STRATEGIC PRIORITY: Housing & Homelessness Solutions
AGENDA DATE: March 27, 2024
COUNCIL DISTRICT(S):|910|DEPARTMENT: Department of Housing & Neighborhood Revitalization
EXECUTIVE: Majed Al-Ghafry
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SUBJECT
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Authorize an increase in the development loan agreement with Texas Heavenly Homes Ltd., or its affiliate (Applicant), conditioned upon the completion of a third-party underwriting for the development of the Bottom Infill, a 32-unit single-family affordable housing project located in the Bottom neighborhood of Council District 4 - Not to exceed $3,084,427.00, from $500,000.00 to $3,584,427.00 - Financing: Community Development Block Grant Disaster Recovery Funds (This item was deferred on February 14, 2024)
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BACKGROUND
On June 25, 2008, the City Council authorized the City Manager to execute a loan agreement with Texas Heavenly Homes, Ltd. (THH) for a loan in the amount of $500,000.00 at 0% interest for the purposes of acquiring improved and unimproved properties (Properties) in the Bottom neighborhood (Bottom), and for associated relocation, environmental remediation or demolition by Resolution No. 08-1800. The terms of the loan required THH to develop and sell or lease housing units on all of the Properties acquired with the loan funds to households earning 140% or less of area median income (AMl). On January 8, 2009, the City of Dallas executed the loan agreement with THH for the $500,000.00 in 2006 General Obligation Bond monies.
By 2012, THH acquired 36 residential lots in the Bottom and expended all loan proceeds. THH has also acquired an additional 55 residential lots in the Bottom without any City funding. However, THH did not, and has not, begun to develop housing units.
THH's failure to develop housing units was attributed to a combination of several factors, including: (1) the lack of upgraded public water and sewer infrastructure, (2) the small lot size of many of ...
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