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Dallas City Council
12/13/23 | Cypress Creek at Montfort | 168-Unit Multifamily
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December 13, 2023
District: 11
168-Unit Multifamily | 14119 Montfort Dr | Approved
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DISTRICT: 11
Cypress Creek 14119 Montfort Dr
Far North Dallas | 168 Units | Approved
Local developer Zachary Krochtengel faced some interesting concerns regarding city funding and affordability requirements for its $58M Cypress Creek project.
The 168-unit mixed income plan was originally approved for $4.1 million in ARPA funds. The developer came back requesting an additional $7.6 million in CDBG-DR funds due to increased construction costs, for a total of $11.7 million in city funding. As Council Member Mendelsohn noted, this amount raised eyebrows coming atop LIHTC tax credit equity:
‟It's a lot of money, $28 million, when the actual kinds of units we need total 4, that's what CPAL has said.
While the project passed in a 14-1 vote, several Council members including Council Member Mendelsohn raised concerns about the unit mix not fully matching affordable housing needs. With family-sized units considered a top necessity, Mendelsohn worried about the imbalance.
‟When I look at this and I see that there's only 12, 3-bedrooms and 7 of those 12 are market rate...we're just so off the mark, not totally off the mark, but we're not hitting what we really, really need.
Krochtengel defended the project as sorely needed affordable housing:
‟We feel that it's a great investment for the City because it provides needed housing in an upcoming area, a high opportunity area.
He also cited issues like drainage relocation and permitting delays as major obstacles, especially for infill development.
‟Nobody wants to go forward with that uncertainty of getting your drawings, getting your engineering completed because you have the uncertainty of you might not get those tax credits.
…While we're in the middle of this process, it's very, very difficult...that's 6 months of interest increases, the market tightening up, insurance increases.
The $58M Cypress Creek project was approved for $11.7M in City funding despite concerns from Council Member Mendelsohn over unit mix and not fully meeting affordable housing needs. Developer Zachary Krochtengel cited obstacles like drainage, permitting delays, and tight deadlines.
Developer: Zachary Krochtengel LinkedIn
Resolution: 123-3043
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