Halifax Expands Funding Program for Secondary Housing Units

The Halifax Regional Municipality has broadened the eligibility criteria for its Secondary Units Incentive Program, designed to assist property owners in constructing secondary housing units. This initiative aims to foster small-scale housing solutions, including backyard tiny homes and basement apartments, through non-repayable grants.

Previously, eligibility was restricted to owners of primary residences who could apply for funding for only one secondary unit. The recent changes now permit non-profit organizations and housing cooperatives to apply, allowing for up to two units per dwelling to be eligible for financial support, contingent upon land-use regulations.

Extended Application Deadline and Funding Goals

The municipality has also extended the application deadline by four months, now set for October 11, 2026. This change is part of a broader goal to issue 250 new building permits by that date, with a construction completion target of April 1, 2027.

These adjustments come in response to a municipal staff report highlighting lower-than-anticipated participation under the previous program rules. As of December 15, 2025, only 91 applications had been submitted, with 69 approvals and 22 applications either in progress or awaiting approval. Of the $1.5 million allocated for the program in the 2025-26 budget, only $412,000 has been spent thus far.

Under the incentive program, eligible residents and organizations may receive up to $13,000 per unit to help cover costs related to water and wastewater installation. It is important to note that any grants received must be repaid if the units are utilized as short-term rentals within five years of their construction.

The expanded program reflects Halifax’s commitment to addressing housing shortages and promoting sustainable development within the region. With these new measures, officials hope to encourage greater participation from a wider array of applicants, ultimately contributing to the availability of affordable housing options.