STRATEGIC PRIORITY: Economic and Neighborhood Vitality
AGENDA DATE: October 13, 2021
COUNCIL DISTRICT(S): All
DEPARTMENT: Department of Housing & Neighborhood Revitalization
EXECUTIVE: Dr. Eric A. Johnson
______________________________________________________________________
SUBJECT
Title
Authorize an amendment to the City of Dallas Comprehensive Housing Policy, as amended, to allow the City to provide targeted financial support for the development of non-income restricted housing units that provides consideration for such development and meets a public purpose - Financing: No cost consideration to the City
Body
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 (Department) recommends changes to the CHP. The proposed changes are designed to improve the program’s effectiveness and broaden the type of housing units and income bands that can receive financial support from the City.
At present, the CHP only allows the City to fund housing units that serve families earning at or below 120% of the area median income (AMI). The Department is recommending amendment to the CHP to allow the City to support the development of housing units that are non-income restricted. The goal of this amendment is to allow for the targeted development of market rate housing in areas that already have a substantial amount of affordable housing in the area. This targeted development will allow for the development of new, mixed-income communities.
Any development, affordable or non-income restricted, will still be required to submit an application through the Department’s Notice of Funding Availability (NOFA) application process. The City will not provide financial support for a development unless a financial gap is confirmed through the underwriting process. This change will simply allow non-income restricted projects to receive funding as needed in support of a broader range of housing options in areas that have a substantial amount of affordable housing in the area.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On May 9, 2018, City Council adopted the CHP and created the Dallas Housing Policy Task Force by Resolution No. 18-0704, as amended.
On November 28, 2018, City Council authorized amendments to the CHP, to make technical changes to the Home Improvement Preservation Program (HIPP), the Dallas Homebuyer Assistance Program (DHAP), and the New Construction and Substantial Rehabilitation Program by Resolution No. 18-1680.
On May 22, 2019, City Council authorized an amendment to the CHP to add a Land Transfer Program to incentivize the development of quality, sustainable housing that is affordable to the residents of the City and the development of other uses that complement the City’s CHP, economic development policy, or redevelopment policy by Resolution No. 19-0824.
On June 12, 2019, City Council authorized amendments to the CHP to amend and restate the low-income Housing Tax Credit policy by Resolution No. 19-0884.
On June 26, 2019, City Council authorized amendments to the CHP to amend the DHAP, the HIPP, and the HIPP Landlord Program by Resolution No. 19-1041.
On September 25, 2019, City Council authorized amendments to the CHP to create the Title Clearing and Clouded Title Prevention Pilot Program by Resolution No. 19-1498.
On December 11, 2019, City Council authorized amendments to the CHP to modify the provisions for the housing policy task force, update language to comply with the Mixed Income Housing Development Bonus previously approved by City Council and remove two application forms by Resolution No. 19-1864.
On January 22, 2020, City Council authorized amendments to the CHP and created a Neighborhood Empowerment Zone Program by Resolution No. 20-0188.
On August 26, 2020, City Council authorized amendments to the CHP to amend the DHAP program, include the 0-30% income band in the range of income bands to be served, create the Targeted Rehabilitation Program, and to allow Community Housing Development Organizations to retain a percentage of sales proceeds from eligible HOME-funded projects by Resolution No. 20-1220.
On January 27, 2021, City Council authorized the execution of a conditional grant agreement with St. Jude, Inc. and/or its affiliates for the rehabilitation of the property located at 8102 Lyndon Baines Johnson Freeway, Dallas Texas 75251 by Resolution No. 21-0213. Item approval required a floor amendment allowing Council to waive the provisions in the Comprehensive Housing Policy limiting rehabilitation subsidy to 9% of the HUD 234 Limits.
On January 27, 2021, City Council authorized 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 by Resolution No. 21-0212.
On September 9, 2021, City Council authorized amendments to the CHP to modify the Home Improvement and Preservation Program (HIPP), the Minor Home Repair Grant Program, the Housing Reconstruction Program, the Landlord Rental Program, the Community Land Trust Program, the Targeted Rehabilitation Program, and the Tenth Street Targeted Rehabilitation Sub-Program Module by Resolution No. 21-1450.
FISCAL INFORMATION
No cost consideration to the City.