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Incentive Programs

City-Owned Lot Program
Infill Development Program
Demolition Grant Program

Tax Abatement Program
Interim Construction

City Owned Lot Program

Purpose:

To provide affordable housing through the sale of selected City-owned lots for future homeowners intending to build a home and occupy it as their primary residence.

Benefits:

  • City-owned lots can be purchased from the City of Waco for the higher of court costs or $100.00.
  • City of Waco Trustee properties can be purchased to build a homestead regardless of income.

Eligibility Criteria:

  • Construction on the home must begin within 90 days of the transfer of the property, and must be finished within 9 months
  • The home must be owner-occupied (not for investment purposes)
  • Proof of funding to construct the home must be provided, along with acceptable plans, specifications, and a preliminary site plan from a builder.
  • The purchase of non-trustee properties owned by the City is subject to income limits (below 80% of the area median income, adjusted by family size)

More terms may apply to this program.  For more information, please contact us at 750-5656.

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Infill Development Program

Purpose:

To provide incentives for builders and homebuyers to purchase privately held residential infill lots to build quality homes within the City of Waco to be used as a primary residence.

Benefits:

  • No income cap
  • Waiver of City liens as well as permit and tap fees

Eligibility Criteria:

  • Lots must be located within the Infill Development Area
  • Construction on the home must be completed within 24 months
  • The completed home must be owner-occupied (an affidavit must be signed by the homeowner)
  • The builder must provide a site plan and elevations for the purpose of determining compatibility of the structure with the existing neighborhood
More terms may apply to this program.  For more information, please contact us at 750-5656.

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Demolition Grant Program

Purpose:

To provide incentives for builders and homebuyers seeking to purchase existing homes deemed uninhabitable (green- or red-tagged) to replace them with quality homes to be used as a primary residence.

Benefits:

  • Up to a $3,500 grant (per structure) for the demolition of green-tagged structures and privately-owned red-tagged structures
  • Waiver of City liens and disposal fees as well as construction-related fees
  • No income cap

Eligibility Criteria:

  • Construction of the home must be completed within 12 months
  • The completed home must be owner-occupied (an affidavit must be signed by the homeowner)
  • House plans must be approved by the Planning Department

More terms may apply to this program.  For more information, please contact us at 750-5656.

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Interim Construction Program

            Purpose:

The interim construction program is designed to provide low-interest short-term loans to builders for the construction of single family homes for low-income homebuyers to be used as their primary residence.

            Benefits:

  • Short-term construction loan (6 months) with an interest rate of 3% or less

Eligibility Criteria:

  • Property must be located within the city limits of Waco, and NOT within a FEMA-designated 100-year flood plain
  • Builders must be pre-approved by the City of Waco, and must not have any City liens against them
  • Homebuyers must meet income criteria (80% or below the median income for the City of Waco)
  • Plans and specifications must be approved by the City
  • Loan amounts are limited to 100% of cost, 110% of appraised value, 100% of Take Out Letter(s), or $75,000 (whichever is lowest)

More terms may apply to this program.  For more information, please contact us at 750-5656.

Please note: The availability of all programs is subject to funding availability

Tax Abatement Program

Purpose:

To provide property tax incentives for future homeowners intending to build their homestead, purchase an existing home for their primary residence, or repair their existing primary residence within the City of Waco Reinvestment Zone (RZ).

Benefits:

  • Seven (7) year abatement of property taxes due for properties valued at $90,000 and above (new construction) and improvements valued at $30,000 or above (rehabilitation)
  • No income cap

Eligibility Criteria:

  • Property must be the primary residence of the owner, and must be a single family residence
  • Property cannot be in tax delinquent status
  • Application must be approved by City Council prior to issuing the building permit
  • Residential improvements or plans must be approved by the Planning Department
  • A filing fee of $150.00 must accompany the completed application

More terms may apply to this program.  For more information, please contact us at 750-5656.

 

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