PILLAR: Vibrant
AGENDA DATE: August 12, 2026
COUNCIL DISTRICT(S): 12
DEPARTMENT: Office of Housing and Community Empowerment
PRIORITY: N/A
______________________________________________________________________
SUBJECT
Title
Authorize the Dallas Public Facility Corporation to (1) acquire, develop, and own DNT Housing, a 350-unit workforce housing community located at 18438 and 18470 Dallas Parkway, Dallas, Texas 75287 (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 $10,961,950.48 (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 under the Act. 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 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the development of the public facility is in furtherance of the City of Dallas’ Comprehensive Housing Policy which has been replaced by the Dallas Housing Resource Catalog (DHRC), as amended.
On April 12, 2023, by Resolution No. 23-0444, the City Council adopted the Dallas Housing Resource Catalog (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, the 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 projects that seek City support. 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%, in Council District 12. The Project is located in census tract 78.22, which has a 23.4% poverty rate. As discussed below the fair housing rating is low positive.
GHN Holdings, LLC (together with its affiliates, the Applicant), a Texas limited liability company, submitted an application to the Corporation for the development of DNT Housing, a 350-unit new construction multifamily development to be located 18438 and 18470 Dallas Parkway, Dallas, Texas 75287 (Project). The Project is not located within any Tax Increment Financing District or Public Improvement District. The development is a new construction project, and the Corporation will own the site and improvements and lease the Project back to the Applicant and/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 40.0% of the units for residents earning at or below 80.0% of the Area Median Income (AMI) and at least 10.0% of the units for residents earning at or below 60.0% of the AMI. The Project will reserve 10.0% of the units at or below 60.0% AMI, 40.0% of the units at below 80.0% AMI, and the remaining 50.0% of the units will be at a fair market rate without income restrictions.
On May 26, 2026, the DPFC Board of Directors adopted a resolution authorizing the negotiation and execution of a term sheet for DNT Housing in partnership with GHN Holdings, LLC. The Applicant is a Texas-based limited liability company GHN Holdings, LLC (Applicant), specializes in the development of mixed-income multifamily housing communities and public-private partnership developments throughout Texas. The Company’s leadership has experience partnering with public facility corporations and housing agencies, including the Dallas Public Facility Corporation, San Antonio Housing Trust, and Housing Authority of Travis County, and has participated in multiple approved workforce housing developments utilizing PFC structures.
The Project will be located at 18438 and 18470 Dallas Parkway. The approximately 5.4-acre subject property is currently improved with one (1) commercial building (18438 Dallas Parkway) and one (1) commercial hotel building (18470 Dallas Parkway). Additionally, the subject property appears improved with paved parking areas and driveways. The commercial building (18438 Dallas Parkway) and commercial hotel building (18470 Dallas Parkway) are currently vacant. Once closed, the developer will be required to secure the property no more than 60 days after closing and provide security until completion of the project. Community features include on-site management, club room, fitness center, and co-working hub. Additionally, there will be an amenity courtyard that includes a pool. Maintenance services will be provided with leasing office and agents available by phone/email at the neighborhood office. Mailroom and package lockers are located on the first floor. Electronic access and security are available to every tenant. Each unit will have internet and streaming services available. 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 |
60.0% |
4 |
$1,233.00 |
|
Efficiency |
80.0% |
14 |
$1,603.00 |
|
Efficiency |
Market |
17 |
$1,728.00 |
|
1BR |
60.0% |
22 |
$1,408.00 |
|
1BR |
80.0% |
88 |
$1,749.00 |
|
1BR |
Market |
109 |
$1,965.00 |
|
2BR |
60.0% |
8 |
$1,584.00 |
|
2BR |
80.0% |
35 |
$2,112.00 |
|
2BR |
Market |
44 |
$2,719.00 |
|
3BR |
60.0% |
1 |
$1,759.00 |
|
3BR |
80.0% |
4 |
$2,346.00 |
|
3BR |
Market |
4 |
$3,000.00 |
Reserving units for individuals and families earning between 60.0% and 80.0% AMI provides affordable housing for households that earn above the low-income housing tax credit income limit of 60.0% 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 and increase with family size and reflect average incomes across a variety of employment sectors, such as teachers, first responders, government employees, and health care providers.
Total development costs are anticipated to be approximately $81,020,402.00, which includes the acquisition price for the land. The development budget less soft/financial costs is anticipated to be approximately $70,361,300.00 which is $201,032.29 per unit.
The proposed financing sources and uses are as follows:
|
Proposed Financing Sources |
Amount |
|
Mortgage Loan |
$56,714,281.00 |
|
Developer/Investor Equity |
$24,306,121.00 |
|
Total |
$81,020,402.00 |
|
Proposed Uses |
Amount |
|
Development |
$51,486,300.00 |
|
Land Acquisition Cost |
$17,350,000.00 |
|
Soft Costs/Other Costs |
$10,659,102.00 |
|
Contingency |
$ 1,525,000.00 |
|
Total |
$81,020,402.00 |
City staff reviewed the Project for alignment with the DHRC and confirmed the following:
|
Development/Area Characteristics |
Result |
|
2020 Census Tract Poverty Rate |
23.4% |
|
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 approximately $171,621,738.00 in revenues and rental savings, including $38,113,439.00 in fee payments to the DPFC and $133,508,299.00 in rent savings directly to residents. Potential proceeds to the DPFC include (1) a $350,000.00 structuring fee paid at closing; (2) lease payments starting at $255,235.00 and increasing by 3.0% annually upon stabilization; (3) 15.0% of net sale proceeds upon first capital event, and (4) 2.0% of gross profits on all future capital events. In the event of a sale during the Project's lifetime, DPFC will continue to receive annual lease payments. Upon completion of the lease, DPFC will own the Project free and clear.
DPFC revenues will support DPFC operations and be reinvested in attainable housing. The Project results in foregone City tax revenue while the DPFC owns the asset. The current tax bill is $189,422.46, with a 60-year estimate of $72,915,862.00 in foregone taxes. However, the workforce housing rental savings of $133,508,299.00 over 60 years and the estimated $38,113,439.00 in Project revenues provide the City with $98,705,876.00 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 May 26, 2026, the Dallas Public Facility Corporation Board of Directors approved the negotiation and execution of a term sheet with the Applicant.
The City Council was briefed by memorandum regarding this matter on August 7, 2026. <https://dallascityhall.com/government/citymanager/Documents/FY25-26%20Memos/Office%20of%20Housing%20and%20Community%20Empowerment%20Upcoming%20Agenda%20Items.pdf>
FISCAL INFORMATION
Estimated Revenue Foregone: General Fund $10,961,950.48 (for 60 years).
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 Foregone |
|
|
Current Year |
Year 15 |
Year 60 |
Year 15 |
Year 60 |
|
1-COD |
$ 67,229.19 |
$1,250,389.92 |
$10,961,950.48 |
$ 7,487,142.00 |
$ 72,915,862.00 |
|
2-Collin County |
$ 14,367.79 |
$ 267,225.29 |
$ 2,342,717.54 |
$ 1,600,103.00 |
$ 15,583,105.21 |
|
3-Collin College |
$ 7,813.90 |
$ 145,330.05 |
$ 1,274,083.25 |
$ 870,214.00 |
$ 8,474,851.67 |
|
4-Plano ISD |
$100,011.59 |
$1,860,106.95 |
$16,307,233.47 |
$11,138,035.00 |
$108,471,213.16 |
MAP
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