Neighborhood Empowerment Zones (NEZ)
Neighborhood Empowerment Zones
Economic incentives greatly increase the success of the urban villages by promoting desirable residential and commercial development and density. Household growth in and around the villages strengthens the market for area businesses. These businesses in turn provide goods, services and jobs for area residents. Central city economic redevelopment expands the City’s tax base.
The City’s principal incentive for urban village revitalization is the Neighborhood Empowerment Zone (NEZ) program. In 2002, the City Council endorsed the designation of NEZs for twelve eligible urban villages and surrounding lower-income neighborhoods along seven central city commercial corridors, with a prerequisite that villages be rezoned to mixed-use before NEZ designation. Citizens are leading the rezoning petition drives. With NEZ designation come incentives to qualified mixed-use, residential, commercial and industrial projects. Incentives include but are not necessarily limited to municipal property tax abatement, development fee waivers and release of city liens.
What is a Neighborhood Empowerment Zone (NEZ)?
The Neighborhood Empowerment Zone is a segment of a neighborhood, designated as such by the City of Fort Worth eligibility criteria that can receive incentives to promote affordable housing and economic development, and improve the quality of social services, education, or public safety to residents of the NEZ.
What is the Neighborhood Empowerment Zone (NEZ) Program?
The NEZ program is the vehicle by which incentives like building permit fee waivers, release of city liens, and municipal property tax abatements can be granted to homeowners, investor-owners and developers proposing new construction projects or rehabilitation projects that are located within the NEZ area.
How can I apply for NEZ incentives?
Apply at the Permitting Center Check-in located in City Hall at the south-end lower level. When you apply for a building permit, and if required, a zoning change, staff will assess your project at that time to determine if it is NEZ eligible. If it meets all criteria, you will receive notice that your project has been certified to receive NEZ incentives.
How long will it take before I know if I am certified to receive NEZ incentives?
5 to 7 days.
What are some of the criteria for becoming certified to receive NEZ incentives?
* The property must be located in a NEZ area.
* The proposed rehab must be 30% or more than the TAD improvement value of the property.
* The property must be zoned properly.
* The property is a permanent structure, and not a mobile structure.
* The owner/developer is not delinquent in paying taxes and does not have any City liens against any property they own.
* The owner/developer has not been subject to a Building Standards Commissions’ order of Demolition where their property was demolished within the last five (5) years.
* The property has received City Council support if it is a liquor store or package store.
Are there any fees associated with participating in this program?
Yes. There is an application fee of $25 for all Basic Incentives excluding tax abatements. The application for residential tax abatements is $100. The application fee for multi-family, commercial, industrial, community facilities and mixed-use development projects is one-half of one percent (0.5%) of the proposed Project’s Capital Investment, with a $200 minimum not to exceed $2,000. If you are approved for tax abatements, City staff will work with you to finalize the tax abatement agreement with the City.
What City Departments are involved in this program?
- Planning and Development Department – NEZ intake and certification; release of development fee waivers; and release of City liens.
- Housing Department – facilitates designation of new NEZs; recommend changes in NEZ policy; process five and ten year residential property tax abatements; and release of City liens for tax abatement properties.
- Code Compliance – release of trash, demolition, weed, and board-up/open structure, liens.
- Economic Development: Ten year tax abatements for non-residential properties or projects.
- Transportation/Public Works: Community Facility Agreement application fee waivers; paving liens
- Water Department – Release of impact fee waivers for water and wastewater
NEZ Brochure for Developers
NEZ Brochure for Owners