Saskatchewan extending secondary suite construction initiative into 2027

The Government of Saskatchewan is extending a grant program designed to help offset the costs of building secondary suites into 2027.

The Saskatchewan Secondary Suite Initiative (SSI), which was first introduced in 2023, provides up to 35 per cent of the total costs to construct a new suite at the owner’s primary residence, up to a limit of $35,000. The province announced a one-year extension of the program on Tuesday, meaning the final date to incur eligible construction costs is set for March 31, 2027.

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Jim Reiter, Saskatchewan’s deputy premier and finance minister, said the program has been “incredibly successful,” with nearly 1,000 new suites added since it was first launched.

“I am pleased to extend this program for another year because we know the most effective way to address the rising cost of rent is to increase supply, and that is exactly what the SSI has been doing,” Reiter said in a statement.

To qualify, the suites must be a new, separate unit located on the same property as the owner’s primary residence. The program covers basement suites, garden suites, laneway homes or garage suites, but they must include a full kitchen, full bathroom and a separate entrance, while meeting all applicable codes and standards. Renovations to existing suites are not included under the initiative.

Stu Niebergall, president and CEO of the Regina & Region Home Builders’ Association, called the program “one of the most effective tools we have seen to grow Saskatchewan’s housing supply.”

He said the program is helping homeowners construct high-quality rental suites, leading to more options and lower prices across Saskatchewan.

“Extending this program is the right move because it gives families more choice and strengthens our housing market when it matters most,” Niebergall said, quoted in a government statement.

Nicole Burgess, CEO of the Saskatoon & Region Home Builders’ Association, praised the initiative, calling it a “made-in-Saskatchewan” approach.

“Not only does it increase much-needed rental supply, it also supports homeownership by helping families invest in their homes and manage rising housing costs. SSI supports both sides of the housing equation and extending it will continue to deliver real results for Saskatchewan families,” Burgess said in a statement.

The $35,000 maximum hasn’t fluctuated since the program’s inception. But, Burgess explained, even with the rising cost of living, increasing that figure wouldn’t necessarily make a difference for the program’s typical participant.

“The average rebate that has been issued through the program has been in and around $26,000,” she said.

Standing beside Saskatoon Willowgrove MLA Ken Cheveldayoff, Nicole Burgess, CEO of the Saskatoon and Region Home Builders Association, said a lot of the new units have been built in established neighbourhoods within both Regina and Saskatoon, creating “gentle” density increases. (Marija Robinson/650 CKOM)

Saskatoon seeing more benefits than Regina

Up until now, a majority of the units added have been concentrated in Saskatoon, according to Burgess.

Saskatoon saw roughly 350 new suites built in 2023, when the program was first launched. Last year, that number jumped to over 860.

“It’s more than doubled in the duration of the program,” Burgess said.

But, Regina’s numbers don’t match those seen in Saskatoon.

“I believe it’s a lot less, and the reason I say it’s a lot less is Saskatoon had more progressive zoning rules to allow for secondary suites… so it did really help support the program,” Burgess.

Regina’s rules, though, are moving in a similar direction, Burgess said, and “will likely be increasing their supply as well.”

More information on the program and its application process can be found on the Government of Saskatchewan’s website.