PILLAR: Fiscally Sound
AGENDA DATE: January 28, 2026
COUNCIL DISTRICT(S): N/A
DEPARTMENT: Budget and Management Services
PRIORITY: N/A
______________________________________________________________________
SUBJECT
Title
Authorize (1) a secured, zero percent interest, forgivable loan agreement, approved as to form by the City Attorney, in the amount of $650,000 to Austin Street Center to provide for rehabilitation of the property located at 2929 Hickory Street, Dallas, Texas 75226 which provides the Emergency Shelter and Crisis Services Program for individuals experiencing homelessness (the “Property”), for the period from February 1, 2026 through January 30, 2027; and (2) the execution of any and all terms, conditions, and documents required by the forgivable loan agreement, approved as to form by the City Attorney - Not to exceed $650,000 - Financing: FY 2024-25 CDBG Reprogramming No. 1 Fund
*In alignment with HUD Consolidated Plan.
Body
BACKGROUND
On June 12, 2024, the City Council adopted the City’s FY 2024-25 Consolidated Plan Budget, which includes Community Development Block Grant (“CDBG”) grant funds from the U.S. Department of Housing and Urban Development (“HUD”) in the amount of $14,292,354, of which $650,000 remains available for non-profit public facility improvement projects by Resolution No. 24-0873.
On April 17, 2025, Budget and Management Services (“BMS”) solicited and received proposals in response to a Notice of Funding Availability (“NOFA”) (BMS-2025-00027618) for CDBG non-profit public facility improvement funding. The NOFA was focused on facilities within the city limits of Dallas that provide public services in the city of Dallas to low-and-moderate income residents of Dallas. Seven proposals were received. Austin Street Center submitted a proposal requesting support for the rehabilitation of its property located at 2929 Hickory Street. The proposed improvements aim to enhance the campus facilities and ensure the continued operation and effectiveness of its Emergency Shelter and Crisis Services Program.
Austin Street Center is a nonprofit organization dedicated to providing emergency shelter and essential services to some of the most vulnerable individuals experiencing homelessness in our community. As one of the largest low-barrier shelters in Dallas, it has served men ages 45 and older and women ages 18 and older since 1983. In addition to meeting immediate basic needs, Austin Street Center is deeply committed to empowering clients to regain stability, achieve independence, and secure permanent housing. The agency’s compassionate, individualized, and collaborative service model offers a range of programs designed to remove barriers, promote long-term self-sufficiency, and support each client’s journey toward a safe and sustainable place to call home.
The proposed project will significantly expand Austin Street Center’s capacity to serve Dallas’ unsheltered population by converting its underutilized 29,000-square-foot facility into a fully operational, year-round service center. Once completed, the facility will provide emergency shelter and crisis services to approximately 350 vulnerable adults annually, with a particular focus on individuals experiencing mental health challenges. The project will also strengthen the City’s crisis response system by offering law enforcement a compassionate, service-oriented alternative for individuals in need of immediate care.
Planned rehabilitation activities include structural repairs, selective demolition, roof and building system upgrades, and improvements to heating, ventilation, & air conditioning, plumbing, and electrical systems. The project will also install new interior finishes, fixtures, and furnishings, enhance Americans with Disabilities Act accessibility, and ensure full compliance with fire and life safety standards. Additional office and exam room space will be created to support more efficient and comprehensive client services. Eligible project costs will include development fees, permits, appraisals, architectural and engineering services, demolition, inspections, specialty design services, and necessary site improvements.
Federal CDBG regulations require that any facility rehabilitated with CDBG Funds must continue to operate for the same eligible purpose for at least five years after the rehabilitation is completed. To ensure full compliance, the agreement with Austin Street Center will be structured as a zero-percent interest, forgivable loan agreement secured by a deed of trust and five-year deed restrictions. These restrictions will remain in place until the rehabilitation is successfully completed, and the City verifies that the facility has continuously operated as an emergency shelter throughout the required five-year performance period, at which time the lien and deed restrictions will be released.
A five-member committee from the following departments reviewed and evaluated the applications:
• Office of Community Care and Empowerment 1 person
• Department of Transportation and Public Works 1 person
• Office of Bond and Construction Management 1 person
• Facilities and Real Estate Management 1 person
• Budget and Management Services 1 person
The committee selected the successful applicant on the basis of demonstrated competence and qualifications under the following criteria:
• Experience and Qualifications 25 points
• Financial Capacity and Budget Costs Reasonableness 25 points
• Approach and Methodology 30 points
• Community Impact 12 points
• CECAP* Related Improvement Activities 8 points
*Comprehensive Environmental and Climate Action Plan* To remain compliant with federal directives, enforcement of provisions related to CECAP improvement activities have been suspended.
As part of the solicitation process and in an effort to increase competition, BMS used the City’s procurement system (Bonfire) to send out email notifications to vendors registered under relevant commodity codes. BMS also published public notice of the NOFA in the Dallas Morning News on April 17, 2025, and April 24, 2025.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On June 12, 2024, the City Council adopted the FY 2024-25 Consolidated Plan Budget for the U.S. Department of Housing and Urban Development (HUD) grant funds, by Resolution No. 24-0873.
On November 18, 2025, the Community Development Commission’s Finance Committee was briefed regarding this matter.
On December 4, 2025, the Community Development Commission was briefed regarding this matter.
FISCAL INFORMATION
|
Fund |
FY 2026 |
FY 2027 |
Future Years |
|
FY 2024-25 CDBG Reprogramming No. 1 Fund |
$650,000.00 |
$0.00 |
$0.00 |
OWNER/EXECUTIVE
Austin Street Center
Daniel Roby, Chief Executive Officer