Create more housing. Strengthen your community.
The Halifax Regional Municipality's Second Unit Incentive Program (SUIP), funded through the municipality’s Housing Accelerator Fund (HAF) Action Plan, offers financial support to property owners aiming to build secondary units such as basement suites, backyard suites or duplex conversions.
This initiative seeks to offset costs and increase housing availability by addressing common barriers associated with secondary unit construction.
The program provides two distinct grants:
- Water and Wastewater Infrastructure Costs Grant
- Halifax Water Fees Grant.
- Financial support: Non-repayable grants are available to help cover Halifax Water Regional Development Charges and water/wastewater construction and installation costs.
- More housing options: Create a space for family members or a long-term rental unit.
- Flexible use: There are no rent restrictions – you decide how much to charge (note that short term rentals are not permitted for up to five years).
- Halifax Water fees grant: Up to $2,762.96 to cover required Regional Development Charges (RDC) for your second unit, and $150 to cover the initial required inspection fee for a backyard suite.
- Water and wastewater infrastructure grant: Up to $10,000 to help cover costs related to new water and wastewater connections to the Halifax Water system, or onsite well and septic systems.
Property owners may be eligible to apply for both grants based on the eligibility criteria.
Grants apply to the following housing types:
- Secondary suites: Self-contained units inside existing homes, such as a basement apartment.
- Full second units: Conversions that turn single dwellings into a duplex.
- Backyard suites: Detached units located within a property, such as a garden suite or tiny home.
Important Dates:
- All grant applications must be submitted by June 1, 2026.
- Construction must be complete and the occupancy certificate must be issued by October 11, 2026.
Eligibility:
- Must be your first secondary unit.
This grant only applies to property owners constructing their first secondary units. Any properties with existing secondary units do not qualify for this program.
- Be the owner (or one of the owners) of the property;
If there are other owners of the property, the applicant must provide proof of consent to the grant from all other property owners in the Grant Agreement form.
- Reside on the property as their primary residence;
Applicant must declare that the property where the second unit will be built is their primary residence in the Grant Agreement form.
- Be up to date on property taxes;
The applicant must declare there are no outstanding property taxes.
- Have a valid building permit for a backyard/secondary unit;
Applicant must provide their issued building permit number for their backyard/secondary suite. The building permit must have been submitted after the start of this program.
- Submit application(s) by June 1, 2026.
Applications are received and assessed on a rolling basis. Planning & Development staff will inform applicants if their application requires more information to be approved. Applicants should note that the program may also end before June 1, 2026, if the allocated funds for the program are depleted, the program is cancelled by Council resolution, or the end of the Housing Accelerator Fund Agreement.
Complete construction by October 11, 2026.
The time that it takes to construct a secondary or backyard suite varies. Applicants can expect around 2-10 months for construction and should allot themselves enough time for construction before the end of the program.
If you meet the eligibility criteria above, see how to apply on the next tab.
Getting started
Register a customer portal account
Applicants must have or register for an HRM customer portal account.
Building permits and grants are applied for through the customer portal.
If you you need assistance using the customer portal, please visit our how to apply page.
Contractor profile
Contractors applying for a building permit on behalf of property owners must create a contractor profile within HRM’s customer portal.
Please note that contractors cannot apply to the grant program on behalf of property owners.
Apply for your building permit
Apply for a building permit for a backyard suite or secondary suite.
For information on the requirements for building a backyard/secondary suite, please visit HRM’s Building and Development Permits web page.
Apply for your grant
Once your building permit is issued, you as the property owner are eligible to apply for the Second Unit Incentive Program. Grant applications must be completed and submitted by the property owner.
- Complete the Grant Agreement Form.
- Note: All applicants must sign the grant agreement within the form.
- Water and Wastewater Infrastructure grant agreement form
- Halifax Water Fees grant agreement form
- Note: All applicants must sign the grant agreement within the form.
- Apply for your grant through the customer portal:
- Select "Initiate planning application"
- Select "Second Unit Incentive Grant"
- Within the application choose one or both grant types, (based on eligibility).
The grant agreement outlines the terms of repayment if the unit is not constructed by October 11th, 2026, or if it is used as a short-term rental within five years of receiving an occupancy permit. Signing the agreement binds the applicant to the grant agreement terms.
Get approval
Staff will review grant applications for eligibility and completeness. Once your application is approved you will be mailed a cheque for the approved funds.
Get your occupancy permit
Halifax water fees grant
When construction is complete, and all inspections have passed the occupancy permit will be issued.
Water and Wastewater Infrastructure Costs Grant
For the Water and Wastewater Infrastructure Costs Grants, applicants must submit related invoices and required documentation through the grant application on the customer portal when all inspections on the building permit have passed.
When all grant criteria have been met the occupancy permit will be issued.
If the final total spent is higher than the estimates submitted at time of application, HRM will provide the difference up to a maximum of $10,000, provided there are funds available in the program.
Note:
All applicants must obtain their occupancy certificate by October 11th, 2026, or they will be required to repay the grant funding they received.
Grant funding will also need to be repaid if the new backyard/secondary suite is used as a short-term rental within five years of receiving the occupancy permit.
Available Funding
Applicants may be eligible for up to $12,762.96 for a secondary suite, or $12,912.62 for a backyard suite if they qualify for both funding streams.
However, not all applicants will qualify for funding from both grants. The Halifax Water Fees Grant applies only to properties within the HRM water/wastewater service area, and the inspection fee is required only for backyard suites.
Additionally, not all applicants will qualify for the full $10,000 from the Water and Wastewater Infrastructure Cost Grant.
| Grant Stream | Maximum Grant | Eligible Costs |
|---|---|---|
| Grant Stream | Maximum Grant | Eligible Costs |
| Water and Wastewater Infrastructure Costs Grant | $10,000 |
• Construction costs of installing pipes and lateral to connect new units to Halifax Water water/wastewater systems. • Construction costs to connect units to on-site well and/or private sewage disposal systems. |
| Halifax Water Fees Grant | $2,762.96, or $2,912.96 for backyard suites |
• Halifax Water Regional Development Charges (RDCs) for constructing a multi-unit dwelling. • Inspection fees (required for backyard suites only). |
What are the Halifax Water Regional Development Charges (RDCs) and how do they apply?
The RDCs consist of water and wastewater charges. RDCs are different for a single unit dwelling versus a multi unit dwelling. When an owner of a single unit dwelling adds a second unit, the building is then considered a multi-unit dwelling.
The net RDC cost for a second unit is $2,762.96. This amount would be paid by the applicant on permit submission. This amount would be reimbursed upon successful approval of the grant.
Common Questions
- Can I apply if my unit is already under construction?
No. Building permits must be submitted after the program start date, March 18th, 2025 to qualify.
As per Administrative Order (AO-2025-001-ADM the SUIP grant) the following are ineligible:
- Second units that are either existing or under construction prior to the coming in force of this Administrative Order; or
- Applications filed with the Municipality for a building permit for a second suite prior to the coming in force of this Administrative Order.
- Second units that are either existing or under construction prior to the coming in force of this Administrative Order; or
- Can I use my second unit as a short-term rental (i.e. Airbnb)?
No. Units built under this new program must be used as long-term housing. If you convert it to a short-term rental within five years of construction completion, you will need to repay the full grant amount.
- Can a contractor apply for the grant on my behalf?
No. Only the property owner(s) can apply, but a contractor can assist with providing required documents.
- Can I convert an existing structure, like a garage, into a backyard suite?
Yes, as long as it meets size and zoning regulations, and complies with building and plumbing codes and the appropriate permits are obtained.
- Is there other funding available?
You may also be eligible for the Province of Nova Scotia’s Secondary and Backyard Suite Incentive Program for additional financial support.
Other municipal sponsored programs available.
If you meet the eligibility criteria outlined above, don't wait—take the next step toward building your secondary unit and apply for the grants today!