Three Public Utility Corporation projects were approved after another debate over whether they were good deals

A Child Poverty Action Lab report released in July identified a problem in Dallas’ rental market, but you wouldn’t know it by the number of apartment projects approved on an almost weekly basis by the Dallas City Council.

The CPAL report issued the following findings:

• The city of Dallas has a supply gap of 33,660 rental units for low-income households at or below 50 percent of the area median income (AMI), which is $44,500 for a family of four. There is currently no supply gap for households earning more than 50 percent income.
• Without intervention, the gap is expected to widen to 83,500 rental units for households with a median median income of 50% or less by 2030. However, the gap does not stop there, and will extend to households at or below 80% of the median median income, which is $71,200 (in 2021 dollars) for a family of four in the coming years.
• Households of four or more people are particularly vulnerable: There are 50 affordable three-bedroom units for every 100 households of four or more people with a median age of 50% or less, and by 2030, there will be 15 Only three bedroom unit affordable for 100 families.

Public Utilities Corporation projects

Three projects were approved Wednesday under the city’s public utility company financing structure. The developers have entered into a 75-year lease agreement with Dallas PFC, and the projects will be exempt from all ad valorem taxes for the mixed-income units.

District 12 Councilwoman Kara Mendelsohn said she supports affordable housing but the projects miss what is really needed.

“What I really want to point out is No. 1, our estimated taxes that are waived are only expressed as a 15-year period for a 75-year deal,” she said. “Our lowest level of AMI (at the Bishop 8th project) is 60 percent. What we see in (the CPAL report) is that we already have a surplus at the 60 percent level of units and a surplus at the 80 percent level. What we are missing is 30 percent and below and 50 percent and below.” This project is not getting us where we need to be. It is not literally meeting the need that the Child Poverty Action Lab has shown us.

City Manager TC Broadnax said revenue generated from the projects goes back to the PFC to be used for affordable housing. In many cases, if the city does not provide incentives, affordable housing will not be built.

“We have this discussion every time the PFC element comes up,” he said. “The underlying theme is that the Child Poverty Action Lab has clearly shared the need for affordable housing. This board has benefited and spoken about affordable housing in many of your talks. We need affordable housing. The dollars generated from the funding directed to Affordable housing, which in some cases wouldn’t have to come from a bond program, and/or from the general fund, and/or from future tax cuts and other types of things.(PFC) was created to do exactly what it does.

The eighth bishop

Bishop 8th is a mixed-income, multifamily development located at 505 and 510 West 8th St. BV Acquisitions LLC is developing 226 one-bedroom units and six studio units.

At least 94 of the 232 units will be available for rent to households with incomes below 80 percent of the median household income, 24 units will be available to households with incomes below 60 percent of the median household income, and 114 units will be rented. At market rate rents

The estimated lost revenue is about $1.1 million over 15 years, but the project would generate $4.5 million for the city over the same time period.

District 1 Councilman Chad West said there are some good new developments in Bishop Arts and also some “really big, ugly new apartments as well.”

“I wanted to make sure that if the city is going to give a tax abatement to the utility company — of course we’re going to get affordable housing for that — that this is an opportunity to make sure we have some good designs,” West said.

Developer Ben Breunig of BV Acquisitions assured the council that it is committed to a first-class project with great building materials and amenities.

Coombs Creek Alta Vista

Coombs Creek Alta Vista is planned for 3400 West Illinois Ave.

Developer Marcer Group, LLC plans to build 210 residential units, including 48 studios, 116 one-bedroom units, 34 two-bedroom units, and 12 three-bedroom units.

A minimum of 82 units will be available for rent to households with incomes below 80 percent of the median living income, 23 units will be available to households with incomes below 60 percent of the median living income, and 105 units will be rented at market rate.

The estimated lost revenue is $84,464 over 15 years, but the project would generate $4.4 in rental income and $5.3 million in rental savings for the city over the same time period.

Mendelsohn questioned the low number of units allocated to households earning 30 percent or 50 percent of AMI.

“This is a very bad financial deal for the city, and our resources could be used to create housing that meets the needs identified by the Child Poverty Action Lab,” she said.

the rice

The Cedars is a mixed-income, multifamily development located at 2000 and 2220 South Ervay St.

Savoy Equity Partners, LLC is building 377 residential units, including 57 studio units, 226 one-bedroom units, 76 two-bedroom units, and 18 three-bedroom units.

A minimum of 155 units will be available to households with incomes below 80 percent of the median household income, 39 units will be available to households with incomes below 60 percent, and 183 units will be rented at market rate.

Estimated revenue lost is $700,377 over 15 years. City officials said the project would bring in about $7.8 million during the same time frame.

Earlier at Wednesday’s council meeting, a $65 million project management contract was approved for the redevelopment of the Kay Bailey Hutchison Convention Center in Dallas. Officials said the Cedars project will provide much-needed affordable housing to the area.

The convention center project “will bring thousands of jobs to the Cedars neighborhood,” 2nd District Councilman Jesse Moreno said.

“I support this wholeheartedly,” he added.

Mendelsohn argued that such a project would be built on this site without the tax abatement incentive.

District 11 Councilwoman Jayne Schultz noted that PFC projects generate money.

“Let’s be very clear about that, as well as providing additional housing that we otherwise wouldn’t have,” she said.