Background
The City’s Two-Year action plan outlines All-In Initiatives, which are identified as the top and most important priorities for the community. One of the All-In Initiatives is Redevelopment, which includes Residential Reinvestment.
Earlier this year, staff conducted data-driven research to identify key issues within Sugar Land neighborhoods that could be addressed through city outreach and pilot programs. Much of the data provided insight into Sugar Land’s aging neighborhoods, housing, and curb appeal elements. In addition, staff conducted research on other cities’ residential reinvestment programs and interviewed program administrators.
Supported by this research, staff has designed and is proposing residential reinvestment programs under the umbrella of “Great Homes”, a residential reinvestment initiative. The purpose of Great Homes is to empower Sugar Land residents and communities to participate with the City in preserving, protecting, and enhancing Sugar Land’s single-family housing and neighborhood areas.
On December 6, 2022, a City Council workshop was held to review and discuss the residential reinvestment pilot programs and initiatives under Great Homes, and staff received feedback from City Council.
Great Homes Update Program
The Great Homes Update Program is an incentive program that promotes local economic development through encouraging reinvestment in single-family properties. Eligible homeowners can apply for a reimbursement incentive to complete qualifying projects that rehabilitate, enhance, or refurbish the exterior of their residential property.
The program includes property requirements. All single-family residences located within the City are eligible for participation in the Program. Townhomes, multi-family buildings, and condominiums are not eligible. Any occupancy and ownership qualify. Finally, property taxes must be current, and the property must be covered by a valid and current homeowner’s insurance policy.
Once an applicant’s application is approved, applicants will be required to enter into an agreement with the City that outlines the terms for receiving a reimbursement. Applicants will manage their own projects. Work on a qualifying project must both start and be fully completed after an agreement has been executed for the project to be reimbursed. Applicants will receive a notice to proceed from the City after an agreement has been executed.
If an applicant and qualifying project is approved through the program, matching reimbursements may be provided for a fraction of the total project cost, up to a maximum incentive amount. Reimbursement incentive amounts are not to exceed $10,000.00 per project. Qualifying projects for single-family residences located within the city that meet project eligibility requirements are eligible to receive an incentive of up to 10% of the project cost, excluding sales tax and permitting fees. An incentive of up to 25% is available for properties with an appraised market value less than $370,000.00 based on the latest certified appraised values from FBCAD and a build date of 1994 or prior.
After work has been completed on a qualifying project, the applicant must submit a complete reimbursement package to the City. Program staff will review the reimbursement package for completeness, and the City will pay the reimbursement incentive no later than three months after a reimbursement package is determined to be complete.
Staff Recommendation
The Economic Development Department recommends that the City Council approve Resolution No. 22-55 adopting a City Council policy for a Great Homes Update economic development program.