Services by HCD

Overview

The City of Waco Housing & Community Development (HCD) Department administers numerous programs with varying levels of help and eligibility restrictions.

Down Payment Assistance

Homebuyer Down Payment Assistance program helps eligible residents overcome upfront costs and move closer to homeownership. Learn about available assistance, eligibility requirements, and how to apply. This resource makes it easier to understand how the City supports affordable homeownership in Waco.

Home Rehabilitation

The Home Rehabilitation program offers no-interest loans of up to $50,000 to help eligible low- and moderate-income homeowners repair and improve their homes. It also addresses lead-based paint hazards and supports safer, healthier living conditions for long-time residents in the community. Explore eligibility, income guidelines, and how to apply to preserve and enhance your home in Waco.

Residential Tax Abatement

Residential Tax Abatement Program helps encourage high-quality housing investment and improvements in targeted neighborhoods by offering property tax relief and potential fee or lien waivers to qualifying homeowners and developers. Participants can receive a tax break on the increased value of their home after improvements, making renovation or construction more affordable and supporting community revitalization efforts in Waco. Learn about eligibility, application steps, and the potential benefits of investing in your property while contributing to stronger neighborhoods.

Down Payment Assistance

Financial assistance is available in the form of a loan to help cover down payment and closing costs. Participants can receive up to $25,000 in down payment and closing cost assistance through our DPA program.

Who is Eligible?

  • First-time homebuyer
  • Household income at or below 80%of the area median income (AMI)
  • Homebuyers who qualify for a first-lien mortgage
  • Mortgage terms that do not exceed 30 years
  • Borrower must invest at least $750 in the home purchase
  • Property must be owner-occupied (not for investment purposes)

The 2024 HUD Income Guideline as of 5/01/2024.

More Information

Family Size 1 2 3 4 5 6 7 8
80% AMI $45,550 $52,200 $58,600 $65,100 $70,300 $75,550 $80,750  $85,950

How to Apply for Assistance

Register your Account

When you access the Portal for the first time, you’ll need to Register your account by clicking on the Register link. The registration process will create a username (which is your email address) and password that will be used for future logins. The email address you choose will also be used for system emails/notifications, so it is recommended to use your work email address. For security purposes, the system will validate that you own the registered email address by sending an email with a validation link. 

Note:  If you do not receive the system email within 2 minutes, check your spam or bulk mail folder.

Logging In

Once your account has been registered, you may login by entering the email address and password used during registration.

Begin the Application
Once you’re logged in, select the program you’re interested in applying for by clicking the blue link titled Start Application.

Multiple Users
Participants may provide access to multiple persons to edit and update the application by clicking on the View Users icon and clicking Add a User.

Assistance
You may call (254) 750-5656 or email hcd@wacotx.gov for assistance.

Individual Development Account (IDA) Program

The IDA program allows lower-income families to save money for the down payment on a home. An IDA is a matched savings account in which participants deposit money. For every dollar of earned income that families save, two dollars are added to their account with a maximum $2,000 match. The participants’ savings goal is $1000; with the match, they will complete the program with $3000 toward a down payment on a home.

To learn more about the IDA program, please contact Grassroots Community Development at (254) 235-7358.

Homebuyer Education

Our partners are available to help you navigate the path to homeownership.

Grassroots Community Development
1624 Colcord
Waco, TX 76707
(254) 235-7358

NeighborWorks Waco
922 Franklin Ave
Waco, TX 76701
(254) 752-1647

Home Rehabilitation

Help is available in the form of a no-interest loan to help cover repair costs of low- and moderate-income homeowners in the City of Waco. Qualified participants can receive up to a $50,000 no-interest loan.

Lead-Based Paint Abatement

The Home Rehabilitation program will also address lead-based paint hazards. For Home Rehabilitation work on homes found to contain lead-based paint, corrective actions will be taken in accordance with HUD Regulation by certified workers using approved methods.

Lead-Based Paint Safety
Homes built before 1978 may contain lead-based paint, which can pose serious health risks—especially to young children and pregnant women. Exposure often comes from peeling paint or lead dust around windows, doors, and floors. If you suspect lead in your home, do not attempt removal yourself; professional assistance may be available through the City of Waco’s Home Rehabilitation program.

Who is Eligible?

  • Homeowners who have proof of ownership or have a clear title to the home within Waco city limits
  • Participants who have occupied the home minimum of two years
  • Household income at or below 80% of the area median income (AMI)
  • The property is your primary residence
  • Property taxes are current and paid in full
  • Insured home/property

More terms may apply to this program. For more information, please call (254) 750-5656 or email HCD@wacotx.gov.

Repayment Schedule

Eligible clients over the age of 62 will not have loan repayment requirements. The schedule below applies to clients 18 to 61 years old.

Median Income Level Repayment Percentage Deferred Forgivable Loan Percentage
50% or below 0% 100%
50% ≥ 60% 30% 70%
60% ≥ 70% 40% 60%
70% ≥ 80% 50% 50%

How to Apply for Assistance

Register your Account

When you access the Portal for the first time, you’ll need to Register your account by clicking on the Register link. The registration process will create a username (which is your email address) and password that will be used for future logins. The email address you choose will also be used for system emails/notifications, so it is recommended to use your work email address. For security purposes, the system will validate that you own the registered email address by sending an email with a validation link.

Note:  If you do not receive the system email within 2 minutes, check your spam or bulk mail folder.

Logging In

Once your account has been registered, you may login by entering the email address and password used during registration.

Begin the Application
Once you’re logged in, select the program you’re interested in applying for by clicking the blue link titled Start Application.

Multiple Users
Participants may provide access to multiple persons to edit and update the application by clicking on the View Users icon and clicking Add a User.

Assistance
You may call (254) 750-5656 or email hcd@wacotx.gov for assistance.

Income Guideline

80% Median Family Income
Family Size Income Limit
1 $49,800
2 $56,900
3 $64,000
4 $71,100
5 $76,800
6 $82,500
7 $88,200
8 $93,900
50% Median Family Income
Family Size Income Limit
1 $31,100
2 $35,500
3 $40,000
4 $44,450
5 $48,050
6 $51,550
7 $55,100
8 $58,650

The area median income limits are determined by the U.S. Department of Housing & Urban Development as of May 1, 2025.

Residential Tax Abatement

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)
  • 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

Process

  • Submit application, $175 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 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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