PILLAR: Fiscally Sound
AGENDA DATE: May 27, 2026
COUNCIL DISTRICT(S): N/A
DEPARTMENT: Budget and Management Services
PRIORITY: N/A
______________________________________________________________________
SUBJECT
title
Authorize (1) a secured, zero percent interest, forgivable loan agreement, approved as to form by the City Attorney, in the amount of $800,000 to First Presbyterian Church of Dallas, Texas dba The Stewpot to provide for rehabilitation of the property located at 1610 South Malcolm X Boulevard, Dallas, Texas 75226 which provides comprehensive, no-cost, barrier-free medical, dental, and psychiatric services for individuals experiencing homelessness for the period June 1, 2026 through July 31, 2027; and (2) the execution of any and all terms, conditions, and documents required by the forgivable loan agreement - Not to exceed $800,000 - Financing: FY 2025-26 CDBG Reprogramming No. 2 Fund
*In alignment with HUD Consolidated Plan.
Body
BACKGROUND
On August 6, 2025, the City Council adopted the City’s FY 2025-26 Consolidated Plan Budget, which includes Community Development Block Grant (“CDBG”) grant funds from the U.S. Department of Housing and Urban Development (“HUD”) in the amount of $13,144,689, of which $800,000. remains available for non-profit public facility improvement projects by Resolution No. 25-1185.
On December 4, 2025, Budget and Management Services (“BMS”) solicited and received proposals in response to a Notice of Funding Availability (“NOFA”) (BMS-2026-0002923) for CDBG non-profit public facility improvement funding. The NOFA focused on facilities within the city limits of Dallas that provide public services to low- and moderate-income residents of Dallas. Four proposals were received. First Presbyterian Church of Dallas, dba The Stewpot, submitted a proposal requesting support for the rehabilitation of new medical facilities within the property located at 1610 South Malcolm X Boulevard, Dallas, Texas 75226.
The Stewpot partners with Parkland Health + Hospital System’s Homeless Outreach Medical Services (HOMES) Program and Metrocare Services to bring comprehensive, no-cost, barrier-free medical, dental, and psychiatric services to individuals experiencing homelessness in Dallas. With fifty years of service, The Stewpot provides essential support including Neighbor Services, Housing Services, daily meals through the Nutrition Program, Food Pantry and Food Recovery Program, and Children, Youth, and Family Program. The Stewpot serves as a trusted access point for vulnerable residents seeking stability, resources, and long-term self-sufficiency.
The proposed project will significantly expand The Stewpot’s capacity to provide comprehensive, no-cost, barrier-free medical, dental, and psychiatric services for individuals experiencing homelessness by renovating approximately 2,488 square feet of new medical facilities within the footprint of the Medical Partners Building, including one X-ray room, one bathroom, one nurse station, one consult room, three exam rooms, four dental bays, and an interior slab sawcut/trench of approximately 600 linear feet for water/waste utilities. Once completed, the facility will strengthen the City’s homeless response system by expanding access to essential, integrated medical services for individuals experiencing homelessness and creating a more effective continuum of care.
Eligible projects costs will include development fees, permits, appraisal costs, architectural and engineering services, demolition, inspections, specialty design services, and necessary site improvements.
Federal CDBG regulations require that any facility rehabilitated with CDBG funds must continue to operate for the same eligible purpose for at least five years after project completion. To ensure compliance, the agreement with The Stewpot will be structured as a zero-percent interest, forgivable loan secured by a deed of trust and five-year deed restrictions. These restrictions will remain in place until the City verifies that the facility has continuously operated for its intended purpose throughout the required performance period, after which the lien and deed restrictions will be released.
A five-member committee from the following departments reviewed and evaluated the applications:
• Office of Housing and Community Empowerment (1)
• Dallas Water Utilities Department (1)
• Department of Code Compliance (1)
• Department of Facilities and Real Estate Management (1)
• Budget and Management Services (1)
The committee selected the successful applicant on the basis of demonstrated competence and qualifications under the following criteria:
• Experience and Qualifications 27 points
• Financial Capacity and Budget Costs Reasonableness 28 points
• Approach and Methodology 30 points
• Commitment to Policies that Enhance Community Impact 15 points
As part of the solicitation process and in an effort to increase competition, BMS used the City’s procurement system, Bonfire, to send out email notifications to vendors registered under relevant commodity codes. BMS also published public notice of the NOFA in the Dallas Morning News on December 4, 2025, and December 11, 2025.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On August 6, 2025, the City Council adopted the FY 2025-26 Consolidated Plan Budget for the U.S. Department of Housing and Urban Development grant funds, by Resolution No. 25-1185
On April 23, 2026, the Community Development Commission’s Public Improvements Committee was briefed regarding this matter.
On May 7, 2026, the Community Development Commission was briefed regarding this matter.
FISCAL INFORMATION
|
Fund |
FY 2026 |
FY 2027 |
Future Years |
|
FY 2025-26 CDBG Reprogramming No. 2 Fund |
$800,000.00 |
$0.00 |
$0.00 |
OWNER/EXECUTIVE
First Presbyterian Church of Dallas, Texas dba The Stewpot
Brenda Snitzer, Executive Director