Housing Advocates Weigh in on City Manager’s Recommended $4.63 Billion Budget
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Housing doesn’t typically get a massive piece of the pie in a municipal budget because a lot of dollars come from federal funds, grant programs, tax-increment financing districts, and other mechanisms already in place.
Dallas, however, has made affordable housing a priority, and CandysDirt.com is taking a closer look to see if they’re putting their money where their mouths are.
Dallas City Manager T.C. Broadnax is recommending a $4.63 billion budget based on a decreased tax rate of 73.93 cents per $100 assessed valuation. If approved in September, this will be the eighth consecutive year the Dallas City Council has reduced the property tax rate.
But there’s a long way to go before it’s approved.
Budget town hall meetings are scheduled in every City Council district from Aug. 10-24.
The Dallas City Council meets at 9 a.m. Tuesday, Aug. 8, for the first budget workshop of the season.
The council is expected to propose amendments throughout the budget process, with adoption slated for late September. The new fiscal year begins Oct. 1.
Broadnax’s 724-page recommended budget book is posted online, along with previous budgets.
Housing Budget
While the housing budget isn’t massive relative to the overall $4.63 billion-with-a-B figure, it nets a steady revenue stream through grants and reimbursements. Additionally, investment in economic development, infrastructure, and homeless solutions can contribute to an attractive landscape for builders and developers.
The City of Dallas is proposing about $6.9 million in the 2023-24 service budget for Housing and Neighborhood Revitalization, up from about $4.7 million in 2022-23. The funds go toward housing administration, preservation, and new development.
City Manager Broadnax told reporters in an exclusive budget preview Thursday that the senior home repair program is getting a boost to the tune of $1.7 million. Other allocations address infrastructure investments in equity priority areas.
“We’re going to invest $100,000 into our fair housing equity plan to really bring it into alignment with our city’s Racial Equity Plan, particularly from a housing perspective,” Broadnax said during a short webinar with local reporters on Thursday.
About $1.5 million will be added for contractual services to decommission homeless encampments. About $1.4 million is recommended for a short-term rental “regulations enforcement team.”
The recommended budget shows about $20.5 million coming in from “additional resources” for housing, including the Community Development Block Grant and HOME Investment Partnership funds.
Housing Advocacy
Adam Lamont, founder of Dallas Neighbors for Housing and a teacher who lives in District 10, has advocated for more affordable housing throughout the city. He said Friday he plans to take a closer look at the draft budget.
“Something I am looking for is where the revenues from any fee-in-lieu deals from the [Mixed-Income Housing Development Bonus] are going,” Lamont told CandysDirt.com.
Lamont is referring to the MIHDB fund, created by the Dallas City Council last year to provide incentives like changes in height, floor area ratio, density, or parking reduction in exchange for on-site affordable units.
Developers can also pay a “fee in lieu” instead of providing those affordable units — so some of the developers getting the incentives aren’t providing affordable housing, but they are paying into the fund, which is designated for affordable units.
“Related, I haven’t heard anything about how the [Public Facility Corporation] is going to spend the revenues that they have generated from all of their deals in the past year,” Lamont added. “These are both income streams from housing that the city hasn’t had before, and I have not heard a lot of specifics about those plans.”
The budget proposal is disappointing but not surprising from a housing perspective, as the overall budget for Housing and Homelessness is $52 million out of the $4.6 billion budget. With federal COVID-19 relief funds running out, the lack of money for housing in the budget underscores the need for the city to make substantial investments in affordable housing through the 2024 bond. Due to the increase in the cost of housing in Dallas, we must be proactive in helping those communities and families most affected.
Additionally, adding more housing in Dallas is essential for spreading out the tax burden and allowing for current residents to not bear the burden of increased taxes. Planning and budget experts know that low-density development patterns create a financial strain on cities. To provide the high quality of services that we should have in Dallas, we must look at ways to increase our tax base and build more housing in the city.
Dallas Neighbors for Housing
Ashley Brundage, executive director of housing stability at United Way of Metropolitan Dallas, also weighed in.
“Our rental housing supply isn’t keeping pace with the demand and the city continues to lag in the production of for-purchase single-family homes and multifamily products like condos and duplexes,” Brundage told CandysDirt.com on Sunday. “These gaps are driven by several factors — including the underinvestment of city funds into affordable housing.”
She said she applauds the addition of $1.7 million to the senior housing repair program in “an otherwise predictable budget for the Housing and Neighborhood Revitalization Department.”
“The department annually receives less than 1 percent of the city’s general fund with its primary source of funding being federal grant programs,” Brundage added. “This is why the 2024 bond is so important. The Housing and Neighborhood Revitalization Department needs access to a new, larger, and more flexible funding source through the bond for housing preservation and new development.”
Brundage and Dallas consultant Bryan Tony launched the Dallas Housing Coalition in June, to fight for more housing dollars in the 2024 bond election.
“We have a golden opportunity to match funding with the city’s new housing policy and land use update,” Brundage said. “Devoting the energy and resources necessary to end the housing crisis we face is simply a question of political will to prioritize housing.”
The city aims to use $1 billion in bond funds, if approved by voters in May, for streets, parks, flood control, economic development, housing, homeless solutions, and critical facilities.
City officials have proposed up to $150 million in housing infrastructure for the bond issue. The recommended allocations will be presented by an appointed panel to the City Council in December.
