City of Dallas - File #: 25-2955A

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PILLAR: Vibrant

AGENDA DATE: November 12, 2025

COUNCIL DISTRICT(S): 2

DEPARTMENT: Office of Housing and Community Empowerment

PRIORITY: Neighborhood Revitalization

______________________________________________________________________

SUBJECT

Title

Authorize the Dallas Public Facility Corporation to (1) acquire, develop, and own Good Homes Dallas, a mixed-income, multifamily development to be located at 6950 North Stemmons Freeway, Dallas Texas 75247 (Project); and (2) enter into a seventy-five-year lease agreement with Good Homes Communities, LLC or its affiliate, for the development of the Project - Estimated Revenue Forgone: General Fund: $16,837,803.00 (see Fiscal Information)

*In alignment with Dallas Housing Policy 2033.

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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 the 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the development of the public facility is in furtherance of the City of Dallas’ Comprehensive Housing Policy which has been replaced by the Dallas Housing Policy 2033 (DHP33) and the Dallas Housing Resource Catalog (DHRC), as amended.

Good Homes Communities, LLC. (Applicant), a Delaware limited liability company, submitted an application to the Corporation for the development of Good Homes Dallas, a 142-unit mixed income multifamily development to be located at 6950 North Stemmons Freeway, Dallas, Texas 75247 (Project). The Project is not located within any Tax Increment Financing (TIF) District or Public Improvement District (PID). The development is a rehabilitation of an extended stay hotel 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 5% of the units at or below 30% AMI, 10% of the units at or below 50% AMI, 45% of the units at or below 60% AMI, 25% of the units at or below 80% AMI and the remaining units will be at a fair market rate.

On June 24, 2025, the DPFC Board of Directors adopted a resolution authorizing the negotiation and execution of a term sheet for Good Homes Dallas in partnership with Good Homes Communities, LLC. The Applicant is a limited liability company. This Applicant is Delaware - based with real estate development experience. In the last 3 years they have developed 12 multifamily projects across the nation with a $310,400,000.00 footprint.

The Project will be located at the South-East corner of the intersection of North Stemmons Freeway and Interstate 35E on 3.6 acres that is currently an extended stay Sonesta Hotel. 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 dog park, basketball court, a pool, and a fitness center and are accessible 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
1BR	30%	5	$ 659.00
1BR	50%	10	$1,099.00
1BR	60%	49	$1,319.00
1BR	80%	27	$1,375.00
1BR	Market	16	$1,375.00
2BR	30%	2	$ 792.00
2BR	50%	4	$1,320.00
2BR	60%	15	$1,584.00
2BR	80%	9	$1,650.00
2BR	Market	5	$1,650.00

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. The rents for individuals and families earning at or below 50% AMI are included to provide deeper affordability at this property with incomes starting at $41,100.00 for an individual and increasing depending on family size. The rents for individuals and families earning at or below 30% AMI are included to provide deeper affordability at this property with incomes starting at $24,650.00 for an individual and increasing depending on family size.

Total development costs are anticipated to be approximately $18,456,466.00 which includes the acquisition price for the land. The development budget less soft/financial costs is anticipated to be approximately $3,067,166.00, which is $21,599.77 per unit.

Proposed Financing Sources	Amount
Mortgage Loan	$12,000,000.00
Developer/Investor Equity	$ 6,456,466.00
Total	$18,456,466.00
Proposed Uses	Amount
Development Costs	$ 3,539,666.00
Land Acquisition	$11,600,000.00
Soft Costs/Other Costs	$ 2,766,800.00
Contingency	$ 550,000.00
Total	$18,456,466.00

The Project will be owned by the DPFC and leased to the Applicant and 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 $1,223,217.00 in revenues over the 75 years of the lease. Potential proceeds to the DPFC include (1) a $200,000.00 structuring fee paid at closing; (2) lease payments starting at $25,000.00 and increasing by 2% annually upon stabilization; (3) 2% 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 75-year 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 DHP33. 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 June 24, 2025, the Dallas Public Facility Corporation Board of Directors approved the negotiation and execution of a term sheet with the Applicant.

FISCAL INFORMATION

The following is an estimate of the tax revenue the City of Dallas is projected to forgo. These projections are based on the current taxable value of the property, the anticipated value of the project upon completion, and the expected taxes on the future assessed value. For DPFC projects, the values are calculated by DPFC underwriter at this time.

Taxing Entity	Actual Taxes			Estimated Taxes Forgone
	Current Year	Year 15	Year 60	Year 15	Year 60
COD	$62,659.25	$1,165,393.99	$10,216,806.06	$1,807,284.96	$16,837,802.61
Dallas ISD	$88,670.35	$1,649,172.20	$14,458,005.31	$2,557,525.03	$23,827,510.87
Dallas County	$ 9,161.44	$ 356,381.97	$ 3,124,338.65	$ 552,674.73	$ 5,149,065.21
Dallas College	$ 9,389.11	$ 174,627.25	$ 1,530,926.65	$ 270,810.69	$ 2,523,042.58
Parkland Hospital	$18,850.23	$ 350,593.80	$ 3,073,594.79	$ 543,698.57	$ 5,065,437.77

MAP

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