STRATEGIC PRIORITY: Growing
AGENDA DATE: May 14, 2025
COUNCIL DISTRICT(S): Citywide
DEPARTMENT: Department of Housing and Community Development
EXECUTIVE: Robin Bentley
______________________________________________________________________
SUBJECT
Title
Authorize (1) an amendment to Resolution No. 19-1495, previously approved on September 25, 2019, for the use of bond funds on legal services provided to the Dallas Housing Acquisition and Development Corporation (DHADC); (2) an amendment to Resolution No. 19-1497, previously approved on September 25, 2019, for the use of bond funds on environmental services provided to the DHADC; to revise the use of funds originally allocated under these resolutions (Funds) to include land acquisitions and other eligible acquisition, environmental, and legal costs to further the City’s public purpose of increasing affordable single-family homeownership opportunities; (3) to allow disbursement of the Funds directly to the DHADC; (4) the disbursement of funds in an amount not to exceed $536,500.00 to the DHADC from the Economic and Southern Area Transit-Oriented Development Fund; and (5) the establishment of appropriations in an amount not to exceed $1,000,000.00 to the DHADC from the Mixed Income Housing Development Bonus Fund for costs related to Urban Land Bank Demonstration Program management, administration, and fees - Not to exceed $1,536,500.00 - Financing: Economic and Southern Area Transit-Oriented Development Fund (2006 General Obligation Fund) ($536,500.00) and Mixed Income Housing Development Bonus Fund ($1,000,000.00)
Body
BACKGROUND
The Urban Land Bank Demonstration Program Act was enacted on June 18, 2003, and is codified in the Texas Local Government Code Chapter 379C. The primary objective of the Urban Land Bank Demonstration Program (Program) is to acquire unproductive, vacant, and developable parcels of real property and parcels improved with abandoned, vacant, and uninhabitable structures for affordable housing or commercial development.
The DHADC is an instrumentality of the City and has been designated by the City to administer the Program on its behalf. On January 28, 2004, the City Council designated the DHADC as its land bank for the purpose of acquiring, holding, and transferring unimproved real property under Subtitle A, Title 12, Local Government Code, Chapter 379C by Resolution No. 04-0458. The acquisition of unproductive parcels will enable the DHADC to facilitate the development of new single-family homeownership units, multifamily rental units, and lease-purchase units on the parcels to house low-and moderate-income households, and on appropriate parcels, allow commercial development that will complement the City’s affordable housing strategy.
These existing funds authorized by Resolution Nos. 19-1495 and 19-1497 will be used to pay Linebarger Goggan Blair & Sampson, LLP (Linebarger) and Terracon Consultants, Inc. (Terracon) for services and other uses including acquisitions and associated costs. This extension of funds and additional funds are needed to continue acquisitions and associated costs to continue business and build self-sufficiency to the DHADC. The DHADC is currently under a fee-study review to right-size sales prices for the lots in the Land Bank and Land Transfer Program.
The additional funds of $1,000,000.00 will come from the Mixed Income Housing Development Bonus (MIHDB) program that was developed to incentivize affordable housing development through various zoning bonuses. The MIHDB program fees and fees in-lieu of affordable housing are added to the MIHDB Fund and intended to be used to produce and preserve affordable housing, further equity, and promote strong communities.
These funds will be used to cover costs associated with Program administration, property acquisitions, and other related expenses. This disbursement aligns with the MIHDB program's goal of supporting the development and preservation of affordable housing within the city, ensuring that resources are effectively utilized to achieve these objectives.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On September 12, 2018, the City Council authorized the City Manager to appropriate up to $1,500,000.00 in 2006 General Obligation Bond Funds to the Urban Land Bank Demonstration Program for capital costs related to acquisition and disposition of unimproved, tax-foreclosed, real property for the development of affordable housing or other commercial purposes by Resolution No. 18-1287.
On September 25, 2019 the City Council authorized the DHADC to enter into a one-year contract commencing on October 1, 2019, with four one-year renewal options with Linebarger to provide legal services related to the acquisition and sale of up to 300 lots sought to be acquired by DHADC during the one-year term of the contract and up to the same number of lots for each subsequent renewal in an amount not to exceed $600,000.00 annually from the Economic and Southern Area Transit-Oriented Development Fund by Resolution No. 19-1495.
On September 25, 2019, the City Council authorized the DHADC to enter into a one-year contract commencing on October 1, 2019, with four one-year renewal options with Terracon in the amount of $510,000.00 annually from the Economic and Southern Area Transit-Oriented Development Fund for environmental services related to the acquisition and sale of up to 300 land bank lots acquired by the DHADC during the one-year term of the contract and up to the same number of lots for each subsequent renewal by Resolution No. 19-1497.
On March 27, 2019, the City Council authorized the creation of the Mixed Income Housing Development Bonus, by Resolution Nos. 19-0429 and 19-0460 and Ordinance Nos. 31142 and 31152.
On May 11, 2022, the City Council amended the Mixed Income Housing Development Bonus Fund to add additional development bonus options, a fee-in-lieu of on-site provision to fulfill requirements of the bonus, establish the Mixed Income Housing Development Fund, and clarified administrative procedures and definitions of MIHDB program, by Resolution Nos. 22-0743, 22-0744, and 22-0767 and Ordinance Nos. 32195 and 32210.
The Housing and Homelessness Solutions Committee was briefed by memorandum regarding this matter on September 23, 2024. <https://cityofdallas.legistar.com/View.ashx?M=F&ID=13322508&GUID=BCCD67CF-70A1-4BDD-B8E2-F193A50BC44F>
FISCAL INFORMATION
|
Fund |
FY 2025 |
FY 2026 |
Future Years |
|
Economic and Southern Area Transit - Oriented Development 2006 General Obligation Bond Fund |
$ 536,500.00 |
$0.00 |
$0.00 |
|
Mixed Income Housing Development Bonus Fund |
$1,000,000.00 |
|
|
|
Total |
$1,536,500.00 |
$0.00 |
$0.00 |