HUD Funds Come up Once Again in Dallas City Council Budget Amendment Talks

The City of Dallas has about $32 million from the U.S. Department of Housing and Urban Development to spend this budget year. The HUD funds will go toward housing programs covered by the city’s Community Development Block Grant program and Home Investment Partnerships Program, among other initiatives. 

City Council members were briefed Wednesday on how they can allot the dollars designated in the final year of the five-year plan for HUD funds. Council members also reviewed several proposed budget amendments, reiterating priorities related to housing. 

“I think we need to continue to stay focused on affordable housing,” said District 7 Councilman Adam Bazaldua, who is seeking re-election Saturday against Tracy Dotie Hill, Marvin E. Crenshaw, and Okema Thomas.

One of the budget reallocations — to create permanent supportive housing for the homeless at the former Miramar Hotel — was approved during a council meeting last week to expedite the process.

Using HUD Funds

Councilwoman Cara Mendelsohn questioned how few first-time homebuyers are assisted through the city’s grant-funded programs, CDBG and HOME. She suggested instead of using a $400,000 allocation for less than 20 first-time homebuyers, the funds could be used to upgrade sidewalks and bring infrastructure into compliance with the American Disabilities Act. 

The dollars don’t stretch very far and end up getting reallocated if not enough people apply for them, Mendelsohn explained.

“We’re so desperate for these sidewalks and I have a feeling we’re just going to end up reprogramming this money anyhow,” she said, noting that her constituents have asked for sidewalks to help thousands of youth walk safely to school.

City Manager T.C. Broadnax said it’s a high priority of the council to provide assistance to first-time homebuyers and a sidewalk master plan already is in place to address infrastructure needs.

“These [CDBG] funds are targeted specifically for that kind of activity,” he said of housing programs. “We don’t typically use general funds for down payment assistance programs. The funding source and the precision of that funding source should match the solution. It does not seem congruent with how we’ve approached using CDBG funds.” 

The $400,000 would only fund about four blocks of sidewalks, Broadnax later added. 

Without support from other council members, Mendelsohn withdrew her motion to reallocate the CDBG funds.

Bazaluda said city leaders should “not talk out both sides of their mouths” when it comes to housing affordability. 

“We’ve got to be more aggressive and serious about addressing our affordable housing need in this city,” he said. 

A public hearing on the HUD fund is scheduled for May 24 with the final adoption of the HUD Consolidated Plan Budget on June 14.

Budget Amendments 

Council also reviewed budget amendments that affect the city’s general fund, grants and trusts, and capital fund. 

Budget Director Janette Weedon explained the justification for budget amendments, adjusting for excess revenues to support things like overtime pay for Dallas Fire Rescue, fuel costs, and a heating system at City Hall. 

Capital funds were amended to support several Dallas Water Utilities projects, including stormwater drainage management and fleet replacement. 

Chief Financial Officer Jack Ireland acknowledged, “This is a pretty complex briefing.”

“There’s a lot of movement of funds,” he said. “We didn’t want to leave out any details, so you got a lot of details.” 

Council members asked a lot of questions and generally supported amendments as proposed by staff. Because the HUD funding and budget amendments were posted as briefing items, no votes were taken, but they’re expected to appear on future meeting agendas for a vote and any additional amendments proposed by the council.

District 1 Councilman Chad West, who is seeking re-election Saturday against Mariana Griggs and Albert Mata, pointed out a $5.7 million allocation for “building permitting and land management solution software” in the Development Services Department. 

“I just want to say generally … anything we need to do in our permit office to make it the most efficient, effective permit office in the country … I would support increases in fees if that’s what it takes to continue improving on our permitting efficiencies,” he said.