The City of Carrollton’s Single Family Demolition/Rebuild Incentive is part of the Neighborhood IMPACT initiative. The program objective is to promote the removal and replacement of aging single-family housing stock in Neighborhood Empowerment Zones. This program provides incentives to any homeowner or homebuilder who demolishes an existing single-family home in an Empowerment Zone and rebuilds a new home on the same lot within 24 months.
A homeowner or homebuilder may be eligible for assistance under this program if they meet all of the following conditions:
- The applicant is a United States citizen or legal resident
- The home is a single-family detached dwelling located in the city of Carrollton
- The home is located within a Neighborhood Empowerment Zone. A map of the Neighborhood Empowerment Zones is available here.
- The home is located on a legally platted lot of record that is zoned to allow single-family detached homes
- The applicant will own and occupy the new home as his or her principal residence on a year-round basis
- A homebuilder may qualify for this program, provided that the rebuild incentive will be paid to the first owner occupant of the newly constructed house.
- All payments for City-provided utilities and all property taxes are current for the property.
- The applicant must complete an application and follow the application process.
- The property must not be under enforcement action of the Property Standards Board.
- The property must not be in foreclosure proceedings.
- The applicant must complete demolition within twelve (12) months of the date of City Council approval of the grant.
- Reconstruction of the new house must be completed within twenty-four (24) months of the date of City Council approval of the grant.
An incentive agreement must be approved by the Carrollton City Council prior to the start of any demolition work.
Participation in the program is subject to the following criteria:
- Demolition incentives will be paid on an invoice-reimbursable basis upon completion of the demolition
- Demolition of the existing house and completion of a new house must occur within 24 months of City Council approval of the incentive agreement
- Rebuild incentives will be paid in a lump sum upon approval of the final inspection by the City of Carrollton
A qualified applicant will be eligible for the following incentives from the City of Carrollton for the demolition and reconstruction of a single-family structure:
- The applicant will be reimbursed up to 100% of the cost of demolition of the existing structure as determined by the City Council on a case-by-case basis.
- For new construction value over $300,000 (excluding land value), the incentive will be a single payment equal to a 100% abatement of municipal ad valorem property taxes times 10
- For new construction value of less than $300,000 (excluding land value), the incentive will be a single payment equal to a 100% abatement of municipal ad valorem property taxes times 7
- A higher reconstruction incentive may be applied on a lot where a house was demolished without participation in the Property Demolition Grant Program, as determined by City Council on a case-by-case basis.
- Construction values will be determined at the time of building permit issuance
- New construction value is the difference between the value of the new construction and the value of the existing house, as such existing value is determined by the appraisal district for the year in which the incentive agreement is approved by the City Council
- All construction permit fees required by the City of Carrollton, including demolition fees, directly related to the demolition and rebuild will be waived
Example 1: $350,000 (new value, excluding land value) and $50,000 (existing value, excluding land value)
$350,000 – $50,000 = $300,000
$300,000 – 20% = $240,000 taxable homestead value
$240,000 x $0.612875/$100 valuation = $1,471 municipal ad valorem tax
$1,471 x 10 = $14,710 total lump sum cash incentive + applicable permit fee waivers
Example 2: $250,000 (new value, excluding land value) and $50,000 (existing value, excluding land value)
$250,000 – $50,000 = $200,000
$200,000 – 20% = $160,000 taxable homestead value
$160,000 x $0.612875/$100 valuation = $981 municipal ad valorem tax
$981 x 7 = $6,867 total lump sum cash incentive + applicable permit fee waivers
- An application for incentive must be submitted in approved format to the Environmental Services Department by the land owner. If the property has multiple owners, all owners must sign the application. Staff will verify ownership information.
- The owner(s) shall at the time the application is submitted include three estimates detailing the demolition costs as well as a project timeline.
- The application shall describe the owner’s plans for the property after the demolition takes place.
- Project review of each application is required by city staff including appropriate comments and recommendations for changes prior to submission to the City Council Re- Development Sub-Committee.
- All applications will be reviewed by the Re-Development Sub-Committee. Any modifications to the application will be made prior to forwarding the application to the full City Council with a recommendation for approval or denial.
- City Council will review the recommendation of the Re-Development Sub-Committee and vote to either approve or deny the grant application.
- The grant incentive will consist of cash payment payable upon successful completion of the project as outlined in an incentive agreement to be entered into between the City and the owner of the property.
* Applications are determined on a case-by-case approach. Exceptions to this policy may be approved by the Re-Development Sub-Committee.
For assistance in applying, and/or to review program details and guidelines, please contact the Neighborhood Partnership Office at email@example.com or (972) 466-4299. A copy of the application is available here.