HOME IMPROVEMENT INCENTIVE PROGRAM
The City of Richardson is proud to offer the Home Improvement Incentive Program. This unique and innovative program is designed to provide an economic incentive to homeowners who substantially reinvest in their home.
The purpose of the program is to:
- Encourage reinvestment in residential neighborhoods
- Help distinguish Richardson from surrounding communities by providing an economic incentive to prospective buyers
- Positively affect the value of the City's housing stock
- Lower the financial hurdle for homeowners to make significant improvements to their homes
- Demonstrate a strong commitment by the City to reinvest in residential neighborhoods
How the program works…
Eligibility
All homeowners in single-family zoned areas are eligible to participate, except those who are delinquent in taxes or other fees.
To qualify, an improvement project involving the reconstruction or remodeling of a single family home must cost at least $20,000 and be completed within 24 months of project approval.
Application & Incentive Contract
To participate, a homeowner will be required to submit an application to the Neighborhood Services Department prior to construction beginning, provide a cost estimate for the improvement project, consent to periodic inspections during construction and verify final construction costs.
If an application is approved, the homeowner will be required to execute an economic development agreement with the city prepared and approved by the city attorney.
Incentive Payment
A one-time incentive equal to 10 times the amount of the increase in city taxes will be paid to the homeowner based on the property's pre-construction and post-construction appraised value. The appraisal district will determine the property's certified value.
The incentive will be paid to the homeowner pursuant to the economic development agreement on April 1 of the first full calendar year subsequent to completion of the approved project.
Example
Assume that a home improvement project commences in January 2010 and is completed in June 2010. Further assume that the 2011 property taxes increase $300 above the 2010 property taxes as a result of the increase in the taxable value of the improvements. The total incentive would be $3,000 and would be paid on April 1, 2012.
Note: Your incentive payment may result in federal income tax consequences. You should consult your own tax advisor. All or a portion of your incentive payment may constitute taxable income regardless of whether you receive a Form 1099-MISC from the City. If the amount of your incentive payment is $600 or more, you may receive Internal Revenue Service Form 1099-MISC form the City.