Durham County to help some homeowners pay tax bills in gentrifying neighborhoods

Durham County homeowners in gentrifying neighborhoods can take advantage of a new tax-relief program.

The Department of Social Services is launching the Low Income Homeowner’s Program after county reappraisals raised the average tax value on homes by more than 25% in 2019.

“I’m a caretaker for my father now, and I just had to pay his property taxes and it’s a hit!” said William “Ben” Rose, the DSS director. “And he’s on a fixed income.”

“It can be a hit to anybody, so we want to help people maintain the housing they have with all the rising costs,” he said.

Durham County commissioners budgeted $750,000 for the program in late June, along $500,000 from the city of Durham.

This program will be separate from the city’s Community Development Department’s Longtime Homeowner Grant Program.

While the city’s program sends checks to help residents pay taxes from previous years, the county’s program pays current tax debt.

The homeowner must be a Durham County resident and can receive up to 50% of their tax bill or $750, whichever is less.

To qualify, applicants must own and have lived in their home for 10 years and have a household income of 30% of or below the area median income. In Durham County. For a family of four, 30% of the AMI is $27,250.

Orange County is also starting a tax relief program. It will serve households earning up to 80% of the area median income and could help an estimated 14% of county homeowners, or 1,378 households, officials said.

According to Rose, Durham County decided to start with a lower percentage of AMI due to the newness of the program and to see how many applications come in.

Currently, the tax department estimates up to 3,000 applications could come in during the pilot stage of the program.

Social Services will approve applications once homeowners submit their tax bill, proof of identity and proof of income.

Durham County tax administrator Dwane Brinson said residents would not qualify for the county’s new program if their household currently receives grant assistance from the department’s program for commercial builders or the city’s tax-deferral program.

The tax department also offers a Property Tax Assistance Evaluator tool that residents can use to quickly see which programs they qualify for.

“Our goal is to stabilize housing for vulnerable citizens because our past programs have focused on renters, so this our new twist to assist them,” said Rose.

This story was originally published October 12, 2021 at 2:14 PM.