Residential Tax Abatement Program (RTA)

Promote high-quality residential development and the ongoing improvements to housing stock to enhance the quality of life for Waco citizens in conjunction with improved housing options, opportunities, and conditions. Incentivize improvements through City of Waco property tax abatement and potentially fee or lien waivers.

Eligibility Criteria

  • Property must be owned by the applicant or be the developer of an affordable or workforce rental housing unit.
  • Property must be a single-family residence, duplex, or townhome within the RTA Reinvestment Zone 1 (RTA1)(PDF, 345KB)
  • No permits may exist or improvements already made prior to approval for work proposed in the application
  • Property taxes and water accounts for the property and all properties owned by applicant must be in good standing
  • Liens assessed by the City of Waco on the property and all properties owned by applicant must be resolved
  • Maximum property value base year $200,000 and value upon completion $350,000
  • Property may not have previously received a tax abatement
  • Qualify for and adhere to RTA Guidelines & Policy Statement(PDF, 877KB)

Process

  • Submit application, $150 fee (check or money order), and required documents.
  • City staff review project to ensure it meets housing and program guidelines and if feasible and practical and would be a benefit to the land in the RTA1 zone and to the City after the term of the tax abatement agreement has expired.
  • 30-Day Public Notice then City Council review for approval
  • RTA program is governed by Texas Property Redevelopment and Tax Abatement Act and the City of Waco RTA Guidelines & Policy Statement. Nothing in the process shall be construed as an obligation by the City of Waco to approve any tax abatement application.

Residential Tax Abatement Application

FAQ's

I live outside the City of Waco can I apply?
No, this program is specifically for the RTA1 zone(PDF, 345KB) within the City of Waco only.

I started the project already, can I apply for the program?
Yes, however, none of the work completed and permits for work to complete may be included in the application.

I have an apartment unit; do I qualify?
No, only single-family residence, duplex, or townhome property.

What is the tax incentive?
100% of the increased taxable value, due to at least $30,000 in improvements, expansion or modernization of existing single-family residence, $50,000 on existing duplex or townhouse, or at least $ 90,000 for new construction of single family residence, rental duplex and townhouse (sales price or appraised value), over the base year value for a period of five (5) years based on a sliding scale. The first year of city taxes is abated at 50% and progressing to 10% in the fifth year.

What are the fee or lien waivers?
If approved, the City may waive fees associated with the project and if determined, may waive property liens. Approvals are on a case-by-case basis.

How long does the approval take?
Plan on approximately 90 days from submission for the review, approval, and agreement execution.

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