City of Amarillo, TX

The Neighborhood Empowerment Zone program is designed to improve neighborhood conditions by encouraging private investment in housing, businesses, and services in the neighborhood plan areas. Authorized by Chapter 378 of the Texas Local Government Code, the NEZ program makes incentives such as building permit fee waivers, sales tax rebates, and municipal property tax abatements available to homeowners, investor-owners, and developers proposing new construction or rehabilitation in designated zones.

Click here to view Neighborhood Empowerment Zone Sample Projects for examples.

How Does It Work? 

1. Identify your construction or rehabilitation project. See the sample case studies for examples and review the eligibility list below. Projects must meet the goals of the respective neighborhood plans and the Development Guidelines established for each zone.
2. Verify that the project is located within one of five Neighborhood Empowerment Zones. Note, in Downtown, the program is limited to fee waivers for residential projects. Use the map to check the address location.
3. Complete the application and submit to the Development Customer Service Coordinator.
4. Planning staff will then review complete applications to ensure the project meets the requirements of the program. Approved projects will receive NEZ Certification. This immediately qualifies the project for development fee waivers and the other departments will be notified. If applying for permit fee waivers only, you will not pay anything at the time of permitting.
5. Projects that invest 20% or more of the PRAD Improvements Value are then eligible to receive a property tax abatement on the increase in value or a sales tax rebate. Both of these incentives are required to be approved by City Council which will require an additional 4-6 weeks.

Program Documents

Click each link for more information.

◼ Application

◼ NEZ Policy 

◼ NEZ #1 North Heights Development Guidelines

◼ NEZ #2 Barrio Development Guidelines

◼ NEZ #3 San Jacinto Development Guidelines

◼ NEZ #4 Eastridge Development Guidelines

◼ NEZ #5 Downtown Development Guidelines

Where are the Neighborhood Empowerment Zones located?

• North Heights
• Barrio
• San Jacinto
• Eastridge
• Downtown*  (residential only, fee waivers only)

What incentives are available through the NEZ program?

There are three types of incentives available:

• Development Fee Waivers
• Municipal Property Tax Abatement* (5 or 10-year agreements)
• Sales Tax Rebates*   (.5%, 5-year agreements)  

*Projects are required to invest at least 20% of the PRAD Improvements Value.

What types of projects are eligible?

• Owner-occupied single-family project – rehabilitation or new construction
• Investor-owned single-family project – rehabilitation or new construction
• Multi-lot single-family development projects to be owner-occupied – new construction  Tax rebates may be considered through a Chapter 380 agreement.
• Duplex, townhome, and condominium project to be owner or renter-occupied – rehabilitation or new construction
• Multiple-family apartment (3+ unit) project – rehabilitation or new construction
• Mixed use project – rehabilitation or new construction
• Non-residential projects – rehabilitation or new construction. The eligible uses are restricted to neighborhood services, retail, office, institutional, and light commercial consistent with development guidelines and neighborhood plan.
  
  

Is there a fee to apply?

• There is no fee to apply. 
  
  

If my property is within a Zone, am I required to participate?

• You are not required to participate. If you are applying for permits for the project, you'll be asked to sign an acknowledgment that you are aware of the program and choose not to apply.
  
  

For details and more information please contact:

Assistant Director of Planning, Drew Brassfield 806-378-5241 or drew.brassfield@amarillo.gov