Demolition Grant Program in North Carolina

The Rural Demolition Program, administered by the North Carolina Department of Commerce’s Rural Economic Development Division, is designed to stimulate economic development through the demolition of blighted, publicly owned structures. As part of the State Rural Grants, the initiative focuses on enabling site readiness for redevelopment by clearing vacant buildings that no longer serve a productive use. The program is governed by the Rural Infrastructure Authority (RIA), which convenes six times annually to review and award applications. The program targets local governments in economically distressed areas, defined using North Carolina’s tier designation system and rural census tract criteria. The purpose of the grant is to prepare underutilized sites for future private investment and job creation by removing obsolete structures that may otherwise hinder development. Grant funds are strictly limited to demolition and removal activities. Buildings must be vacant for at least three years prior to the proposed demolition, and following demolition, the site must not be used for government or public functions, parking, recreation, or housing for at least three years. The property must be site-ready upon completion of demolition, indicating an immediate potential for private redevelopment. Eligibility is restricted to units of local government located in Tier 1 or Tier 2 counties, or within rural census tracts in Tier 3 counties. The North Carolina General Statute defines a rural census tract as an area with a population density of fewer than 500 people per square mile based on the latest decennial census. Further, the applying unit of government must own the property in question and provide at least a 25% cash match from local funds. This match cannot originate from state or federal grant sources. There must be a reasonable expectation that the cleared site will attract private sector investment and generate employment. Sites zoned for residential use are ineligible for this grant. Award amounts are determined by several factors, including the county’s tier designation, the size of the building to be demolished, and the potential for economic impact on the redeveloped site. Grants can award up to $75,000 for structures that are 100,000 square feet or smaller and up to $150,000 for larger buildings. However, no more than $12,500 can be awarded per projected job to be created. This tiered and impact-based funding model ensures that resources are allocated to projects with significant potential for economic revitalization. The application process is cyclical, with six set deadlines per year corresponding to RIA meeting dates. For 2026, upcoming application deadlines are scheduled for February 26, April 23, and beyond, with corresponding award dates in April, June, and so forth. Interested applicants must submit their completed applications by the posted deadlines, as late submissions are not accepted. The grant page provides direct access to application materials, and applicants may contact Hazel Edmond, Director of Rural Engagement & Investment, for additional guidance. Successful projects under this program can transform distressed properties into valuable assets that contribute to local economic development. By aligning property readiness with broader economic objectives, the Rural Demolition Program plays a critical role in revitalizing North Carolina’s rural communities.