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Dallas City Council
9/11/24
Welcome to Ultraground. We track district-level activity for you.
CC September 11, 2024
District: 3 | Southwest Dallas
180-Unit Single-family Rental | 8353 W Camp Wisdom Rd | Approved
District 3 Deal Data
District: 6 | Trinity Groves
32-Acre Mixed-use | 1600 Singleton Blvd | Approved
Citywide
DHFC/TDHCA Qualified Mortgage Revenue Bonds | Approved
You saved: 6h 30m
DISTRICT: 3
Mountain Creek Crossing 8353 W Camp Wisdom Rd
Southwest Dallas | 15.47 Acres | 180 Units | Approved
This 180-unit single-family rental deal was approved without a discussion, following this notable City Plan Commission hearing:
City Plan Commission 7/25/24
PD → SC | Approved
The Dallas City Plan Commission strongly supported the rezoning application for Mountain Creek Crossing, a 180-unit single-family rental product from owner Richard Hope. This deal, located on 15.47 acres along West Camp Wisdom Road, represents a shift in the City's approach to housing development in historically underserved areas.
Commissioner Darrell Herbert provided crucial historical context. Herbert emphasized the area's significance as a former community for Black entrepreneurs and farmers, highlighting the potential for this development to improve living conditions.
‟There's work to be done here, that work has been needed for over 50 years... This proposal puts a small footprint single family bungalow style homes that remind me of the vision the residents once dreamed of.
Commissioner Lorie Blair echoed this support.
‟It's nice to know that while there may not be homes for sale, they are something better than what's there. They are doing something to better the community they're bettering from... I will gladly and wholeheartedly support this request.
The project, developed by Richard Hope, proposes a density of 12 units per acre with a 30-foot height limit. It includes a mix of 1, 2, and 3-bedroom units ranging from 600 to 1200 square feet. Notably, 5% of the units (9 total) will be designated as mixed-income housing for households earning 61-80% of the area median income. The development exceeds city parking requirements, providing 300 spaces for 180 units.
Eugene Duncan, speaking for 330 neighboring homes in the adjacent Hunters Bend community, endorsed the deal.
‟I think that we need this development. I agree with that. They all have my blessing for it.
On the other hand, resident Ellen Taft advocated for homeownership opportunities.
‟We need home ownership so that we and our neighborhood can qualify for a grocery store. Right now we have to drive 10 miles to shop.
You saved: 9h 36m
The approval, in line with staff recommendations, signals Dallas' recognition that quality rental housing can be a catalyst for long-awaited neighborhood revitalization.
Developer/Owner: Richard Hope Phone: (214) 763-8039 Email: [email protected] LinkedIn
Case Report: Z223-331(MP) CR
Project Plans: Z223-331(MP) Plan
DISTRICT: 3
The dataset analyzes nine deals in Dallas' District 3 between 2022 and 2024. It encompasses a variety of housing types including multifamily apartments, senior housing, townhomes, and build-to-rent (BTR) developments. Recent affordable and mixed-income housing development in the area implements various partnership models including Public Facility Corporation (PFC), Housing Finance Corporation (HFC), and Low Income Housing Tax Credit (LIHTC) structures.
In Dallas’ District 3, the affordable housing landscape is quietly evolving, with the Westmoreland Townhomes project emerging as a particularly intriguing case study. This development, partnering with a Housing Finance Corporation (HFC), stands out in a field dominated by Public Facility Corporation (PFC) structures and Low Income Housing Tax Credit (LIHTC) projects.
The HFC partnership model employed here contrasts with the District 3 PFCs, where development costs range from $26.2 million to $99.7 million.
The financial structures of PFC deals show consistent patterns in certain areas. Structuring fees range from $250,000 to $350,000, while annual lease payments fall between $218,000 and $325,000. The uniformity of the 15% first sale commission across PFC projects is noteworthy, hinting at standardized practices in this aspect of deal structuring.
Westmoreland Townhomes presents a distinctive model: 202 units, all designated as affordable at 60% AMI. This 100% affordable approach within an HFC framework differentiates it from other mixed-income developments in the area. The project is seeking up to $40 million in bond financing, with considerations for a Fannie Mae MBS execution, hinting at innovative financing strategies within the HFC structure.
This project's focus on townhomes rather than traditional multifamily units adds another layer of uniqueness. It's exploring a "build-to-rent" concept specifically for seniors, featuring single-story duplex townhomes. The BTR concept is not unique to Westmoreland Townhomes in this dataset. Mountain Creek Crossing and Capella Park also explore BTR models, albeit with different approaches. Mountain Creek Crossing offers 180 single-family BTR units, with 9 designated as affordable, while Capella Park provides 133 rental townhome units. These projects received a range of reactions from various bodies. Deals like Capella Park faced criticism, Westmoreland was received well, and Mountain Creek Crossing faced mostly praise.
DISTRICT: 6
SoHo II 1600 Singleton Blvd
Trinity Groves | 32.08 Acres | 1,604 Units (Est. Max.) | Approved
The Dallas City Council approved an amendment to and expansion of Planned Development District No. 1049 on September 11, 2024. The project, developed Aaron Ipour and Megatel Capital Investment, will expand the PD to approximately 32.08 acres.
Key changes approved:
Maximum height of 85 feet allowed within Phase 1 of the development.
Increase in floor area ratio from 1.9 to 2.2 for residential uses in mixed-use projects.
Addition of commercial amusement (inside) as a permitted use in Phase 1, limited to a bowling alley.
Adjustment to hours of operation for the artificial swimming lagoon.
City Council approved the zoning change as recommended by the City Planning Commission, with some additional conditions:
Non-residential structures in Phase 1 limited to 3 stories and 60 feet in height (except parking structures).
Swimming lagoon hours restricted to 8am-9pm Mon-Thu and 8am-10pm Fri-Sun.
The most notable interaction came from Chairwoman Mendelsohn, who pointed out the lengthy processing time for the application.
‟I would just like to note that the submittal date was May 2nd, 2023, 498 days ago, 71 weeks ago.
This comment prompted a brief explanation from a staff member about the complexity of amending Planned Development Districts.
Andreea Udrea, Deputy Director of Planning & Development, noted that it took "8 to 10 months just back and forth" with the developer. Udrea elaborated it's a "lot of work to put into these PDs" to make sure that they "get it right."
For affordable housing, the rezoning terms offer density bonuses. Megatel can increase from 50 to 85 units per acre by offering 5% of units at 61-80% of Area Median Income (AMI). They can reach 105 units per acre with 10% at 61-80% AMI, or 125 units per acre with 10% at 61-80% AMI and 5% at 81-100% AMI.
In June, the City Plan Commission voted 13-0 to recommend approval. Of 318 notified property owners, three supported the project and none opposed it.
Developer: Megatel Capital Investment, Arash Afzalipour (Aaron Ipour) Phone: (972) 339-0159 Email: [email protected]
Case Report: Z223-257(MB)
Project Plans: Z223-257(MB)
DHFC/TDHCA Qualified Mortgage Revenue Bonds
Citywide | Approved
The Dallas Housing Finance Corporation (DHFC) is delegating its authority to issue these bonds to the Texas Department of Housing & Community Affairs (TDHCA).
Specifically, the item discussed was a resolution to authorize:
The Dallas Housing Finance Corporation (DHFC) to delegate to the Texas Department of Housing & Community Affairs (TDHCA) its authority to issue Qualified Mortgage Revenue Bonds.
An Assignment Agreement between the DHFC and the TDHCA for the assignment of the Bonds.
The bonds total $64,819,515 and are to be administered by the TDHCA through the Texas Homebuyer Program. This delegation allows TDHCA to use its existing infrastructure and network of lenders to distribute these funds more efficiently for single-family home loans in Dallas.
While distinct from TDHCA's tax credit programs for multifamily deals, this discussion offers some insight into HFC activity in Dallas.
Local Control: Council Member Paul Ridley questioned the delegation of authority. Ridley was concerned about this delegation of authority from the local DHFC to the state-level TDHCA, rather than keeping the administration of these funds entirely local.
‟Could someone from Housing come forward to explain why we're delegating this authority to a state agency as opposed to doing this ourselves?
Financial Sustainability: Cara Mendelsohn probed the program's financial structure, particularly regarding the forgiveness of down payment assistance loans after three years.
‟If they do meet criteria for forgiveness, who's paying back the revenue bond then? I mean, we've got $68 million, $64 million of revenue bonds. Somebody has to pay that.
Carolyn King Arnold introduced the term "gentle-fication," emphasizing this need to integrate higher-income residents without displacing existing ones.
‟Carefully craft these programs so that we are not impacting communities to that point of gentrification.
Omar Narvaez strongly supported the program. He highlighted its success in stabilizing West Dallas neighborhoods, indicating support for housing initiatives promoting community stability.
‟These folks don't leave. Once they get their home, they want to stay there because they want to, you know, that it's stable and it's somewhere that they're going to call home.
The program's income limits - up to 140% of Area Median Income (AMI) in targeted areas and 110% AMI in non-targeted areas - sparked debate about the definition of affordability. Council Member Cara Mendelsohn questioned the upper limits of $132,360 for 1-2 person households and $154,420 for larger households in targeted areas.
‟I find it difficult to have that answer be about affordable housing.
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