Trevor Ford says it has become harder to find tenants for his rental homes. ((CBC))

Only a few homeowners have applied for a Calgary program that offers up to $25,000 for the creation or upgrade of secondary suites.

The city set aside $2 million for the pilot program, which would see homeowners recover 70 per cent of their costs in a bid to create greater density and affordable housing in Calgary.

Only 20 people have applied for the funding so far. To attract interest, the city is holding information sessions on the program.

"[Increasing] the number of legal secondary suites is going to increase the number of housing options and choices for Calgarians," said Gail Sokolan, the city's affordable housing co-ordinator.

Another goal is to make existing apartments, including an estimated 1,500 illegal suites, safer, she said.

"It is an opportunity for us to promote or to encourage those people to bring those suites up to conformity."

Information sessions Sept. 29, 6:30 to 8:30 p.m. Hillhurst-Sunnyside Community Association 1320 5th Ave. NW.

Oct. 1, 6:30 to 8:30 p.m. Village Square Library 2623 56th St. NE.

Oct. 3. 9:30 a.m. to noon Acadia Community Association 240 90th Ave. SE.

The money does come with restrictions: The homeowner has to live in the home and the new suite has to be available to rent for five years at no more than the average market rental price.

City inspectors will randomly check on the progress of the construction, but the city isn't hiring additional staff to keep an eye on the program. And if the suite doesn't rent, there are no repercussions.

Ald. Ric McIver said he voted against the program when it came before council because he believes subsidized housing is a provincial and federal responsibility.

"I think it is too ripe for abuse, too ripe for mistakes, too ripe for not enough [tracking of] where the dollars go," he said. "I don't want to be chasing Calgarians down as the City of Calgary and suing them to get half of the renovation [money] back."

More empty suites

Calgary's vacancy rate has more than doubled in the last year, jumping to 4.3 per cent in April from two per cent a year earlier, according to the Canadian Mortgage and Housing Corp. But the rent for a two-bedroom has remained steady at about $1,100.

Trevor Ford, a landlord who owns several rental homes, has noticed it is getting tougher finding renters. He has dropped his rental prices by up to $300 and is throwing in free utilities.

Ford supports the idea of increased density in neighbourhoods closer to the inner city and said there is a need for affordable housing.

While he was unaware of the details of the city's program, he generally likes the idea.

"I think if you need some basic renovations like bathroom renovations, window renovations, structural renovations to make the suite safer and better to rent, I think it's a good idea."