PILLAR: Vibrant
AGENDA DATE: September 9, 2026
COUNCIL DISTRICT(S): 6
DEPARTMENT: Office of Housing and Community Empowerment
PRIORITY: N/A
______________________________________________________________________
SUBJECT
Title
Authorize the Dallas Public Facility Corporation to (1) acquire, develop, and own Trinity West Villas, a 36-unit mixed-income multifamily development to be located at 3457 Normandy Brook Road, Dallas, Texas 75212, and Trinity West Lofts, a 100-unit mixed-income multifamily development to be located at 3155 Normandy Brook Road, Dallas, Texas 75212 (together, the Project); and (2) enter into a 75-year lease agreement with Builders of Hope CDC or its affiliate, for the development of the Project - Estimated Revenue Foregone: General Fund $1,488,374.60 to the City (for 60 years; 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.
On June 24, 2020, by Resolution No. 20-1035, the City Council authorized the creation of the Dallas Public Facility Corporation (DPFC or 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the development of the public facility is in furtherance of the City of Dallas’ Comprehensive Housing Policy which has been replaced by the Dallas Housing Resource Catalog (DHRC), as amended.
On April 12, 2023, by Resolution No. 23-0444, City Council adopted the DHRC, which contains the approved city-supported housing programs, corporations, funding, and compliance tools, used to develop and maintain mixed-income housing through the Office of Housing and Community Empowerment (OHCE).
On April 22, 2026, by Resolution No. 26-0742, City Council authorized an amendment to the DHRC and the program statement for the DPFC, which establishes a clearer and more consistent process for reviewing DPFC projects that seek City Council approval. Additionally, the amendment requires the Corporation to prioritize new construction of mixed-income housing in areas with poverty rates greater than 20.0%, areas with higher-than-average appraised values of real estate as compared to the city-wide values, or in designated high-opportunity areas with poverty rates below 20.0%.
This Project advances this priority by developing new housing units in an area with a poverty rate greater than 20.0%. The Project is located in census tract 205.00 in Council District 6, which has a poverty rate of 27.2%. The fair housing rating is Low Positive.
Builders of Hope CDC (Applicant), a Texas nonprofit corporation, submitted an application to the Corporation for the development of Trinity West Villas, a 36-unit mixed-income multifamily development to be located at 3457 Normandy Brook Road, Dallas, Texas 75212, and Trinity West Lofts, a 100-unit mixed-income multifamily development to be located at 3155 Normandy Brook Road, Dallas, Texas 75212 (together, the Project). The Project is not located within a Tax Increment Financing District or Public Improvement District. The Corporation will own the site and improvements and lease the Project 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. The Project will reserve 10.0% of the units for households earning at or below 50.0% of area median income (AMI), approximately 9.0% of the units for households earning at or below 60.0% of AMI, 4.0% of the units for households earning at or below 65.0% of AMI, approximately 29.0% of the units for households earning at or below 80.0% of AMI, and approximately 13.0% of the units for households earning at or below 120.0% of AMI. The remaining 35.0% of the units will be offered at fair market rates without income restrictions.
On July 28, 2026, the DPFC Board of Directors adopted a resolution authorizing the negotiation and execution of a term sheet for the Project in partnership with the Applicant. The Applicant is a Texas-based nonprofit corporation that specializes in the development of mixed-income multifamily housing communities and public-private partnership developments throughout Dallas-Fort Worth.
The anticipated unit mixes and rental rates for Trinity West Villas and Trinity West Lofts are as follows:
Trinity West Villas
|
Unit Type |
AMI |
Units |
Rent |
|
Efficiency |
60.0% |
1 |
$1,233.00 |
|
Efficiency |
80.0% |
5 |
$1,426.00 |
|
Efficiency |
120.0% |
6 |
$1,426.00 |
|
1BR |
Low HOME (50% AMI) |
1 |
$ 912.00 |
|
1BR |
High HOME (65% AMI) |
1 |
$1,222.00 |
|
1BR |
80.0% |
1 |
$1,500.00 |
|
1BR |
120.0% |
3 |
$1,500.00 |
|
2BR |
Low HOME (50.0% AMI) |
1 |
$1,045.00 |
|
2BR |
High HOME (65.0% AMI) |
3 |
$1,419.00 |
|
2BR |
(120.0% AMI) |
2 |
$1,758.00 |
|
3BR |
Low HOME (50.0% AMI) |
1 |
$1,116.00 |
|
3BR |
High HOME (65.0% AMI) |
2 |
$1,540.00 |
|
3BR |
80.0% |
3 |
$2,212.00 |
|
3BR |
120.0% |
6 |
$2,212.00 |
Trinity West Lofts
|
Unit Type |
AMI |
Unis |
Rent |
|
Efficiency |
50.0% |
1 |
$1,027.00 |
|
Efficiency |
60.0% |
1 |
$1,233.00 |
|
Efficiency |
80.0% |
3 |
$1,603.00 |
|
Efficiency |
Market |
5 |
$1,674.00 |
|
1BR |
50.0% |
6 |
$1,173.00 |
|
1BR |
60.0% |
6 |
$1,408.00 |
|
1BR |
80.0% |
17 |
$1,749.00 |
|
1BR |
Market |
28 |
$1,884.00 |
|
2BR |
50.0% |
3 |
$1,320.00 |
|
2BR |
60.0% |
3 |
$1,584.00 |
|
2BR |
80.0% |
8 |
$2,112.00 |
|
2BR |
Market |
11 |
$2,681.00 |
|
3BR |
50.0% |
1 |
$1,466.00 |
|
3BR |
60.0% |
1 |
$1,759.00 |
|
3BR |
80.0% |
2 |
$2,310.00 |
|
3BR |
Market |
4 |
$2,875.00 |
A Low HOME eligible household is a tenant household whose annual income, adjusted for family size, does not exceed 50.0% AMI. A High HOME eligible household is a tenant household whose annual income, adjusted for family size, does not exceed 65.0% of AMI.
Reserving units for individuals and families earning between 60.0% and 80.0% of AMI provides affordable housing for households that earn above the low-income housing tax credit income limit of 60.0% of AMI but would be cost-burdened by market rents. Household incomes between 60.0% and 80.0% of AMI range from approximately $49,320.00 to $65,700.00 for an individual, increase with family size, and reflect incomes across a variety of employment sectors, including teachers, first responders, government employees, and health care providers.
Total development costs are anticipated to be approximately $28,141,898.00, including the acquisition price for the land. The development budget, less soft and financial costs, is anticipated to be approximately $24,541,239.00, or $180,450.29 per unit.
The proposed financing sources and uses are as follows:
|
Proposed Financing Sources |
Amount |
|
Mortgage Loan |
$ 17,406,467.00 |
|
Developer/Investor Equity |
$ 620,748.00 |
|
NSP/HOME Funds |
$ 1,906,419.00 |
|
TREC Grant |
$ 250,000.00 |
|
Additional Equity |
$ 7,958,264.00 |
|
Total |
$ 28,141,898.00 |
|
|
|
|
Proposed Uses |
Amount |
|
Construction |
$ 20,266,200.00 |
|
Land Acquisition Cost |
$ 2,250,000.00 |
|
Soft Costs/Other Costs |
$ 5,625,698.00 |
|
Total |
$ 28,141,898.00 |
City staff reviewed the Project for alignment with the DHRC and confirmed the following:
|
Development/Area Characteristics |
Result |
|
2020 Census Tract Poverty Rate |
27.2% |
|
Designated High Opportunity Area |
No |
|
Appraisal Values Higher than City-wide Values |
Yes |
|
Construction Type |
New Construction |
The Fair Housing rating for the Project is Low Positive. The City uses the Fair Housing Review Worksheet to assess projects based on measurable factors, including poverty levels, opportunity indicators, income mix, accessibility standards issued under the Americans with Disabilities Act, anti-displacement efforts, resident services, and outreach. Each project receives an overall impact rating from High Positive to High Negative, showing how it supports fair housing goals. To receive City support, a project must earn a neutral or positive rating, demonstrating that it promotes fair housing and inclusive, stable communities.
The Project will be owned by the DPFC and leased to the Applicant and other potential owners for 75 years. Over 60 years, the DPFC is estimated to receive $72,990,781.00 in revenues and rental savings, including $12,140,611.00 in fee payments to the DPFC and $60,850,170.00 in rent savings directly to residents. Potential proceeds to the DPFC include (1) a $150,000.00 structuring fee paid at closing; (2) lease payments beginning at $79,000.00 and increasing by 3.0% annually upon stabilization; (3) 2.5% of gross sale proceeds upon the first capital event; and (4) 2.0% of the gross sales price on all future capital events. In the event of a sale during the Project’s lifetime, the DPFC will continue to receive annual lease payments. Upon completion of the lease, the DPFC will own the Project free and clear.
DPFC revenues will support DPFC operations and be reinvested in attainable housing. The Project will result in foregone City tax revenue while the DPFC owns the asset. The current City of Dallas tax bill is $9,128.00, with an estimated $25,312,616.00 in foregone City taxes over 60 years. However, the estimated workforce housing rental savings of $60,850,170.00 and Project revenues of $12,140,611.00 provide the City with an estimated $72,990,781.00 in benefits that outweigh the foregone revenue.
The DPFC’s estimated revenues were calculated by DPFC’s partnership counsel and financial advisors. Market rent comps and current construction costs were analyzed to ensure the project costs are reasonable for the market. DPFC financial advisors have also confirmed that, but for the ad valorem tax exemption, the Project would not be economically feasible. Also, the DPFC’s revenue consideration and affordability levels have been analyzed to confirm that the ad valorem tax exemption does not over-subsidize the Project.
The DPFC Board, legal counsel, and financial advisors have confirmed that this Project would not be feasible but for the DPFC’s participation and that the Project furthers the goals of the DHRC. The DPFC Board recommends approval of this item to allow this mixed-income housing development to move forward.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On June 22, 2022, the City Council authorized the execution of a HOME development and Neighborhood Stabilization Program development loan agreement with the Applicant for Trinity West Villas, by Resolution No. 22-0948.
On July 28, 2026, the Dallas Public Facility Corporation Board of Directors adopted a resolution authorizing the negotiation and execution of a term sheet for Trinity West Villas and Trinity West Lofts in partnership with Builders of Hope CDC.
The Housing and Homelessness Solutions Committee was briefed by memorandum regarding this matter on August 24, 2026. <https://cityofdallas.legistar.com/View.ashx?M=F&ID=15798347&GUID=8A7F6445-AA40-4D5C-9D80-A7EE2C224B9F>
The City Council was briefed by memorandum regarding this matter on September 3, 2026. <https://dallascityhall.com/government/citymanager/Documents/FY25-26%20Memos/September%209,%202026,%20Office%20of%20Housing%20and%20Community%20Empowerment%20City%20Council%20Agenda%20Items.pdf>
FISCAL INFORMATION
Estimated Revenue Foregone: General Fund $1,488,374.60 for 60 years to the City.
The following is an estimate of the tax revenue the City of Dallas (COD) is projected to forgo. These projections are based on the current taxable value of the property and the anticipated value if the Project were possible to be built as a market-rate project. Please note that the amount of 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’s underwriter at this time.
|
Taxing Entity |
Actual Taxes |
Estimated Taxes Forgone |
|
|
Current Year |
Year 15 |
Year 60 |
Year 15 |
Year 60 |
|
COD |
$ 9,128.14 |
$169,773.49 |
$1,488,374.60 |
$2,586,385.61 |
$25,312,616.05 |
|
Dallas ISD |
$12,982.07 |
$241,452.40 |
$2,116,771.13 |
$3,678,363.69 |
$35,999,661.81 |
|
Dallas County |
$ 2,814.99 |
$ 52,355.76 |
$ 458,993.79 |
$ 797,604.57 |
$ 7,806,051.00 |
|
Dallas College |
$ 1,392.15 |
$ 25,892.48 |
$ 226,994.84 |
$ 394,453.38 |
$ 3,860,463.26 |
|
Parkland Hospital |
$ 2,769.27 |
$ 51,505.41 |
$ 451,538.99 |
$ 784,650.42 |
$ 7,679,270.51 |
MAP
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