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
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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 amend the loan terms in the New Construction and Substantial Rehabilitation program to remove the requirement that the City may only subordinate its lien position to a private financial institution for a loan in a greater amount - 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 (Department) recommends changes to the New Construction and Substantial Rehabilitation Program. The proposed changes are designed to improve the program's effectiveness and broaden the potential number of development partners that can participate in the program.
At present, the City's New Construction and Substantial Rehabilitation Program requires that the lien position of any City loan be no less than second, except upon approval of the appropriate City Department Director, subordinate only to a private financial institution's superior lien for a loan in a greater amount. The Department is recommending this requirement be removed in order to provide loans to smaller-scale and non-profit developers that may not be able to receive loans from private institutions in amounts greater than the City's subsidy yet still require a subordination of our soft loans.
A recent third-party underwrite of an...
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