Single Family Demolition/Rebuild Incentive

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Program Objectives
The City of Carrollton’s demolition/rebuild program 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.



Eligibility
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 Nighborhood 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 An incentive agreement must be approved by the Carrollton City Council prior to the start of any demolition work

 

Program Criteria
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

 

Incentive
A qualified applicant will be eligible for the following incentives from the City of Carrollton:

  • The applicant will be reimbursed up to $10,000 for the demolition of the existing structure
  • 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
  • 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

 

Incentive Examples
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


Application Process
To apply please contact the Neighborhood Partnership Office at communitydevelopment@cityofcarrollton.com or (972) 466-4299.  A copy of the application is a available here.