Demolition Grant Program in North Carolina

The Rural Demolition Program is administered by the North Carolina Department of Commerce's Rural Economic Development Division. This grant opportunity supports local governments in North Carolina seeking to demolish blighted, publicly owned buildings, with the aim of redeveloping these sites to foster private investment and job creation. Grants are awarded by the Rural Infrastructure Authority (RIA), a governing body that convenes six times annually to evaluate and approve applications. The program’s primary objective is to enable economic redevelopment by removing derelict structures that hinder investment. Eligible projects must meet several stringent criteria, including a requirement that the targeted building be publicly owned and vacant for at least three years prior to demolition. After demolition, the land cannot be repurposed for government or public use, housing, recreation, or parking for at least three years post-award, reinforcing the goal of stimulating private sector development. Grant funding may only be used for the demolition and removal of the designated building, and once completed, the site must be development-ready. The program necessitates a local cash match of at least 25 percent of the total project cost, which must come from non-federal, non-state sources. Furthermore, applications must demonstrate a reasonable expectation of future private investment and job creation on the site. Properties zoned exclusively for residential use are not eligible for this program. Eligibility is limited to units of local government situated in Tier 1 or Tier 2 counties, or in rural census tracts within Tier 3 counties, as defined by North Carolina General Statute 143B-472.127(a)(2). Rural census tracts are areas with population densities under 500 people per square mile, based on the most recent federal census data. The tier designation of counties can be confirmed via the NC Department of Commerce’s official tier rankings. The amount of funding awarded is based on multiple factors including the size of the building and the potential economic and job creation impact. The maximum grant award is $75,000 for buildings up to 100,000 square feet, $150,000 for buildings larger than 100,000 square feet, and/or $12,500 per job projected to be created. Applications and awards follow a fixed schedule, with deadlines occurring bi-monthly and award decisions made shortly thereafter. The next application deadline is June 19, 2025, with awards announced on August 21, 2025. The program is managed by Hazel Edmond, Director of Rural Engagement & Investment. Interested applicants may contact her at hazel.edmond@commerce.nc.gov or by mobile at 984-297-5082 for additional details or assistance. Application materials and deadlines are available on the North Carolina Department of Commerce’s website.