STRATEGIC PRIORITY: Economic and Neighborhood Vitality
AGENDA DATE: January 27, 2021
COUNCIL DISTRICT(S): All
DEPARTMENT: Department of Housing & Neighborhood Revitalization
EXECUTIVE: Dr. Eric A. Johnson
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SUBJECT
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Authorize an amendment to the City of Dallas Comprehensive Housing Policy, previously approved on May 9, 2018, by Resolution No. 18-0704, as amended, to (1) amend the loan terms in the New Construction and Substantial Rehabilitation Program to allow forgivable loans for projects with permanent supportive housing units; and (2) to remove the nine percent subsidy cap from the annual HUD 234 - Condominium Housing Limits - Financing: No cost consideration to the City
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BACKGROUND
The Comprehensive Housing Policy (CHP) has three main goals: (1) create and maintain available and affordable housing throughout Dallas; (2) promote greater fair housing choices; and (3) overcome patterns of segregation and concentrations of poverty through incentives and requirements.
The Department of Housing & Neighborhood Revitalization is proposing two changes to the New Construction and Substantial Rehabilitation Program in the CHP. The proposed changes are designed to improve the programs' effectiveness and broaden the potential number of residents served by the programs.
New Construction and Substantial Rehabilitation Program
At present, all City development subsidy requires repayment. However, requiring repayment on all projects does not allow for responsible investment in projects with permanent supportive housing units. Projects that include permanent supportive housing units often have higher operating costs when compared to a similarly sized non-permanent supportive housing development. When coupled with restricted rents at lower Area Median Income (AMI) levels, the ability to pay debt service on City subsidy is limited or nonexistent. Staff recommends amending the CHP to allow ...
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