Urban Land Bank Demonstration Program Application Training by David Noguera 1
Overview 1. Dissecting the Application 2. Program Description 3. Program Uses 4. Lot Sales Price 5. Eligible Program Applicants 6. Program Requirements 7. Application Steps 8. Tentative Application Timeline 9. Exhibits 10. Contact Information 2
Dissecting the Application Instructions Pgs. 1-9 Application Scoring Factors Pgs. 10-11 Exhibits Pgs. 13-44 3
Program Description The Dallas Housing and Acquisition Development Corporation (DHADC) is a nonprofit entity organized under Chapter 379C of the Texas Local Government Code. The following taxing entities participate in the Land: City of Dallas, Dallas County, Dallas County Hospital District, Dallas Independent School District, Dallas County School District, and Dallas County Community College District. The purpose is to reclaim tax delinquent real estate for affordable housing development, community purposes and side lots. 4
Program Uses A. For Sale Homes (min. of 5 yr. deed restriction): A minimum of 25% sales < 60% of AMFI Not more than 30% sales between 81% and 115% of AMFI (45% of sales must be between 61% - 80% of AMFI) B. Rental (min. of 15 yr. deed restriction): 100% < 60% AMFI 40% < 50% AMFI 20% < 30% AMFI C. Community Purposes, for example: Retail and community gardens D. Side Lots Sold to Adjacent Owners Side lots sales to adjacent owners can not sell, lease or transfer lot 3 years from the date of sale 5
Lot Sales Price A. For-Sale or Rental development projects Fair Market Value as determined by a Comparative Market Assessment Price discounts will be subject to project underwriting and consideration of the targeted housing beneficiary B. Community Purpose: Fair Market Value as determined by a Comparative Market Assessment Price discounts are not applicable C. Side Lots Fair Market Value as determined by the appraisal district, or Sales price recorded in the annual plan Price discounts are not applicable to sale of lots to adjacent property owners 6
Eligible Program Applicants A. For Sale, Rental, or Mixed Use: Qualified Organization (CHDOs) - Right of First Refusal Qualified Participating Developers B. Community Purpose: Not required to be a Qualified Participating Developer C. Side Lots not appropriate for residential development Adjacent Property Owners 7
Program Requirements Construction Insurance 18-months from sale to commence construction Must revert 3 yrs from sale if permits and financing is not secured. Compliance w/federal regulations Affirmative Fair Housing Marketing and Selection Plan Section 3 Minority Business Enterprises / Women Business Enterprises Occupancy Requirements Other: Community Outreach 500 ft radius Lot Exchange 8
Exhibits A: Federal, State and Local Requirements B: List of CHDOs (as of June 6, 2018) C: Rental and Single-Family Development Guidelines D: Homebuyer Underwriting Guidelines E: For-Sale Homebuyer Checklist F: Sample Timeline G: Affirmative Fair Housing Marketing Plan / Selection Plan H: Neighborhood Groups/Associations I: Applicant Forms J: Applicant Conflict of Interest Questionnaire K: Adjacent Property Owner Form 9
Application Steps 1. Submit Land Bank Application to City Housing Dept. a. Two separate flash drives b. Submit to DHADC, Land Bank Manager 2. Nonrefundable Application Fee a. < 5 lots $125.00 fee b. 6 or more $300.00 fee Land Bank Purchasing Process 3. Application Evaluation a. Incomplete Application 1. Return to developer (will not be scored) 4. Application Scoring b. Complete Application 1. Review within 45 Days a. Score application max 105 pts b. Notice for referral will be sent to developer c. Term Sheet approved by Applicant 1. Material Changes $50.00 5. Tie Breaker (same lots / same score) a. First complete application submitted Schedule for Consideration 1. Refer for approval to DHADC Board of Directors (If approved) 2. Refer for approval to Econ. Dev. & Housing Committee (if approved) 3. Refer for approval to City of Dallas City Council (if approved) (The process from start to finish may take up to 6 months) 10
Tentative Application Timeline Due Dates July 25, 2018 July 11-25, 2018 August 10, 2018 August 24, 2018 September 20, 2018 September 28, 2018 Tasks Last day to submit applications for RESERVED LOTS Accepting applications between the hours of 9:00 am 5:00 pm for ALL LOTS Complete scoring and issue Applicant notice Complete underwriting analysis and recommendations Land Bank Board Consideration List of remaining lots available for sale posted on the website 11
Contacts All inquiries or comments should be emailed to: dallasulbdp@dallascityhall.com DHADC will continue to post Frequently Asked Questions on the land bank s website, which is located at: https://dallascityhall.com/departments/housing-neighborhoodrevitalization/pages/landacquisition.aspx 12