Program Aimed at Lifting the Entire Community
Just as “a rising tide lifts all boats,” the City of Richardson Home Improvement Incentive Program (HIIP) is designed to lift the value of the entire Richardson community, one house at a time. While the Home Improvement Incentive Program rewards individuals for their home investment, other homeowners and residents benefit too from the added value of revitalized neighborhoods.
HIIP was started in Richardson in 2007 by the City Council. It was visionary at its inception, and continues to prove itself as an innovative boon to neighborhoods. In a city like Richardson with a low percentage of undeveloped land, maintaining existing houses and longstanding neighborhoods is vital to community health.
Lindsay Turman, Community Services Administrator, said, “The City Council had a big focus on residential areas, which led to an emphasis on redeveloping neighborhoods. HIIP was a totally new idea. The program was needed and has been successful.”
The program has effectively encouraged investment in Richardson residences. Since the launch of the program, the City has given more than 1,100 incentive payments totaling more than $7 million in incentives for projects that raised properties’ appraised values by a combined $122.3 million.
“If you buy a home that was built more than 30 years ago, there is a chance you’ll have projects that are needed,” Turman said. “Investing in your home can be a financial burden. Why not choose a home in Richardson, where you can get something back for your investment?”
Qualifying HIIP projects range from home improvements like kitchen and bathroom remodels to complete rebuilds. Participants must turn in an application to Community Services prior to the project’s start in order to qualify for the incentive. To help ensure homeowners don’t miss out on the opportunity, the City places an informational notice on residential permits in which the project leader must check off that he or she is aware of the program.
In compliance with the HIIP program, participants must follow guidelines including completing required paperwork, submitting invoices, allowing periodic inspections, taking project photos and staying current on tax payments. Qualifying projects must be completed within 24 months. New home values are established by the county appraisal district in January after the project is completed. That year, the new taxable value is established and home taxes are paid by the homeowner.
The following year, the City pays 10 times the amount of the increase in municipal property taxes to the homeowner via check. The tax calculation does not include other taxes including county, school, hospital and community college.
The HIIP program may be utilized for disaster recovery home projects if applicable. Senior homeowners who receive a home tax discount can take advantage of the program as well. Learn more about the Home Improvement Incentive Program at www.cor.net/hiip.
WHAT IS HIIP?
HIIP stands for Home Improvement Incentive Program. It
was implemented in 2007 by the Richardson City Council.
WHO CAN PARTICIPATE?
Richardson homeowners in single-family-home zoned areas.
HOW DO YOU PARTICIPATE?
Submit an application to Community Services prior
to the planned project and work with the office on
requirements. Spend at least $20,000 on a reconstruction
or remodeling home improvement project and follow HIIP
process guidelines. The renovation must be completed within
24 months of the project approval.
WHAT IS THE BENEFIT?
Upon successful completion of the project
and subsequent appraisal, the home’s increase in
value is determined. A one-time payment is made to the
homeowner by the City in the amount of 10 times’ worth the
increase in annual City property tax.
WHAT IS AN EXAMPLE?
If you complete a $20,000-plus renovation project
on your home, and your house’s City property taxes
increase by $400 per year as a result of the increase
in the county’s home appraisal value, the City
would pay you $4,000 through the HIIP program the
following year after the new value of the home is established.
HOW DO YOU FIND OUT MORE?
Learn more about the City of Richardson Home Improvement
Incentive Program at www.cor.net/hiip or call 972-744-4180.