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CITY OF FARMERS BRANCH
RESIDENTIAL DEMOLITION/REBUILD
INCENTIVE PROGRAM
APPLICATION AND POLICY
This application is for the Residential Demolition/Rebuild Incentive Program and is subject to the
attached policy. By submitting this application the undersigned acknowledges that such person
has read and agrees to comply with the policy
.
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Section A: Applicant Information
Applicant’s Full Name
Spouse or Co-Owner
Current Mailing Address
City State Zip Code
Phone Cell Fax
E-mail
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For additional information regarding this application or the Residential Incentives Program, please
contact Allison Cook, Economic Development Manager at 972.919.2507.
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A person’s home email address is confidential and may not be disclosed to the public by the city unless a citizen consents. By
submission of this application you consent to the public disclosure of your email address unless requested otherwise in writing.
Application Number D/R- ______________
Date Received _______________
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Section B: New Home Information
Address of New Home (the structure to be demolished and to be replaced with new residence)
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City State Zip Code
Estimated Value of new structure (value of improvement only, not inclusive of land) and Sq Ft
Applicant shall include with the submittal of this application a copy of each of the following:
Valid Texas driver’s license or Texas I.D. card for identification verification
Completed W-9 Form, including Social Security Number or taxpayer ID number,
for tax purposes
Elevations and floor plan of new home
Photo of current improvement
Permission for City to use photo/video material of finished home for marketing
purposes
Submit floor plan of new home via email to Allison Cook and/or Stephanie Hall:
Allison.cook@farmersbranchtx.gov
Stephanie.hall@farmersbranchtx.gov
Section C: Incentive Selection
There are four (4) categories of residential structures that qualify for the program:
(1) Residential structures (improvements only) with an assessed value of Sixty-Five Thousand
Dollars ($65,000.00) or less. The City will provide: (i) a demolition incentive grant in the
amount of Thirty Thousand Dollars ($30,000.00), and (ii) three (3) annual consecutive
economic development incentive grants for residential structures to be demolished with an
assessed value of Sixty-Five Thousand Dollars ($65,000.00) or less.
(2) Residential structures (improvements only) with an assessed value of Sixty-Five Thousand
and One Dollar ($65,001.00) up to One Hundred Thousand Dollars ($100,000.00). The City will
provide: (i) a demolition incentive grant in the amount of Twenty Thousand Dollars
($20,000.00), and (ii) four (4) annual consecutive economic development incentive grants
for residential structures to be demolished with an assessed value of Sixty-Five Thousand and
One Dollar ($65,001.00) up to One Hundred Thousand Dollars ($100,000.00).
(3) Residential structures (improvements only) with an assessed value of One Hundred
Thousand and One Dollar ($100,001.00) up to One Hundred Fifty Thousand Dollars
($150,000.00). The City will provide: (i) a demolition incentive grant in the amount of Ten
Thousand Dollars ($10,000.00), and (ii) five (5) annual consecutive economic development
incentive grants for residential structures to be demolished with an assessed value of One
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If address for the residence for the demolition/rebuild program is different from the applicant’s address in Section A , above.
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Hundred Thousand and One Dollar ($100,001.00) up to One Hundred Fifty Thousand Dollars
($150,000.00).
(4) Residential structures (improvements only) with an assessed value of more than One
Hundred Fifty Thousand Dollars ($150,000.00). The City will provide seven (7) annual
consecutive economic development incentive grants for residential structures to be
demolished with an assessed value of more than One Hundred Fifty Thousand Dollars.
Each annual incentive shall be equal to one hundred percent (100%) of the difference between
the City property taxes assessed and paid for the new improvements (the new residential structure
excluding the land) for a given tax year and the City property taxes assessed and paid for the
residential structure (prior to demolition) (excluding the land) for the tax year in which the structure
was demolished (the “Base Year”). The annual incentives will be paid on April 1 of the calendar
year beginning with April 1 of the calendar year immediately following the first full calendar year
following the year in which a certificate of occupancy or completion is issued by the City following
completion of construction of the new residential structure. The applicable demolition incentive
will be paid as follows: (i) fifty percent (50%) of the demolition incentive within thirty (30) days after
completion of the demolition and submission of a request from the property owner/contractor for
payment, and (ii) the remaining fifty percent (50%) of the demolition incentive within thirty (30)
days after a certificate of occupancy or completion is issued by the City following completion of
construction of the new residential structure. Failure to timely commence and complete
construction of the new residential structure will require the applicant to repay the demolition
incentive to the City.
In the event the participant is a builder or developer, the annual incentive will be paid to the first
owner occupant of the new residence who acquires the new residence after the completion of
construction of the new residence and not to the developer or builder provided the new
residence is sold to the first owner occupant within twenty-four (24) months after completion of
construction of the new residence. The annual incentive would be paid on April 1 of the calendar
year beginning with April 1 of the calendar year immediately following the first full calendar year in
which the owner occupies the new residence pursuant to a certificate of occupancy or
completion issued by the City for such owner occupant.
The City may consider incentives under this program for the applicant who intends to purchase
adjacent residential properties, demolish both residential structures, re-plat the two lots into a
single lot and construct a new residential structure on the single lot. In such event, the combined
assessed value of the residential structures to be demolished shall apply for the determination of
the base year assessed value for the annual incentive provided the new residential structure to be
constructed on the single lot will have an assessed value following construction of at least two
times the combined assessed value of the residential structures to be demolished. In addition, only
one demolition incentive will be provided.
For illustration purposes only, assume that the assessed value for an existing residential improvement is
One Hundred Thousand Dollars ($100,000.00) for tax year 2018, and the project is approved by the
City in 2018, and demolition commences in 2018. In this example, the Base Year is 2018 and the Base
Year Assessed Value is $100,000.00. Further assume that the project is completed, the City issues a
certificate of completion or occupancy on May 15, 2019, and that the certified assessed value for
the new improvements for tax year 2020 (which will be the assessed value as of January 1, 2020,
which will be the first year that the full value of the new improvements will be included in the certified
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appraised value from the Dallas Central Appraisal District) is $300,000.00. The first incentive will be
equal to 100% of the difference in City taxes paid for the new improvements for tax year 2020 less the
City taxes paid for the improvements for the Base Year 2018, and would be paid to the applicant
April 1, 2021.
In determining the amount of the annual incentive to be paid pursuant to this Program, in no case
shall the City pay to the property owner an annual incentive in an amount greater than the
amount of City ad valorem taxes collected by the City with respect to the property on which the
new residence is constructed for the immediately prior tax year.
Exclusions from Base Year Assessed Value. In establishing the Base Year Assessed Value for the
property for the Program, valuation freezes, exemptions or reductions to which a current or former
owner or occupant of the property is entitled because of age, disability, or veteran status shall not
be taken into consideration. Furthermore, in determining the Base Year amount of City property
taxes paid, the base year amount paid will be determined as if no exemptions allowed pursuant to
Chapter 11 of the Texas Tax Code are applied unless the same exemption(s) will also be in effect
to reduce the amount of city property tax due for the tax years in which the incentive will be paid.
Incentive Agreement. The incentive will be provided pursuant an agreement between the City
and the property owner (or developer/builder, as the case may be) to be prepared and
approved by the City Attorney. The incentive agreement is not transferable and may not be
assigned if the property is sold or transferred (including a life estate) to a subsequent owner,
except in the case of a builder or developer as set forth above. In the event the new residence is
sold or transferred, the incentive agreement shall automatically terminate and no further
incentives will be paid.
Application. A person desiring to participate in the program shall submit an application to the
Director of Economic Development on a form provided by the City prior to commencement of
any demolition of the existing residence on the property. The application shall require the property
owner to provide the details of the proposed demolition/rebuild project, the estimated project
costs and such other information as the City may require.
Review Process. The application shall be reviewed by the Director of Economic Development (or
designee) who shall determine whether the applicant and the proposed project qualify for the
program. The Director of Economic Development shall review a completed application not later
than fifteen (15) business days after submission. If an application is incomplete or if additional
information is required, the Director of Economic Development shall notify the property owner in
writing of such request with a deadline to submit such requested information. The property owner
shall provide a complete application or the requested additional information, as the case may be,
within the stated time period or the application shall be deemed withdrawn. The Director of
Economic Development will notify the property owner in writing if the application is denied or
approved, and if approved, the Director will provide the required incentive agreement. The
decision of the Director of Economic Development shall be final. The property owner will be
required to execute and return the incentive contract within fifteen (15) business days after receipt
from the City.
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Section D: Acknowledgements
I hereby certify that I am the owner and occupant of the property described in Section B, above
(or that I am a builder or developer and own the property described in Section B above) and that
the information set forth herein and accompanying this application is true and correct to the best
of my knowledge. I hereby acknowledge that I have read, understand and agree to comply with
the City of Farmers Branch Residential Demolition/Rebuild Incentive Program policy. Any
VIOLATION of the terms pr conditions of the Residential Demolition/Rebuild Incentive Program
Policy or any false or misleading information in or submitted with this application shall constitute
grounds for rejection of the application or termination of the reimbursement of the incentives, if
approved, at the discretion of the City of Farmers Branch.
The undersigned acknowledges and agrees that the approval of the application shall not be
deemed to be approval of any aspect of the construction of the proposed project, and that I am
fully responsible for obtaining all required permits and inspections from the City of Farmers Branch,
and that the demolition of the existing structure and the construction of the new residence
complies with all applicable City rules, regulations and requirements.
I understand that my application will not be processed if it is incomplete. I further agree to provide
any additional information for determining eligibility as requested by the City of Farmers Branch
within the stated period of time for the submittal of the requested additional information, or the
application will be deemed denied.
I understand that the approval of the application and participation in the program is discretionary
with the City Council, and that the program may be suspended, terminated, or modified at any
time regardless of availability of City funds or pending applications on file.
The undersigned acknowledges that if the application is approved that I (and my spouse or other
joint owner of the property, if applicable) shall be required to enter into a contract with the City,
for the payment of the incentive under the Residential Demolition/Rebuild Incentive Program and
setting forth the Applicant(s) obligations under the Program.
Printed Name of Applicant
Signature Date
Printed Name of Co-Applicant
Signature Date
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Farmers Branch Residential Incentive Grant Program
Residential Demolition/Rebuild Incentive Program
Purpose. Chapter 380 of the Texas Local Government Code authorizes the City to provide
incentives consisting of loans and grants of city funds, use of city personnel, facilities and
services with or without charge, for the promotion of economic development. The
availability of quality housing stock in the City of Farmers Branch encourages the
relocation of businesses, attracts new businesses, and promotes expansion of existing
businesses to and within the City, all of which in turn will stimulate growth, create jobs, and
increase property and sales tax revenues. Subject to available funding and the conditions
of this program, the City desires to provide economic development incentive grants
pursuant to Chapter 380 of the Texas Local Government Code to encourage the
redevelopment of existing one-family detached residential properties with the
construction of new, higher value, one-family detached residential structures.
Eligible Applicants and Projects. This program is available to people who own and
occupy a one family detached dwelling (a “residence”) in the City who agree to
demolish the existing residence and to construct a new residence at the same location.
The eligible residence owner shall be required to enter into an agreement for the program
prepared by and approved by the City Attorney. Additionally, a developer or builder may
qualify for the program if the developer or builder owns a single-family residence in the
City and agrees to demolish the residence and construct a new single family residence at
the same location; provided, however, any incentive to be paid pursuant the program
agreement will be paid to the first person that owns and occupies the new residence and
not the developer or builder. The eligible developer or builder shall be required to enter
into an agreement with the City for the program prepared by and approved by the City
Attorney. In the case of a developer or builder, the program agreement will be assignable
to the first owner occupant of the new residence within 24 months after completion of
construction of the new residence, who will then be entitled to payment of the incentives.
The incentive will no longer be available, if the owner or developer fails to sell and transfer
the new residence to an owner/occupant within the twenty-four (24) month period.
The demolition of the existing residence and the construction of a new residence must be
completed, and a certificate of occupancy or completion issued by the City for the new
residence, not later than twenty-four (24) months after the effective date of the incentive
agreement entered with the City following approval by the City of an eligible project for
participation in the program. The program participants will be required to consent to
periodic City inspections of the demolition of the existing residence and the construction
of the new residence. Property owners who are delinquent in payment of property taxes
or other fees due to the City are ineligible to participate in the program, and the program
agreement will terminate if the property owner is delinquent in payment of property taxes
or other fees due to the City.
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The property owner must be approved as an eligible participant in the program and shall
have entered into the program agreement with the City prior to any demolition work
relating to the existing residence and prior to the construction of the new residence. A
project is not eligible if work commences prior to approval of the project by the City
Council.
There are four options with respect to the incentives which may be granted pursuant to
the Program. The eligible participant must select which option the participant desires to
pursue at the time of application. At not time may a property qualify for more than one
incentive pursuant to the Program.
Exclusions from Base Year Assessed Value. In establishing the Base Year Assessed Value
for the property for both Program Option 1 and Program Option 2, valuation freezes,
exemptions or reductions to which a current or former owner or occupant of the property
is entitled because of age, disability, or veteran status shall not be taken into
consideration. Furthermore, in determining the Base Year amount of City property taxes
paid, the base year amount paid will be determined as if no exemptions allowed pursuant
to Chapter 11 of the Texas Tax Code are applied unless the same exemption(s) will be also
be in effect to reduce the amount of city property tax due for the tax years in which the
incentive will be paid.
Incentive Agreement. The incentive will be provided pursuant an agreement between
the City and the property owner (or developer/builder, as the case may be) to be
prepared and approved by the City Attorney. The incentive agreement is not transferable
and may not be assigned if the property is sold or transferred (including a life estate) to a
subsequent owner, except in the case of a builder or developer as set forth above. In the
event the new residence is sold or transferred, the incentive agreement shall
automatically terminate and no further incentives will be paid.
Application. A person desiring to participate in the program shall submit an application to
the Director of Economic Development on a form provided by the City prior to
commencement of any demolition of the existing residence on the property. The
application shall require the property owner to provide the details of the proposed
demolition/rebuild project, the estimated project costs and such other information as the
City may require.
Review Process. The application shall be reviewed by the Director of Economic
Development (or designee) who shall determine whether the applicant and the proposed
project qualify for the program. The Director of Economic Development shall review a
completed application not later than fifteen (15) business days after submission. If an
application is incomplete or if additional information is required, the Director of Economic
Development shall notify the property owner in writing of such request with a deadline to
submit such requested information. The property owner shall provide a complete
application or the requested additional information, as the case may be, within the stated
time period or the application shall be deemed withdrawn. The Director of Economic
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Development will notify the property owner in writing if the application is denied or
approved, and if approved, the Director will provide the required incentive agreement.
The property owner will be required to execute and return the incentive contract within
fifteen (15) business days after receipt from the City.
Incentive Payment. Except as noted below, the annual incentive for Program Option 1 will
be paid to the property owner pursuant to the incentive agreement on April 1 of the
calendar year beginning with April 1 of the calendar immediately following the first full
calendar year following the date the City issues a certificate of completion following the
completion of an approved project. In a year in which the property owner decides to pay
property taxes on the property by utilizing the split-payment method, payment of the
incentive will not be made until the earliest of (a) April 1, (b) 60 days following delivery to
the City of paid tax receipts showing that all property taxes have been timely paid, or (c)
September 1. The amount of the incentive shall be determined by the Director of
Economic Development, whose decision shall be final in all respects.
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