Whether you like to DIY or hire a professional, it’s a great time to get started on those home renovation and reconstruction projects. The Flower Mound Town Council last week approved a Home Improvement Incentive program, providing residents an opportunity to benefit from increasing their home’s value.
How can I participate?
Anyone who owns a home in a single-family zoned area, and is in good-standing with their taxes and other Town fees, is eligible to participate in the program. 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.
To participate, a homeowner must submit an application to the Town of Flower Mound Financial Services department prior to the start of construction, provide a cost estimate for the improvement project, consent to periodic inspections during construction, and verify final construction costs.
If the homeowner’s application is approved, the homeowner will then be required to execute an economic development agreement with the Town, prepared and approved by the Town attorney.
How can I benefit?
The homeowner will receive a one-time incentive payment, equal to 10 times the amount of the increase in Town taxes, based on the property’s pre-construction and post-construction appraised value. The Denton County Appraisal District will determine the property’s certified value. The incentive will be paid to the homeowner pursuant to the agreement on April 1 of the first full calendar year subsequent to completion of the approved project.
Assume that a home improvement project begins in September 2015 and is completed December 2015. Further assume that the 2016 property taxes increase $300 above the 2015 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, 2017. Assume that a home improvement project begins in January 2016 and is completed July 2016. Further assume that the 2017 property taxes increase $550 above the 2016 property taxes as a result of the increase in the taxable value of the improvements. The total incentive would be $5,500 and paid on April 1, 2018.
Anything else I should know?
Your incentive payment may result in federal income tax consequences. You should consult your own tax adviser. If the amount of your incentive payment is $600 or more you may receive a Form 1099-misc from the Town.
Where can I go to find out more information and submit my application to participate?
Visit www.flower-mound.com/homeimprovement or call the Town of Flower Mound at 972.874.6040.