PILLAR: Vibrant
AGENDA DATE: February 11, 2026
COUNCIL DISTRICT(S): 2
DEPARTMENT: Office of Housing and Community Empowerment
PRIORITY: N/A
______________________________________________________________________
SUBJECT
Title
Authorize the Dallas Public Facility Corporation to (1) acquire, develop, and own Mockingbird Corner, a mixed-income, multifamily development to be located at 1241 West Mockingbird Lane, Dallas, Texas 75247 (Project); and (2) enter into a seventy-five-year lease agreement with GHN Holdings, LLC or its affiliate, for the development of the Project - Estimated Revenue Foregone: General Fund: $6,174,833.65 (see Fiscal Information)
*In alignment with Dallas Housing Resource Catalog.
Body
BACKGROUND
The City of Dallas (City) is authorized by the Public Facility Corporation Act, Chapter 303 of the Texas Local Government Code, as amended (the Act) to create a Public Facility Corporation for the purposes established in the Act, including the financing, acquisition, construction, and leasing of public facilities under the Act. On June 24, 2020, by Resolution No. 20-1035, the City Council authorized the creation of the Dallas Public Facility Corporation (Corporation) pursuant to the Act to further the public purposes stated in the Corporation’s Articles of Incorporation and Bylaws, which were subsequently amended by Resolution No. 22-1194 (Bylaws). Section 6.2 of the Corporation’s Bylaws requires City Council approval by written resolution prior to entering into any agreement that would result in a property tax exemption. Per Section 7.3 of the Bylaws, any public facility related to multifamily residential development of the Corporation shall not proceed unless (1) the development of the public facility could not be feasible but for the Corporation’s participation, and (2) the development of the public facility is in furtherance of the City of Dallas’ Comprehensive Housing Policy which has been replaced by the Drivers of Opportunity Policy Framework and the Dallas Housing Resource Catalog (DHRC), as amended.
GHN Holdings, LLC. (Applicant), a Texas limited liability company, submitted an application to the Corporation for the development of Mockingbird Corner, a 275-unit mixed income multifamily development to be located at Project. The Project is not located within any Tax Increment Financing (TIF) District or Public Improvement District (PID). The development is a new construction project and the Corporation will own the site and improvements and lease the Project back to the Applicant or its affiliate. Pursuant to the Act, any public facility owned by a public facility corporation is exempt from all ad valorem taxes. To qualify as a public facility pursuant to the Act, a multifamily property must reserve at least 40% of the units for residents earning at or below 80% of the Area Median Income (AMI) and at least 10% of the units for residents earning at or below 60% of the AMI. The Project will reserve 10% of the units at or below 60% AMI, 40% of the units at or below 80% AMI and the remaining units will be at a fair market rate.
On December 2, 2025, the DPFC Board of Directors adopted a resolution authorizing the negotiation and execution of a term sheet for Mockingbird Corner in partnership with GHN Holdings, LLC. The Applicant is a limited liability company. This Applicant is Texas-based with real estate development experience. GHN Holdings, LLC. company leadership has participated in housing development in all major Texas cities: Dallas, Houston, Austin, Fort Worth, and San Antonio.
The Project will be located at the North-East corner of the intersection of North Stemmons Fwy. and West Mockingbird Ln. on 3.3 acres that is currently a vacant lot. Once acquired, the developer will be required to secure the property no more than 60 days after closing and provide security until completion of the project. Amenities will include a pool, fitness center, co-working space, clubhouse and accessibility to Dallas Area Rapid Transit bus stops. The Project is zoned for multifamily development without any opposition. The Applicant will work with the Office of Emergency Management and Crisis Response throughout the planning and design process for security input, community activities, and incorporate best practices of Crime Prevention through Environmental Design.
The anticipated unit mix and rental rates are as follows:
|
Unit Type |
AMI |
Units |
Rent |
|
Efficiency |
60% |
4 |
$1,233.00 |
|
Efficiency |
80% |
17 |
$1,603.00 |
|
Efficiency |
Market |
21 |
$1,674.00 |
|
1BR |
60% |
17 |
$1,408.00 |
|
1BR |
80% |
66 |
$1,749.00 |
|
2BR |
Market |
82 |
$1,884.00 |
|
2BR |
60% |
7 |
$1,584.00 |
|
2BR |
80% |
27 |
$2,112.00 |
|
2BR |
Market |
34 |
$2,681.00 |
Reserving units for individuals and families earning between 60% and 80% AMI provides affordable housing for the “missing middle” of the housing market: residents that earn above low-income housing tax credit income restrictions of 60% AMI but would be cost-burdened by market rents. Household incomes between 60% AMI and 80% AMI range from approximately $49,320.00 to $65,700.00 for an Individual and increase based on family size and reflect average incomes for a variety of employment sectors, such as teachers, first responders, government employees, and health care providers. The rents for individuals and families earning at or below 60% AMI are included to provide deeper affordability at this property with incomes starting at $49,320.00 for an individual and increasing depending on family size.
Total development costs are anticipated to be approximately $57,779,687.00 which includes the acquisition price for the land. The development budget less soft/financial costs is anticipated to be approximately $49,243,429.00 which is $179,067.01 per unit.
|
Proposed Financing Sources |
Amount |
|
Mortgage Loan |
$40,445,000.00 |
|
Developer/Investor Equity |
$17,334,687.00 |
|
Total |
$57,779,687.00 |
|
Proposed Uses |
Amount |
|
Development Costs |
$40,200,110.00 |
|
Land Acquisition |
$ 7,837,315.00 |
|
Soft Costs/Other Costs |
$ 8,536,258.00 |
|
Contingency |
$ 1,206,004.00 |
|
Total |
$57,779,687.00 |
The Project will be owned by the DPFC and leased to the Applicant and /or its affiliate(s) other potential owners for a period of 75 years. In consideration for the DPFC’s participation in the Project, the DPFC is estimated to receive $113,715,454.00 in revenues and rental savings over 60 years of the lease which includes $30,744,963.00 in fee payments to the DPFC and $83,020,518.00 solely attributable to rent savings directly to residents. Potential proceeds to the DPFC include (1) a $300,000.00 structuring fee paid at closing; (2) lease payments starting at $205,583.00 and increasing by 3% annually upon stabilization; (3) 2.5% of gross profits after repayment of debt, equity, and preferred equity returns upon first capital event of the Project; and (4) 2% of gross profits on all future capital events. In the event of a sale during the life of the Project, DPFC will continue to receive the annual lease payments. Upon completion of the lease, DPFC will own the Project free and clear.
The Corporation and its counsel and financial advisors have confirmed that this Project would not be feasible but for the Corporation’s participation and that the Project furthers the goals of the Dallas Housing Resource Catalog. The Corporation’s Board recommends approval of this item to allow this mixed-income housing development to move forward.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On December 2, 2025, the Dallas Public Facility Corporation Board of Directors approved the negotiation and execution of a term sheet with the Applicant.
The Housing and Homelessness Solutions Committee was briefed by memorandum regarding this matter on February 3, 2026. <https://cityofdallas.legistar.com/View.ashx?M=F&ID=15131302&GUID=0D38139F-C3F0-48B4-8573-30E0562DBFA9>
The Housing and Homelessness Solutions Committee was briefed by memorandum regarding this matter on February 10, 2026. <https://dallascityhall.com/government/citymanager/Documents/Council%20Materials/26-256A.pdf>
FISCAL INFORMATION
Estimated Revenue Foregone: General Fund $6,174,833.65.
An estimate of the tax revenue the City of Dallas is projected to forgo is shown on Attachment A. These projections are based on the current taxable value of the property, the anticipated value if the project were possible to be built as a market-rate project. Please note that the estimated taxes foregone is a speculative number and not a representation of actual taxes currently due to the city. For DPFC projects, the values are calculated by DPFC underwriter at this time.
MAP
Attached