Memorandum

L. H, i

CITY OF DALLAS

May 18, 2012

Housing Committee Members: Scott Griggs, Vice-Chair, Dwaine Caraway,Linda Koop, and Pauline Medrano

May 21, 2012 Housing Committee Agenda

We will have a meeting of the Housing Committee on Monday, May21 2012,City Hall, 1500 Manila - Room 6ES, Dallas, Texas, 75201, from 11:00 a.m. —

12:30 p.m. The agenda is as follows:

1. Approval of April 16, &April 30, 2012 Minutes

2. North Texas CommunityDevelopment Association

Councilmember Carolyn R. Davis

Diane Ragsdale, PresidentNorth Texas CommunityDevelopment Association(Estimated time 60 minutes)

3. Upcoming Agenda Item For Information Onlya. Business Plan Program Statement Modification

4. Upcoming Housing Committee Itemsa. 2012 Low Income Tax Credit Projectsb. Affordable Housing Inventory

Carolyn R. Davis, ChairHousing Committee

Dallas, the City that Works: Diverse, Vibrant and Progressive’

[lousing CommitteeMay 18, 2012Page 2

c: The Honorable Mayor and Members of the City CouncilMary K. Suhm, City ManagerRosa A. Rios, City SecretaryTom P. Perkins, Jr., City AttorneyCraig Kinton, City AuditorJudge C. Victor Lander, Administrative Judge, Municipal CourtA.C. Gonzalez, First Assistant City ManagerRyan S. Evans, Assistant City ManagerForest Turner, Assistant City ManagerJill A. Jordan, P.E., Assistant City ManagerJoey Zapata, Assistant City ?vlanagerJeanne Chipperfield, Chief Financial OfficerStephanie Pegues-Cooper, Assistant to the City Manager

A closed executive session may be held if the discussion of any of the above agendaitems concerns one of the following:

I. Contemplated or pending litigation, or matters where legal advice is requested of theCity Attorney. Section 551.071 of the Texas Open Meetings Act.

2. The purchase, exchange, lease or value of real property, if the deliberation in an openmeeting would have a detrimental effect on the position of the City in negotiationswith a third person. Section 55 1.072 of the Texas Open Meetings Act.

3. A contract for a prospective gift or donation to the City, if the deliberation in an openmeeting would have a detrimental effect on the position of the City in negotiationswith a third person. Section 55 1.073 ofthe Texas Open Meetings Act.

4. Personnel matters involving the appointment, employment, evaluation, reassignment,duties, discipline or dismissal of a public officer or employee or to hear a complaintagainst an officer or employee. Section 551.074 of the Texas Open Meetings Act.

5. The deployment, or specific occasions for implementation of security personnel ordevices. Section 551.076 of the Texas Open Meetings Act.

6. Deliberations regarding Economic Development negotiations. Section 55 1.087 oftheTexas Open Meetings Act.

Cal/as, the City that Works: Diverse, Vibrant and Progressive”

Housing Committee

Meeting RecordApril 16, 2012

Tthe Housing Committee meetings are recorded. Agenda materials and audiotapes may beLçyiewed/copied by contacting the Housing Department, Staff Coordinator at 214-670-3906.

Meeting Date: April 16, 2012 Meeting Start time:

__________________

Committee Members Present: Staff Present:Carolyn R. Davis-(Chair) Ryan Evans-Asst. City ManagerScott Griggs (Vice-Chair) Joey Zapata-Asst. City ManagerDwaine Caraway Jerry Killingsworth-Director/HOULinda Koop Charles Brideau-Asst. DirectorlHOUPauline Medrano Bernadette Mitchell-Asst. DirectorlHOU

Jimmy Martin-CCSCobbie Ransom-HOUCynthia Rogers-Ellickson-HOUMike Pendleton-DPDClifton Gillespie-CMOCobbie Ransom-HOUChris Bowers-CAO Doris Edmon-HOUMichael Bostic-CAO Cassandra Luster-HOUCasey Burgess-CAO Adelia Gonzalez-CSOAdam McGo -CAO Aldo Fritz-HOUAm sser- Alida Allen-HOU

Other Council Members PDelia JassoSandy Greyson

Committee Members Absent: Other AttendeesKristen Schulz-Dallas Habitat for HumanityJanie Metzinger-Mental Health America of GreaterDallasEleanor Trachtenberg-Senior Affairs CommitteeBeverly Tobian-Health and Human ServicesGustavo Gonzales-Senior Affairs CommitteeLaura Reed

AGENDA:

Housing Committee Meeting Called to Order by CM Carolyn R. Davis

1. Approval of April 2,2012 Minutes of the Housing CommitteePresenter(s): Council Member Carolyn R. Davis

Motion made by: CM Scott GrigqsItem passed unanimously: X

Item failed unanimously:Follow-up (if necessary):

Motion seconded by: CM Pauline MedranoItem passed on a divided vote:______

1:01 A.M

Action Taken!Committee Recommendation(s)

Item failed on a divided vote:

Housing CommitteeApril 16, 2012Meeting Record — Page 2 of 2

At 11:03 a.m. CM Carolyn R. Davis announced the closed session of the Housing Committeemeeting authorized by Chapter 551, “Open Meeting, of the Texas Open Meeting Act to discussthe following matter:

Legal issues involving Group Housing Facilities Regulation and Enforcement

Follow-up (if necessary)

4. Upcoming Agenda Items

a. Reconstruction/SHARE Program (2 homes)

5. Upcoming Housing Committee Items

a. HOPWA Planning Updateb. MAP Program Updatec. Affordable Housing Inventory

Meeting Adjourned by CM Carolyn R. Davis

(CM Linda Koop was not present due to a conflict of interest)

. CM Davis reconvened the Housing Committee meeting after the closed session at 11:51 a.m.

2. Group Housing Facilities Regulation and EnforcementPresenter(s): Ryan Evans, Asst. City ManagerlJerry Killingsworth, DirectorlJimmy Martin,Director/Joey Zapata, Asst. City Manager/Janie Metzinger, Mental Health America of GreaterDallasInformation Only:

Action TakenlCommittee Recommendation(s) Briefing was not presented. CM Davis askedthat the item be brought back on the next Housing Committee agenda including the additionalinformation that was requested during the executive session.

Motion made by: Motion seconded by:Item passed unanimously: Item passed on a divided vote:

Item failed unanimously: Item failed on a divided vote

3.

Follow-up (if necessary):

HOME Investment Partnership Program UpdatePresenter(s): Ryan Evans, ACity ManagerI4?y Killingsworth, DirectorlBernadetteMitchell, Asst, DirectorInformation Only: X

Action Taken!Committee*ecom ation(s)

r .

Motion made by: . Motion seconded by:Item passed unanimously: —. . Item passed on a divided vote:

Item failed unanimously: , ,. . Item failed on a divided vote:

Meeting Adjourned: 12:18 A.M. Approved By:

Housing CommitteepeciajiIMçtin

Meeting RecordApril 30, 2012

The Housing Committee meetings are recorded. Agenda materials and aLidiotapes may bereviewed/copied by contacting the Housing Department, Staff Coordinatd214-670-3906.

Meeting Date: April 30, 2012 Meeting Start time: 11:08 AM.

Committee Members Present: Staff Present:Carolyn R. Davis-(Chair) Ryan Evans-Asst. City Manager.Scott Griggs (Vice-Chair) Joey Zapata-Asst. City ManagerDwaine Caraway Jerry Killingsworth-Director/HOULinda Koop Charles Brideau-Asst. Director/HOUPauline Medrano Bernadette Mitchell-Asst. DirectorIHOU

Jimmy Martin-CODChris Bower-CAOJames Childers-CCSCobbie Ransom-HOUPatrick Inyabri- HOU.Michael Bostic-CAOCasey Burgess-CAOAdam McGough-CAOAmy Messer-CAORenita Griggs-CODSean McGraw-CMOClifton Gillespie-CMODoris Edmon-HOUCassandra Luster-HOUJessie Salazar-CSOAldo Fritz-HOUAlida AlIen-HOU

Other ouricil Membersent: 9Delia JaoSandy fonCommitt4bers Absenr Other Attendees

Janie Metzinger-Mental Health America of GreaterDallasSherry Cusumano-Nation Alliance on MentalIllnesslGreen Oaks HospitalMall Roberts-Mental Health America of GreaterDallasKerry Goodwin-Office of Eric JohnsonKristen Schulz-Dallas Habitat for HumanityBeverly Tobian-Health and Human Services

Housing CommitteeApril 30, 2012Meeting Record — Page 2 of 2

AGENDA:

•:• At 11:10 a.m. CM Carolyn R. Davis announced the closed session of the Special Call HousingCommittee meeting authorized by Chapter 551, “Open Meeting, of the Texas Open Meeting Actto discuss the following matter:

Legal issues involving Group Housing Facilities Regulation and Enforcement(CM Linda Koop was not present due to conflict of interest)

•:• At 11:47 CM Davis reconvened the Special Call meeting after the closed session

•:• At 11:23 a.m. CM Carolyn R. Davis announced the closed session of the Special Call HousingCommittee meeting authorized by Chapter 551, “Open Meeting, of the Texas Open MeetingAct to discuss the following matter:

Legal issues involving Group Housing Facilities Regulation and Enforcement

•. At 12:37 CM Davis reconvened the Special Call meeting after the closed session

1. Group Housing Facilities Regulation and EnforcementPresenter(s): Ryan Evans, Asst. City Manager/Jerry Killingsworth, DirectorlJimmy Martin,Director!Joey Zapata, Asst. City ManagerInformation Only: X

Action Taken/Committee Recommendation(s)7. ,

• Motion made by: Momrseconded by:

Item passed unanimously: Item sed on a divided vote:

Item failed unanimously: . Item farf a divided vote:

Follow-up (if necessary):

2. Upcoming Housing Committee items

a. Dallas Housing Finance Corporation Projectsb. 2012 Low Income Tax Credit Projectsc. MAP Program Updatei HOPWA Planning Update

Meeting Adjourned by CM Carolyn R. Davis

Meeting Adjourned: 12:39 kM.

Approved By:

Memorandum

CITY OF DALLAS

DATE May 18, 2012

TO Housing Committee Members: Carolyn R. Davis, Chair, Scott Griggs, ViceChair, Dwaine Caraway, Linda Koop, and Pauline Medrano

SUBJECT North Texas Community Development Association

On Monday, May 21, 2012, you will be briefed on North Texas CommunityDevelopment Association. A copy of the briefing is attached.

Please let me know if you have any questions.

Ryan S. EvansAssistant City Manager

C: The Honorable Mayor and Members of the City CouncilMary K. Suhm, City ManagerRosa A. Rios, City SecretaryTom P. Perkins, Jr., City AttorneyCraig Kinton, City AuditorC. Victor Lander, Administrative Judge, Municipal CourtA.C. Gonzalez, First Assistant City ManagerForest Turner, Assistant City ManagerJill A. Jordan, P.E., Assistant City ManagerJoey Zapata, Assistant City ManagerJeanne Chipperfield, Chief Financial OfficerJerry Killingsworth, Housing/Community Services DirectorStephanie Pegues-Cooper, Assistant to the City Manager

“DaVas, The City That Works: Diverse, Vibrant and Progressive.”

North Texas Community Development Association May 21, 2012

Dallas Needs Housing in Order to Capitalize on Booming Growth in the Region

City % Change, 2000 to 2010

McKinney 141.2%

Fort Worth 38.6%

Grand Prairie 37.6%

Plano 17%

Irving 12.9%

Mesquite 12.3%

Arlington 9.8%

Dallas 0.8%

2

Depopulating Areas Offer Opportunities for Revitalization

3

Dallas Needs More Affordable Housing Options

39% of households in the City of Dallas live in asset poverty; this is higher than in Dallas County, North Texas, Texas, and the United States

40.3% of homeowners in the City of Dallas are cost burdened; this is higher than in Dallas County, North Texas, Texas, and the United States

45.8% of Dallas residents are homeowners; this is lower than the rates in Dallas County, North Texas, Texas, and the United States

Housing is less affordable in Dallas than in Dallas County, North Texas, and Texas

4

Dallas Assets and Opportunity Profile (February 2012), available at www.cftexas.org

Dilapidated Properties in the City of Dallas

5

Blight Hinders Development

Derelict, abandoned, and incompatible use properties condemn the surrounding community to continued disinvestment and create a substantial drain on public resources that must be borne by surrounding residents and neighborhoods.

6

It Costs More to Live with Blight Than It Would Take To Solve the Problem Blight drains the City operating budget due

to tax delinquencies, code enforcement, crime, fires, judicial actions, etc.

Blight depresses the value of surrounding properties—the “broken window” theory

Dallas Area Habitat for Humanity has hired UNT to analyze and quantify the costs of blight in Dallas (likely December 2012)

7

NTCDA: Who We Are and What We Do The mission of the North Texas Community Development

Association (NTCDA) is to assist low-income individuals and families, including those with special needs, to obtain affordable housing and to pursue activities that will build, strengthen and encourage the growth of healthy neighborhoods.

8

NTCDA Members: Stabilize Neighborhoods Increase Tax Base Increase Stability Maintain Lots Acquire and Demolish Blight Support Neighborhoods Through Capacity

Building, Partnerships, Advocacy Serve Special Needs Populations (homeless,

AIDS, formerly incarcerated, elderly, etc.)

9

We Increase the Tax Base

The City of Dallas has 20,739 unimproved residential lots (vacant lots)

If 15% were developed as affordable homeownership units: ◦ 3,110 new homes valued at $100,000 ◦ With homestead exemption ◦ Return $6.5M in property tax per year at

2011 tax rates

10

We Implement

NTCDA members have active projects in several growSouth focus areas, including Lancaster Corridor, West Dallas Gateway,

DART Green Line Corridor, Inland Port & North Oak Cliff

NTCDA members provide a proven, successful means to

strengthen & engage neighborhoods

NTCDA’s focus on eliminating blight and Dallas Habitat’s

recently-commissioned UNT blight study empowers a Culture

of Clean

Affordable homeownership provides a double bottom line by increasing the City’s tax base and

the individual homeowner’s assets and financial security

11

We Invest in Target Areas

12

HOW CAN THE CITY BETTER PARTNER WITH US?

13

Expand Funding For Organizations and Projects That Serve Families With Incomes Below 80% AMI

Report annually on total public investments, the outcomes of those investments, and planned future investments in the area

Geographically align home repair and home replacement programs with other City-funded revitalization efforts

Increase funding for projects, including a revolving interim construction financing line of credit

14

Increase Funding for Mortgage Assistance Program Developers will build where there is demand

to buy the product Area residents are choosing to live outside

the City limits—Dallas needs an incentive to entice people to invest their housing dollars within the City

Citywide MAP funds were depleted this year in April—half way through the program year

Use an income-tiered approach to stretch available funding 15

Reduce or Eliminate Fees for Building Permits, Fire, Water, Plats Encourage developers to build affordable

homes by decreasing the development costs in exchange for affordability commitments

Encourage development in disinvested and aging areas to take advantage of existing infrastructure by equalizing the costs of infill vs. subdivision construction

The City should unlock the value of its urban land and convert its vacant spaces into vibrant places

16

Promote a Culture of Clean

Prioritize the elimination of blight Incentivize development in formerly-

blighted or depopulating areas Appoint a senior staff member whose

sole responsibility is to repurpose vacant, abandoned, and problem properties within the City—we need to understand the nature and magnitude of the problem in order to address it

17

Actively Engage NTCDA Members in Planning Process Effectively utilize HUD’s new eCon Planning

Suite to make data-driven and place-based planning decisions as part of the Consolidated Planning process

Set up specific workshops to teach NTCDA members how to use the new tools and to explain how the City intends to implement this new approach

Work closely with community development professionals to draft the Consolidated Plan

18

Don’t Allow The Whims of Washington to Dictate Dallas’ Future Support the general obligation bond

funding for economic development and housing

Add $400,000 from general fund to support CHDO operations and marketing

Coordinate national lobbying efforts with CHDOs to conserve federal funding

Dallas can not grow by leaving disinvested communities behind 19

KEY FOCUS AREA: Economic Vibrancy

AGENDA DATE: May 23, 2012

COUNCIL DISTRICT(S): 9

DEPARTMENT: Housing/Community Services

CMO: Ryan S. Evans, 670-3314

MAPSCO: 37V

SUBJECT

Authorize a forgivable loan in the amount of $200,000 to Defenders of Freedom for thedevelopment of affordable housing for veterans to be located at 8714 and 8718Diceman Drive — Not to exceed $200,000 - Financing: FY 2010-11 HOME InvestmentPartnership Program Grant Funds

BACKGROUND

In December 2011, Defenders of Freedom submitted a proposal to the City of Dallas forthe development of two (2) affordable housing units for veterans.

Defenders of Freedom is a nonprofit 501(c)(3) organization that supports active dutyand wounded men and women serving our nation. The organization was formed in2004 to provide for the needs of the Troops. The most common needs are for rent, giftcards, bills, car payments, miscellaneous repairs, or GPS systems for those withTraumatic Brain Injury or Post Traumatic Stress Disorder. The organization provides anavenue for the community to support the Troops through in-kind and monetarydonations. Defenders of Freedom also conducts regular fund raisers.

The organization proposes to undertake the development of two properties at 8714 &8718 Diceman to provide two (2) single family housing units for wounded veterans. Theorganization will match a minimum of $200,000 for the two units and select the eligiblehomeowners, subject to City of Dallas final approval.

The funds for the forgivable loan will be provided through FY 2010-11 HOMEInvestment Partnership Program Funds from the Department of Housing and UrbanDevelopment (HUD) which the City Council appropriated for housing developmentssuch as this. The predevelopment and construction work should be complete within ayear with occupancy within the same year.

BACKGROUND (continued)

The homes will be owned by the eligible veterans and carry a 15 year forgivable loanand deed restriction. The homeowners will not be required to repay the loan providedthat they comply with the affordability requirements and other City requirements (e.g.insurance, codes). The loan will be forgiven

1115th

annually following the completion ofconstruction and the transfer to the veteran owner(s).

City Council approval of this agenda item will authorize the City Manager to execute theforgivable loan agreement with Defenders of Freedom for these HOME InvestmentPartnership Funds, subject to environmental review by the City of Dallas and HUD. Theforgivable loan agreement will provide one (1) year for the construction and transfer ofthe units.

PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)

On June 23, 2010, the City Council approved the City of Dallas FY 2010-11Consolidated Plan Budget which included the HOME Investment Partnership Funds, byResolution No. 10-1594.

FISCAL INFORMATION

FY 2010-11 — HOME Investment Partnership Program Grant Funds - $200,000

BOARD OF DIRECTORS

Donna Cranston, Chairwoman and FounderTom Foley, Board MemberLinda Robinson, Board MemberLaurie Flynn, Board MemberJoan Anderson, Board MemberRichard Lane, Board Member

MAP(s)

Attached

Agenda Date 05/2312012 - page 2

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COUNCIL CHAMBER

May 23, 2012

WHEREAS, affordable housing for veterans is a high priority of the City of Dallas; and

WHEREAS, on June 23, 2010, the City Council approved the FY 201 01 1 ConsolidatedPlan Budget which included the HOME Investment Partnership Program Funds byResolution No. 10-1594; and

WHEREAS, Defenders of Freedom proposed to work with the City of Dallas toundertake the development of the two (2) affordable units for veterans at 8714 & 8718Diceman Drive; and

WHEREAS, the City desires for Defenders of Freedom to develop affordable units forveterans; NOW THEREFORE,

BE RESOLVED BY THE CITY COUNCIL OF THE CITY OF DALLAS:

Section 1. That following approval as to form by the City Attorney, the City Manager isauthorized to execute a forgivable loan in the amount of $200,000 to Defenders ofFreedom for the development of affordable housing to be located at 8714 and 8718Diceman Drive for veterans

Section 2. The terms of the loan agreement include:(a) Defenders of Freedom must execute a note payable to the City of Dallas

for $200,000 for the loan.(b) Defenders of Freedom must build and transfer the affordable units to

veterans with incomes at or below 80% of area median family income.(c) Defenders of Freedom will execute a Deed of Trust Lien and a Deed

Restriction on the property which will carry a 15 year term for theaffordable units.

(d) Defenders of Freedom will have one (1) year to fully complete theproject.

Section 3. That the City Controller is hereby authorized to disburse funds inaccordance with this resolution and the terms and conditions of the loan agreementwith Defenders of Freedom as follows:

FUND DEPT UNIT OBJ CT VENDOR AMOUNTHM1O HOU 463C 3015 HOU4683CH684 VS0000070783 $200,000

Section 4. That the City Controller is hereby authorized to modify receivable balancesheet account (033F) and an allowance for uncollectible debt (022D) in fund HM1O forthe amount of the loan.

Section 5. That this resolution shall take effect immediately from and after its passagein accordance with the Charter of the City of Dallas, and is accordingly so resolved.