Comprehensive Housing Policy. City of Dallas, Texas

Size: px

Start display at page:

Download "Comprehensive Housing Policy. City of Dallas, Texas"

Adele Shelton
5 years ago
Views:

1 Comprehensive Housing Policy City of Dallas, Texas

2 Road Map Overview of the problem Goals Analysis & development of the policy Commonly used terms Programs, tools and strategies Housing policy and DART

3 The Problem: Spend 30% or less of income on housing Dallas has a housing shortage of approximately 20,000 units Six out of ten families are housing cost-burdened Families do not have sufficient opportunities to build asset wealth and break multi-generational cycles of poverty Spend more than 30% of income on housing

4 Three Broad Goals Create and maintain affordable housing units throughout Dallas Promote greater fair housing choices Overcome patterns of segregation and concentrations of poverty through incentives and requirements

5 Production Goals and Income Bands to be Served Create 3733 homeownership units 55% market rate, 45% low/modincome Create 2933 rental units 40% market rate, 60% low/modincome The policy focuses on serving families at 30% to 120% Area Median Income (AMI) Market Rate 45% 55% HOMEOWNERSHIP Low/Mod Income 60% 40% RENTAL

6 Analysis and Development of the Policy Market Value Analysis (MVA) was completed by the Reinvestment Fund in early 2018 MVA is a data-driven tool that helps residents and policy makers analyze the local real estate market at a census block level MVA is built on local administrative data and validated by local experts View the MVA at: s/pnv/pages/marketvalueanalysis. aspx

Geographic Focus Redevelopment Areas (4) Catalytic project scheduled to occur within the next 12 months that is supported by a third-party, independent market analysis.

7 Geographic Focus Redevelopment Areas (4) Catalytic project scheduled to occur within the next 12 months that is supported by a third-party, independent market analysis. Project must include new housing production with affordable units offered for sale or rent to a mix of income bands. Stabilization Areas (8) Weaker real estate markets (G,H,I) surrounded by stronger markets (A-E), and, as such, are at risk of displacement based on market conditions and scheduled redevelopment projects. Emerging Market Areas (3) A blend of middle markets (C,D,E) with mostly G,H,I markets. Needs intensive environmental enhancements, public infrastructure assessments and corrective plans, code enforcement, master planning and formalized neighborhood organizations to be prepared for real estate investment.

8 Area Median Family Income & Fair Market Rents HUD sets income limits and fair market rents on an annual basis More information: AREA MEDIAN FAMILY INCOME FAIR MARKET RENTS Efficiency 1 bedroom 2 bedroom 3 bedroom $43,250 $49,440 $55,600 $61,740 $66,700 $27,050 $30,900 $34,750 $38,600 $41,700 $1,100 $1,320 $1,620 $2,170 $580 $700 $860 $1,150 80% AMFI 50% AMFI DOWNTOWN WEST DALLAS 75212

9 Programs, Tools and Strategies

10 New Development Strategy: Incentivize private investment for the development of quality, sustainable housing that is affordable to residents of the City. New Construction and Substantial Rehabilitation Program Dallas Urban Land Bank Demonstration Program Other strategies Code lien foreclosures Infrastructure development Tax increment financing districts Housing trust fund Comprehensive planning Code enforcement sweeps

11 Sources of Funding and Land Notice of Funding Availability (NOFA) In late 2018, City advertised funding for the development of new housing units or the substantial rehabilitation of existing units. City is in the process of negotiating with the 3 proposals that received a fundable score. Offers a 0%-3% loan, where such assistance is necessary During the period of affordability, units must be sold or rented to households at or below AMI specified in the agreement Funding is prioritized in Redevelopment and Stabilization Reinvestment Strategy Areas (RVAs) CDBG, HOME, TIF, Housing Trust Fund, General Obligation Bonds Additional Sources of Funding and Land Dallas Housing and Acquisition Development Corporation (DHADC) Land Bank statute Allows the sale of unimproved land that must be developed to provide units affordable to low-income persons (115% AMI or below) or for commercial development Other City Land Transfer Options House Bill 110 Allows the sale of property to non-profits for the development of affordable housing or to religious entities for the purposes of revitalizing the property Dallas Housing Finance Corporation (DHFC) Provides financing for residential projects. May own property and enter into partnerships with developers. May make donations.

12 Preservation of Existing Housing Stock Strategy: Preserve existing housing stock by financing home improvements that address health, safety, accessibility, and structural/deferred maintenance deficiencies; granting tax freezes to owners who make improvements to their properties; and incentivizing developers to preserve affordable housing. Home Improvement and Preservation Program Including Rental Rehabilitation and Reconstruction Neighborhood empowerment zones & express plan review Incentive zoning Accessory dwelling units Other strategies Community land trusts Homestead preservation districts

13 Home Improvement and Preservation Program Finances home improvements to address health, safety, accessibility, and structural/deferred maintenance deficiencies Loans are available to homeowners at or below 60%-120% AMI Loans are available to landlords (4 or less rental units on a parcel) who agree to restrict rental of the rehabilitated units to households at 80% or lower AMI Financing is in the form of a loan 0% interest loans to homeowners at or below 60% AMI with payments deferred until sale or move-out of owner 0% interest loans to homeowners between 61%-80% AMI with a hybrid repayment structure (monthly payment/partial deferral) 3% interest loans to landlords and to homeowners between 81%-120% AMI with monthly payments Applicants must meet additional eligibility requirements Maximum funding per home is $215,000; City conducts inspection to determine necessary and eligible repairs

14 Other Tools Neighborhood Empowerment Zone (NEZ) Staff are in the process of creating NEZs within each of the Redevelopment and Stabilization Reinvestment Strategy Areas. Within a NEZ, staff can waive development and building fees. Incentive Zoning Staff are seeking Council approval for a Development Code amendment that would allow developers in low-density districts that already allow small apartments to build marginally larger apartments if they agree to reserve a percentage of units for rental to low- and moderate-income households. *Will be re-briefed to Economic Development and Housing Committee on Feb. 4, 2019 Accessory Dwelling Units (ADUs) the City Council approved an ordinance amendment that allows homeowners to build and rent ADUs; the proposed amendment requires neighborhoods to opt-in before ADUs are allowed at a neighborhood level.

15 Direct Assistance Strategy: Enable persons to purchase homes within the City by providing direct funding assistance to homebuyers and enable persons using housing vouchers to access quality, sustainable housing throughout Dallas by providing direct assistance to eligible landlords and developers Dallas Homebuyer Assistance Program Voucher Sublease Program

16 Dallas Homebuyer Assistance Program Loan may be used for principle reduction, down payment, and/or closing costs Loans are available to homebuyers between 40%-120% AMI Home may be a single-family residence, owner-occupied duplex, or condo Financing is in the form of a loan 0% interest loan with payments deferred until sale or move-out of owner Applicants must meet additional eligibility requirements, including having acceptable credit, attend an 8-hour homeownership education class, make at least a $1000 contribution to toward the purchase of the home, home must be code compliant Maximum funding per home is $215,000; City conducts underwriting to determine the necessary amount of funding

17 Housing Policy and DART Housing Policy and Proximity to Public Transportation NOFA Proximity to high-frequency transit was a scoring item High-frequency transit was defined as accessible public transportation where the frequency of departures and arrivals is no more than every 15 minutes Transit time to major employment centers was a scoring item Housing Tax Credit Policy Request for applications just closed. Proximity to a bus station or stop and transit time to major employment centers were scoring items Housing Taskforce is drafting an updated version of the City s housing tax credit policy Need input regarding scoring items Incentive Zoning Provides for reductions in minimum parking requirements for TOD

18 Housing Policy and DART (continued) Opportunities for Collaboration Strategic planning and geographic focus areas City investment + DART investment Frequency of transit Improvement/addition of bus stops Incentives to use public transportation Development/re-development of land for affordable housing purposes

19 Housing Taskforce & Ongoing Public Input and Involvement Housing Taskforce Council approved the creation of a Housing Taskforce with the following committees: Steering, Development Process, Infrastructure, Marketing and Finance and Neighborhood Quality of Life All meetings will be open to the public. Meeting dates and agendas will be posted on the Housing & Neighborhood Revitalization website. Website Access the most recent version of the Comprehensive Housing Policy Learn more about housing programs and NOFAs Find meeting dates and agendas for Housing Taskforce, Land Bank, and Housing Finance Corporation Current Housing and Neighborhood Revitalization website:

20 Thank You Maureen Milligan Assistant Director (interim), Department of Housing & Neighborhood Revitalization O: C:

21 Appendix

Memorandum. Our Product is Service Empathy Ethics Excellence Equity. DATE March 19, 2018

Memorandum. Our Product is Service Empathy Ethics Excellence Equity. DATE March 19, 2018 Memorandum DATE March 19, 2018 TO The Honorable Members of the Economic Development & Housing Committee: Tennell Atkins, Chair, Rickey D. Callahan, Vice-Chair, Lee M. Kleinman, Scott Griggs, Casey Thomas,