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Dallas City Council
2/14/24
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February 14, 2024
District: 7
240-Unit PFC Mixed-use/Multifamily | 4000 Ash Ln | Approved
District: 8
42-Unit Townhomes | 14225 Seagoville Rd | Deferred
Citywide
Low-Income Housing Tax Credit (LIHTC) | Approved
You saved: 7h 38m
DISTRICT: 7
620 S Hill Ave/4000 Ash Ln
Santa Fe Trail at Haskell 4000 Ash Ln
Expo Park | 2.69 Acres | 240 Units | Approved
City Council PFC Purchase 2/14/24
City Council Rezoning 11/8/23
PFC Board 11/7/23
Pushing 20 months in the entitlements process, Larkspur Capital’s 240-unit PFC product was approved at the Valentine’s Day City Council meeting. This approval was for the Dallas Public Facility Corporation (DPFC) purchase of the land since they are the owner.
A Public Facility Corporation (PFC) is an entity created by the City of Dallas to deliver affordable housing through public-private partnerships.
Incentives:
PFC Gets: Annual rent payment starting ($341K for Larkspur’s PFC), + other fees ($250K+).
Developer Gets: Property tax exemption for 75-year lease + construction materials tax exemption + Developer fee (4% here) + majority of sales/refi proceeds after costs/returns paid.
The City Gets: 50% of the units as income-restricted affordable housing + investment of PFC fees in other affordable housing projects.
Council Members disagreed over the fiscal trade-offs, whether this project serves Dallas's greatest housing needs, and whether it will catalyze community redevelopment.
Let’s break down the discussion.
District 1 Council Member Chad West emphasized that this PFC would be built on vacant land that is currently generating minimal tax revenue. He asked the PFC manager:
‟So we are basically activating a vacant piece of land and we're putting housing on it, correct?
The Manager confirmed this. West also asked specific questions about the number of units - 240 total, with 120 being income-restricted affordable units. He argued The City must subsidize developers to get any affordable housing built.
‟Are developers building these affordable units for free - are they doing it out of the kindness of their heart?
No, absolutely not.
So if we don't subsidize them in some way, we're not gonna get affordable units in The City, correct?
This was also confirmed. In opposition, Council Member Mendelsohn focused on the long-term (75-year) tax abatement and the lost revenue to the General Fund. She stated this project is “fiscally irresponsible.” Mendelsohn’s stance:
‟Only 10% of them will be at the 60% area median income or less. We know that that is where our actual need is for housing.
Mendelsohn repeatedly asked if the fees paid to the PFC can be used for core city services like streets, libraries, and public safety. The answer was no - the fees stay within the Housing Department budget. Majed Al-Ghafry, an Assistant City Manager, stepped in at one point to clarify that PFC fees can be used for infrastructure related to that specific housing project, but not infrastructure beyond the project's property line.
Mendelsohn concluded with a warning.
‟You need to remember every single time you have voted for 75 years to give up these ad valorem taxes...I just think it’s fiscally irresponsible to not even have a limit on how many of these we’'ll do when we’re not creating the kind of housing that we actually need.
Developer: Larkspur Capital, Carl Anderson LinkedIn
Case Report (11/8/23) : Z212-287(MP)
Read this project’s full narrative:
See more on PFCs:
LIHTC Applications 2024
Low-Income Housing Tax Credit (LIHTC)
2024 Application Tracking
Speaking of affordable housing, here are some stats on Dallas’ 2024 LIHTC applications.
What is LIHTC?
Low-Income Housing Tax Credit (LIHTC): Tax incentives for affordable housing development. The 4% credits are non-competitive, tied to bond financing, and suit larger projects. The 9% credits are highly competitive, offer higher equity, and target smaller, high-priority projects.
Braniff Lofts (9%) | 2801 Wycliff Ave | Sycamore Strategies | District 14 | 48 Units
3606 S. Cockrell Hill Road Senior Living (9%) | 3606 S. Cockrell Hill Rd | Palladium | District 3 | 120 Units
Olea at Oak Cliff (9%) | 541 E Jefferson Blvd | O-SDA Industries | District 1 | 81 Units
Patriot Point at Markville (9%) | 9222 Markville Dr | Generation Housing Partners | District 10 | 165 Units
West End Lofts (9%) | 805 Elm St | Sycamore Strategies | District 14 | 160 Units
The Broderick (9%) | 12800 Coit Road | St. Margaret, Inc. | District 11 | 108 Units
Tenison Lofts (4%) | 3600 Samuell Blvd | Generation Housing Partners | District 2 | 164 Units
HiLine Illinois (4%) | 4710 West Illinois Ave | Generation Housing Partners | District 1 | 200 Units
Waterford at Goldmark (4%) | 13695 Goldmark Drive | District 11 | Allied Orion Group | 200 Units
West Virginia (4%) | 8004 West Virginia Dr | April Housing | District 8 | 204 Units
DISTRICT: 8
14225 Seagoville 14225 Seagoville Rd
Southeast Dallas | 3.5 Acres | 42 Units | 17 Townhomes | Deferred
This 42-unit townhome project was deferred without a discussion. Read more about it below.
City Plan Commission 10/5/23
Denied W/O Prejudice
‟We do not want multifamily development anywhere near our neighborhoods.
0.7 Miles from I-20, a 3.5-acre site fell victim to the neighborhood’s power in opposing density
RSJ Developments LLC, represented by Erick Cortez, proposed building 42 apartment units and 17 townhomes on a 3.5-acre lot in the rural single-family home area. And by rural, we mean you’ll see more ‘horses there than cars.’
Cortez emphasized that the units would be affordable and that they had communicated with the community during the planning process.
However, several Commissioners brought up concerns about the increased density not matching the rural character and low density that the surrounding neighborhood desires to maintain. Commissioner Blair quoted an email from the local Cleaver Riley Area Crime Watch opposing the development:
‟We have bought these properties to enjoy our rural way of life. Raise our animals and live off the land.
They (multifamily projects) bring too much noise, pollution, traffic, and congestion.
The commissioners recognized the need for housing but felt the developer's proposal was too intense for the area. Commissioner Blair, who represents the district, identified the area’s need for infrastructure. It’s still on septic tanks and without curbs.
The motion to deny without prejudice passed unanimously, allowing the developer to submit a revised proposal. The concerns centered around compatibility with the surrounding single-family homes rather than opposition to any development at all. As Commissioner Hampton stated:
‟ I think there may be a way working with the community to find a more tailored solution that would allow for an incremental increase in density that working with the community might be appropriate.
Overall, the developer faced challenges in gaining support from both the Commission and the community due to the density proposed.
Developer: RSJ Developments LLC, Erick Cortez
Case Report: Z223-195(AU)
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