Tax Abatement Program
To provide affordable housing the City of Waco and City Council have joined together and approved the Tax Abatement Program for future homeowners who intend to build a home, buy a home, or make repairs to their existing home, and to occupy the property as their primary residence.
This web page does not contain all the terms of Tax Abatement
Requirements:
- Must own property & occupy the property as his/her primary residence or sell to a person who will occupy property as his/her primary residence
- Property cannot be tax delinquent
- New constructed homes must sell (arms length) or appraise for minimum of $90,000
Property must be located in the designated reinvestment zone
- Property may only be used for single-family residences – duplexes/apts. and other multi-family – don't qualify
- Applicant cannot have any City liens filed against any property owned by applicant
- Abatement only for residential improvements & property's base year value cannot exceed $200,000
- Property must conform to city's zoning ordinance, fully meet neighborhood compatibly design standards along and be inspected by city at completion of improvements for full compliance with costs & design criteria
- Property has not received tax abatement before & council must approve assignment of any tax abatement
- Applicant has 1 yr. to complete terms of agreement
- Applicant must apply, obtain approval from City Council and execute Tax Abatement agreement before any building permits are issued for the subject property and before any improvements are made to the subject property.
Preliminary Steps:
- $150.00 non-refundable application fee & property must be located in the RZ
- Applicant will provide survey map showing the precise location of property & complete legal description
- All information on application will be reviewed and additional information may be required
- Application reviewed by City staff
Consideration of application:
- Must be approved by Waco City Council.
Certification/Review:
- On or before 12/31 of the year, which establishes the “Base Year Value” for the agreement, the owner will submit a current MCAD statement that provides an appraisal valuation of the property. After construction is complete, owner will provide satisfactory written evidence of actual costs & value of improvements along with a current MCAD appraisal (when available).
Other Requirements:
- No Income Cap
- General Fund
Newly constructed homes must either sell or appraise for $90,000 & rehabilitated homes must certify a minimum of $30,000 actual costs for the improvements.
- Property owner must certify annually in writing that it is in compliance with the agreement.
- City will inspect property after completion of construction & ensure it meets all requirements and then inform MCAD as to whether property meets the abatement requirements
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