PILLAR: Vibrant
AGENDA DATE: March 25, 2026
COUNCIL DISTRICT(S): 7
DEPARTMENT: Office of Housing and Community Empowerment
PRIORITY: N/A
______________________________________________________________________
SUBJECT
Title
Authorize an amendment to Resolution No. 20-1568, previously approved on October 13, 2020 to (1) incorporate and apply the current terms and conditions of the Land Transfer Program (LTP), as amended most recently by Resolution No. 24-0257, on February 14, 2024, into Resolution No. 20-1568 which authorized the Conditional Grant Agreement and Development Agreement (Agreement) with Good Urban Development, LLC (Developer) for the Mill City Lots Infill Project; (2) amend the sales price limits from Resolution No. 20-1568 to permit homes to be sold at or below the maximum sales price allowed by the LTP and/or funding source requirements, as applicable, for the prospective homebuyers income at the time of qualification; and (3) amend Section 3.10 of Resolution No. 20-1568 to extend the project timeline as follows: (i) Developer shall construct and sell each affordable housing unit (Unit) within two years from the execution of the Agreement; (ii) Developer may receive one one-year extension for construction at the discretion of the Director of the Office of Housing and Community Empowerment (Director); and (iii) Developer may receive one additional one-year extension for the sole purpose of selling and occupying each Unit, at the discretion of the Director, provided that all Units are constructed within three years from the execution of the Agreement - Financing: No cost consideration to the City
*In alignment with Dallas Housing Resource Catalog.
Body
BACKGROUND
Historically, the Office of Housing and Community Empowerment (OHCE) administers programs through the Dallas Housing Resource Catalog (DHRC) that seek to appropriately incentivize private investment for the development of quality, sustainable housing that is affordable to the residents of the City. One program is the New Construction and Substantial Rehabilitation Program, which seeks to provide financial assistance to new developments or substantial rehabilitation developments, where such assistance is necessary. This program operates with the Land Transfer Program, administered by the Department of Facilities and Real Estate Management, which allows the City to sell qualifying City-owned real property and resell tax-foreclosed real property to for-profit, non-profit and/or religious organizations in a direct sale at less than fair market value of the land, consistent with the authorizing statute or ordinance.
On May 9, 2019, OHCE released a Notice of Funding Availability (NOFA) for single-family housing development, pursuant to both the New Construction and Substantial Rehabilitation Program and the Land Transfer Program. The primary purpose of the NOFA was to provide gap financing in the form of a repayable loan or grant to support new development and single family for-sale, lease-purchase or rental housing units or substantial rehabilitation of existing single-family housing units located within the City limits.
Additionally, the NOFA served as the means by which proposers could apply to purchase land at a below-market price via the Land Transfer Program. Eligible land was offered in “clusters” of approximately five to 24 geographically proximate parcels.
Various sources of funding were made available through the NOFA, including:
• $2,454,933.00 in HOME Investment Partnership Program (HOME) Funds;
• $2,585,000.00 in HOME Community Housing Development Organization (CHDO) set aside;
• Up to $8,000,000.00 in 2017 General Obligation (GO) Bond Funds reserved for housing activities in Council District 4; and
• Up to $8,000,000.00 in 2017 GO Bond Funds reserved for housing activities in Council District 7.
Through its scoring criteria, the NOFA prioritized proposals that: (1) based on feasibility and consistency of the proposed development scheduled, could expeditiously assist the City with meeting its annual production goals; (2) proposed a comprehensive, data-driven approach to solving a housing issue identified in the (CHP); (3) proposed to develop housing units on parcels of real property offered through the Land Transfer Program as well as on parcels of land owned by the proposer; (4) served a range of income bands from 30-120% of Dallas Area Median Income (AMI), based on market, development type and funding source; (5) are mixed income and include both affordable and market rate units; (6) are located near amenities such as full-scale grocery stores, major employment centers, and public parks; and (7) will be developed and managed by individuals or entities who have significant experience in successfully developing and managing projects that include an affordable housing component.
On October 13, 2020, the City Council authorized the execution of a conditional grant agreement with Good Urban Development, LLC and/or its affiliates not to exceed $2,000,000.00 in ECO (I) Fund 2017 GO Bond Funds for the sale of up to 25 Land Transfer lots and the development of up to 50 single family homes, included in Mill City Infill cluster by Resolution No. 20-1568.
On June 9, 2023, the City of Dallas and Good Urban Development, LLC entered into a Conditional Grant Agreement and Development Agreement with Good Urban Development, LLC for the Mill City Infill Project.
On July 10, 2025, the City of Dallas and Good Urban Development, LLC executed Supplemental Agreement No. 1 to the Conditional Grant Agreement and Development Agreement for Good Urban Development, LLC, which extended the construction deadline to December 9, 2025.
Progress to Date:
Construction began on the project in June 2023. To date, 16 homes have been completed, and 9 are under construction. The developer will retain an additional 25 lots to develop 25 housing units. Of the 16 homes that have been completed, 7 have been sold to qualified buyers. The projected completion date for construction for the first phase is June 2026. The additional 25 homes in the second phase will be complete by December 2029.
Amendment to Existing Resolution:
The original resolution included a fixed two-year delivery timeline with limited extension options. While intended to ensure timely completion, this rigid structure has proven impractical given the complexities of housing development, infrastructure coordination, and market fluctuations. To address this issue, the proposed amendment removes delivery timelines from the resolution and instead establishes them within the Conditional Grant Agreement and supplemental agreements. Authority to update timelines will be delegated to the Director, allowing administrative adjustments without requiring additional City Council action. This change provides flexibility while maintaining accountability and oversight. Additionally, OHCE will reformat and enhance quarterly progress reports to clearly show the status of each project, including updated timelines and units delivered, ensuring transparency for City Council and stakeholders.
The amendment also updates buyer eligibility requirements. Under the current resolution, all buyers were required to meet the Dallas Homebuyer Assistance Program (DHAP) underwriting criteria, even if they were not receiving financial assistance. This creates unnecessary barriers for non-assisted buyers and slows the approval process. The proposed change removes DHAP underwriting for non-assisted buyers and instead applies Land Transfer Program eligibility standards, consistent with the 2024 amendment to the program. Because the 2024 changes did not apply retroactively, this amendment ensures those updated practices can be applied to the existing project. This will streamline approvals, reduce delays, and support timely home sales while maintaining compliance with program objectives.
The amendment also removes fixed sales price limits from the resolution. Locking in home prices within a Council resolution is not practical because homes may not be delivered until several years after approval, during which market conditions and federal affordability standards can change significantly. The U.S. Department of Housing and Urban Development (HUD) updates income and affordability limits annually, and the Land Transfer Program adjusts its pricing guidelines accordingly. By taking pricing out of the resolution and instead setting sales price limits through supplemental agreements tied to HUD updates, the City ensures that affordability requirements remain current and compliant without requiring repeated City Council action. This approach provides flexibility, maintains alignment with federal standards, and supports the long-term success of the program.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On May 9, 2018, the City Council adopted a CHP that set citywide production goals for homeownership and rental units for the next three years along with respective income bands that will be prioritized within the production goals and also set forth various programs, tools and strategies to be used to meet the production goals while also overcoming concentrations of poverty and racial segregation, by Resolution No. 18-0704.
On May 22, 2019, the City Council authorized amendments to the City of Dallas CHP to establish a Land Transfer Program, by Resolution No. 19-0824.
On April 12, 2023, the City Council adopted the Dallas Housing Policy 2033 (DHP33) to replace the CHP, by Resolution No. 23-0443 and the Dallas Housing Resource Catalog (DHRC) to include the approved programs from the CHP, by Resolution No. 23-0444.
On February 14, 2024, the City Council amended the terms and conditions of the Land Transfer Program (LTP) to (a) release the LTP deed restrictions initially required when a qualified buyer is also a Dallas Homebuyer Assistance Program (DHAP) participant or receives other funding assistance that requires recapture deed restrictions, and instead impose the federally required DHAP (recapture) deed restrictions on the lots(s) which shall be filed and recorded in the real property records of the county in which the parcel(s) of real property is located; (b) no longer require a qualified buyer that is not a DHAP participant to meet DHAP underwriting guidelines; and (c) continue to require a qualified buyer that is a DHAP participant to meet DHAP underwriting guidelines; and the terms and conditions of the Single Family Development Requirements/Underwriting (SFDRU) program, to no longer require Community Housing Development Organizations (CHDOs) to repay HOME-funded loans issued by the City for acquisition and construction financing and instead categorize them as forgivable loans as permitted by HUD regulations, by Resolution No. 24-0257.
On December 10, 2025, the City Council adopted the Drivers of Opportunity Policy Framework, an omnibus resolution and ordinance to ensure continued equitable and legally compliant use of federal funds. The Drivers of Opportunity Policy shifts the City’s equity focus from traditional diversity, equity, and inclusion approaches to a forward-looking framework centered on core opportunity drivers, including employment, education, health, safe neighborhoods, and well-being-thereby aligning with federal anti-discrimination directives while maintaining support for underinvested communities, by Resolution No. 25-1836.
On December 10, 2025, the City Council authorized the update and consolidation of previous City policies, by Omnibus Resolution No. 25-1835 which included the adoption of DHP33, by Resolution No. 23-0443, to reflect the adoption of these strategic policy changes across City departments, reinforcing City priorities and streamlining operational directives.
The Housing and Homelessness Solutions Committee was briefed by memorandum regarding this matter on February 23, 2026. <https://cityofdallas.legistar.com/View.ashx?M=F&ID=15262718&GUID=5A8FE48C-9AC3-4D71-A6CC-E2195CC98B2B>
The Housing and Homelessness Solutions Committee was briefed by memorandum regarding this matter on March 24, 2026. <https://cityofdallas.legistar.com/View.ashx?M=F&ID=15328621&GUID=8AB72D93-D66B-4403-B501-66F09DB058E3>
FISCAL INFORMATION
No cost consideration to the City.
OWNER/EXECUTIVE
Good Urban Development, LLC
John H. “Jack” Matthews, President
MAP
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