Demolition Grant Program in North Carolina

The North Carolina Rural Demolition Program, administered by the Rural Economic Development Division under the North Carolina Department of Commerce, provides targeted grant support to local governments to facilitate the demolition of blighted, publicly owned buildings. This initiative is part of the broader State Rural Grants initiative, which aims to stimulate economic growth in underserved rural areas by preparing sites for redevelopment and private sector investment. The goal is to remove physical barriers to economic use and lay the foundation for future job creation and commercial revitalization. To qualify for assistance, applicants must be units of local government in North Carolina that own the property proposed for demolition. Eligible jurisdictions must be situated in Tier 1 or Tier 2 counties, or in rural census tracts within Tier 3 counties, as defined by N.C.G.S. 143B-472.127(a)(2). A rural census tract is characterized by a population density of fewer than 500 persons per square mile based on the most recent decennial census. The program explicitly excludes residentially zoned properties and those intended for governmental, public, recreational, parking, or housing use for three years after the demolition is complete. The program mandates several eligibility criteria: the building must have remained vacant for at least three years prior to the proposed demolition, and the local government must provide a minimum 25% cash match toward the total project cost. This match must originate from local resources and cannot include state or federal grant funds. Additionally, there must be a reasonable expectation of future private-sector investment and job creation on the site once demolition is completed. Grant funds are strictly limited to the cost of demolishing and removing the target structure, with the post-demolition site required to be development-ready. Award amounts are determined based on the building's square footage and the projected economic impact of redevelopment. Funding can reach up to $75,000 for buildings of 100,000 square feet or less, and up to $150,000 for buildings exceeding 100,000 square feet. Alternatively, awards may be calculated at no more than $12,500 per projected job to be created on the redeveloped site. The Rural Infrastructure Authority (RIA) is responsible for awarding funds and meets six times annually to evaluate and approve applications. The application process follows a clearly defined schedule. For the 2026–2027 cycle, deadlines and corresponding award dates include January 8 (awards on February 19), February 26 (April 16), April 23 (June 18), June 18 (August 20), August 20 (October 15), October 22 (December 10), and so on into early 2027. Application materials can be accessed via official channels, and interested parties should coordinate their submissions with these published deadlines to ensure eligibility. There is no pre-application phase such as letters of intent or concept papers noted. For more information or guidance, applicants may contact Hazel Edmond, Director of Rural Engagement & Investment within the Rural Economic Development Division. She can be reached at 984-297-5082 or via email at [email protected]. The program page was last updated on December 12, 2025.