closed. Many homeowners use a home equity line of credit or construction loan to fund the build, then use the grant to pay it down.

How To Apply

First, confirm your eligibility on the HRM website. Second, apply for and obtain all required permits before construction begins. Third, complete construction in compliance with all permits and building code requirements. Fourth, pass all required inspections and receive final permit close-out. Fifth, submit your grant application with proof of permit close-out, proof of owner-occupancy, and your agreement to meet the rental affordability requirements.

How Does This Compare To Provincial Programs?

The Halifax Second Unit Incentive Program is a municipal grant and is separate from provincial housing programs. See our guide on every grant and incentive available for Halifax backyard suites for a full overview of all programs and how they can be stacked.

Common Questions

Can I apply before I start construction?

You should confirm eligibility before you start, but the grant is paid after construction is complete and permits are closed. Check with HRM directly before beginning your project.

What happens if I stop renting the unit or sell the property?

If you stop renting or sell before the five-year commitment period ends, you may be required to repay a prorated portion of the grant. Review the program’s terms carefully.

Get Help Building Your Backyard Suite

At Halifax General Contractors, we build backyard suites and secondary suites across Halifax and have helped many clients successfully access the Second Unit Incentive Program. 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.

Contact us today for a free consultation on your backyard suite project.