Property Incentives - City Owned Lot Program
To provide affordable housing, and to improve the housing stock, the City of Waco and City Council have joined together and approved the sale of certain City owned lots for future homeowners who intend to build a home and to occupy the property as their primary residence.
Steps for Builders Purchasing a City Owned Lot:
- Pick out the lot you wish to purchase.Check with the City to make sure that lot is still available.
- Give a written request stating the lot address, legal description and amount you are offering for the lot. (Must be the higher of Court Costs or $100.00).
- Complete and submit the Conflict of Interest Questionnaire.
- You must be purchasing the lot to build a single family dwelling, (or to rehabilitate an existing structure), to be sold for homestead purposes. This program is not for investment purposes. The home must be owner occupied for families with income of 80% or below for Waco if the property is solely owned by the City of Waco.
- If you are a new builder or not established in the Waco Market, you must furnish the City of Waco with financial information, proof of the ability to finance construction (letter from bank, etc.)
- You must furnish pictures of prior homes built with addresses. (If you are new to the Lot Sale Program.)
- You must provide acceptable plans, specifications, and preliminary site plan. (Or a listing of what type of rehabilitation will be done to an existing structure).
- You must have the home completed within 24 months of the transfer of the property. If the house is not completed in the allocated time, the property may revert back to the City.
- It is your responsibility to determine if utilities are available to the property.
- It is your responsibility to determine if the property needs platting.
- It is your responsibility to determine if the zoning is correct.
- It is your responsibility to determine if the property is in a flood zone. The City of Waco cannot guarantee that the property is NOT in a flood zone.
- It is your responsibility to check the set-back lines to make sure your house will fit on the lot.
- It is your responsibility to check any easements on the property. It is your responsibility to pay all closing costs associated with the purchase of the lot, including but not limited to the title policy, recording fees, attorney fees, survey fees, platting fees, closing fees, etc.
- The lot is being sold as is.
- Waco loan committee must approve the lot purchase.
- The county commissioners and the school district must approve the lot purchase, if the property was aquired through tax foreclosure.
NOTE: The City of Waco will order title work and make every effort to allow you to purchase the lot of your choice. There will be times however, that due to one circumstance or another, the lot you request to purchase, will not be available. Some of the problems encountered could be: non-approval from loan committee, county commissioners, or school, in-curable title problems, easements through the property, deed restrictions, etc.
You must provide all documentation to be submitted to Loan committee within 60 days of your written request or the lot will be returned to the available lot list.
After your request has been approved by all taxing authorities, all title issues have been addressed and the lot is ready to be closed, you will have up to 30 days to close on the lot or the lot will be returned to the available lot list.
Steps for Individuals Purchasing a City Owned Lots:
- Pick out the lot you wish to purchase.
- Check with the City to make sure that lot is still available.
- Complete and submit the Conflict of Interest Questionnaire p Give a written request stating the lot address, legal description and amount you are offering for the lot. (Must be the higher of Court Costs or $100.00). Be sure your current address and phone number are included with your letter so we can contact you.
You must be purchasing the lot to build your homestead. This program is not for investment purposes. The home must be owner occupied. You must not have income above 80% of the median income by family size, if you are purchasing City of Waco, solely owned property. You must provide proof of income. If you are purchasing City of Waco Trustee property, income is not a factor.- You must provide an acceptable take-out letter or commitment from your lender. (Or proof of funds to pay for the construction / moving of the home.)
- You must provide acceptable plans, specifications, and preliminary site plan from your builder. (If moving a home onto the site, pictures of the home must be submitted for approval. These pictures must include the front, both sides and the rear.)
- You must begin building within 90 days of the transfer of the property.
- You must have the home completed within 9 months of the transfer of the property. If the house is not completed in the allocated time, the property may revert back to the City.
- It is your responsibility to determine if utilities are available to the property.
- It is your responsibility to determine if the property needs platting.
- It is your responsibility to determine if the zoning is correct.
- It is your responsibility to determine if the property is in a flood zone. The City of Waco cannot guarantee that the property is NOT in a flood zone.
- It is your responsibility to check the set-back lines to make sure your house will fit on the lot.
- It is your responsibility to check any easements on the property.
- It is your responsibility to pay all closing costs associated with the purchase of the lot, including but not limited to the title policy, recording fees, attorney fees, survey fees, platting fees, closing fees, etc.
- The lot is being sold as is.
- Waco Loan Committee must approve the lot purchase.
- The County Commissioners and Waco Independent School District must approve the lot purchase. This may take some time due to scheduling of the agendas. Turnaround is typically 2-3 months.
NOTE: The City of Waco will order title work and make every effort to allow you to purchase the lot of your choice. There will be times however, that due to one circumstance or another, the lot you request to purchase, will not be available. Some of the problems encountered could be non-approval from Loan Committee, County Commissioners, or WISD; in-curable title problems, easements through the property, deed restrictions, etc.
You must provide all documentation to be submitted to loan committee within 60 days of your written request or the lot will be returned to the available lot list.
After your request has been approved by all taxing authorities, all title issues have been addressed and the lot is ready to be closed, you will have up to 30 days to close on the lot or the lot will be returned to the available lot list.
Property Incentives - Infill Development Program
To provide incentives for builders and homebuyers to purchase privately held residential infill lots in the Infill Development Area of the city and build quality homes to be used as a primary residence the City of Waco and City Council have joined together and approved the Infill Development Program.
(This webpage does not contain all the terms of Infill Development.)
Criteria :
- No income cap
- Lots must be in the Infill Development Area
- Must build home to be primary residence
- House must be completed within 24 months
- Waiver of City liens
- Waiver of permit and tap fees
Additional Requirements:
- The Builder will sign the Infill Development Area Agreement for Waiver of City Liens, Construction Permit Fees and Tap Fees
- The Builder will provide the City with a copy of Title Commitment
- The Builder will provide site plans and elevations to the City for the purpose of determining compatibility of the
- proposed structure with the neighborhood
- The Builder will provide an affidavit signed by the homebuyer certifying that the homebuyer is purchasing the residence for his/her primary residence homestead. The homebuyer's settlement statement will be attached to the affidavit.
Property Incentives - Demolition Grant Program
Note: This web page does not contain all the terms of the Demolition Grant Program
Purpose :
Provide incentives to attract builders ( non profits/for profits) & homebuyers to purchase green-tagged homes (privately owned, held in trust by city or city owned) for primary residences of homeowners (homestead – no rental).
Provide incentives to attract builders (non profits/for profits) & homebuyers to purchase privately owned red-tagged homes (builders/homebuyers would purchase home from existing red tagged owner) for primary residences of homeowners (homestead – no rental).
- Up to $3,500.00 demo grant per structure for City owned green tagged homes or up to $3,500.00 per structure for privately owned red or green tagged structures
- Waive disposal fees
- Release any City labor liens
- Waive construction related fees on the construction of homes
- Must be built within 12 months from the date of transfer of title
- House plans must be approved by Planning Department
- No income cap
Property Incentives - 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 webpage 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
