Rural Building Demolition Program

*Guidelines and Application are subject to change at the discretion of the Rural Infrastructure Authority

The Demolition Grant Program under the Rural Grants/Programs Section of the North Carolina Department of Commerce will provide grants to local governments to support the demolition of a vacant building to encourage site rehabilitation and site availability for economic development purposes.

Eligible applicants are units of local government located in either a Tier 1 or Tier 2 county, or a rural census tract in a Tier 3 county. The tier designations can be found on the NC Department of Commerce website at In Tier 1 or Tier 2 counties, priority will be given to towns or communities with populations less than 5,000.

As prescribed in N.C.G.S. 143B-472.127(a)(2) a rural census tract is an area having a population density of less than 500 people per square mile according to the most recent decennial federal census. The rural census tract designations can be found at

Funding Availability:

  • Up to $75,000 for buildings 100,000 square feet or less
  • Up to $150,000 for buildings over 100,000 square feet
  • Building located in Tier 1, Tier 2, or rural census tract of a Tier 3 county


  • The unit of local government (“applicant”) must pass a Resolution approving the demolition.
  • If multiple political jurisdiction tax the property or building, all of the jurisdictions must pass a Resolution approving the demolition.

  • The building must be vacant for three years prior to the proposed demolition.
  • The unit of local government must have control of the property at the time of grant award, either through a contractual arrangement or ownership.
  • The local government must contribute at least 25% of the total project cost as a cash match. The cash match shall come from local resources and may not be derived from other State or federal grant funds. If awarded funds towards the demolition project, certain pre-development costs may be counted towards the local match requirement up to one year prior to the award date of the grant.
  • There must be a reasonable expectation of private sector investment locating on the site. Properties having residential zoning are not eligible for this grant. The proposed property must be zoned for non-residential purposes for a minimum of five (5) years after the award of the grant
  • The only eligible expense is building demolition and removal.
  • Pre-development costs are not eligible for payment from the grant.
  • Upon completion of the project the property must be site ready for development.
  • The site shall not be used for locating public facilities, including parking lots, parks or recreational facilities.
  • The unit of local government receiving funds under this grant program shall comply with Chapter 143, Article 8 of the N.C. General Statutes, and any other applicable state regulations regarding procurement. Local governments are cautioned that funds received for the project from other sources may have additional procurement regulations that also must be followed. Grantees are encouraged to consult with their attorney to ensure compliance with all applicable regulations that govern procurement for the proposed project.
  • The unit of local government receiving funds under this grant program shall comply with all federal, state, and local laws, rules, regulations, and ordinances applicable to the project and to the grants pertaining thereto, including (without limitation), requirements relating to procurement, environmental standards and permitting standards where applicable. Grantees are encouraged to consult with their attorney to ensure compliance with all applicable demolition requirements.
  • Local government recipients will be subject to state audit and reporting requirements.
Click here for application, forms and deadlines. 

Contact Information:
Melody Adams
Director, Rural Grant Programs
Rural Economic Development Division
NC Department of Commerce
919-814-4661 (Office)

Mailing Address:
4346 Mail Service Center
Raleigh, NC 27699-4346

Physical Address:
301 North Wilmington Street
Raleigh, NC 27601

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