Mixed-Income Housing Development Bonus Funds Slated For St. Jude Project in Lake Highlands
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A representative of Dallas Neighbors for Housing raised a good question when asked last week about the city manager’s recommended budget. Adam Lamont, a District 10 resident, wondered aloud what’s happening with the Mixed-Income Housing Development Bonus, a fund created last year to incentivize developers to build affordable units. Those who opt not to build such units pay a fee-in-lieu that goes into the MIHDB bucket dedicated to affordable housing.
So how will that bucket be doled out, Lamont asked.
At Wednesday’s Dallas City Council meeting, his question was answered.
Using The Mixed-Income Housing Development Bonus Fund
Dallas County and the City of Dallas entered a cost-share agreement Wednesday to create permanent supportive housing for the homeless at a former extended-stay hotel purchased by St. Jude Centers.
The City of Dallas is on the hook for about $3 million of the $11 million project, and documents show they plan to use funds from the Mixed-Income Housing Development Bonus Fund.
The rest of the funds will come from St. Jude Catholic Charities, Dallas County American Rescue Plan Act funds, and a $3 million Frost Bank loan.
Vantage Point Permanent Supportive Housing
The former extended-stay hotel on the north side of Vantage Point Drive west of Greenville Avenue was rezoned in May. At that time, a representative from St. Jude Centers outlined the plan to redevelop the site and provide 132 affordable transitional housing units.
The 2.9-acre site was deemed “Hotel from Hell” by neighbors. Several plans were considered before the Dallas City Council reached an agreement with St. Jude Centers.
On Wednesday, Dallas County entered the mix, as the two governmental bodies entered into an agreement to share costs for the project. A third-party service provider will manage rental subsidies and housing vouchers for future residents.
District 14 Councilman Paul Ridley lauded the project and the city’s commitment to using MIHDB funds to support it.
“It represents cooperation and collaboration between the city and the county to address a joint concern for the homeless,” Ridley said. “Secondly, it will be utilizing $3 million from the Mixed-Income Housing Development Bonus Fund, which we authorized a year ago in May through in-lieu payments by developers in lieu of building affordable housing units. I think this represents a very constructive use of the funds that were created in that fund, from developments in my district as it turns out. I’m looking forward to future opportunities to deploy those funds for the construction of more affordable housing in the city.”
As a condition of receiving grant funding, the city will require a 15-year deed restriction of the property ensuring the purpose of providing affordable housing and servicing low-income residents earning a household income between 0 to 80 percent of the Area Median Income (AMI), according to the agreement approved Wednesday.
Of the 132 units, 30 percent of the affordable units will be reserved for residents earning a household income at or below 30 percent AMI. Forty percent of units will be reserved for residents earning at or below 60 percent AMI, and 30 percent of units will be reserved for residents earning at or below 80 percent AMI.
“Residents will pay affordable rents with the remainder of the nominal rental rate paid from housing subsidies arranged by [St. Jude] in collaboration with City Square, VASH, Metrocare, and other nonprofits working directly with the homeless population,” the agreement states.
St. Jude Vantage Point
St. Jude Inc. is a subsidiary of Catholic Housing Initiative, which has developed projects in Dallas City Council Districts 11 and 13.
The successful models operated by Catholic Charities of Dallas at 2920 Forest Lane and 8102 Lyndon B. Johnson Freeway have been identified as the blueprint for long-term supportive services and housing for the Vantage Point site, officials said Wednesday.
St. Judge plans to open the housing development in early 2024.
District 10 Councilwoman Kathy Stewart thanked the Catholic Housing Initiative and Catholic Charities for bringing the St. Jude Center to Lake Highlands.
“I look forward to working with everyone involved,” Stewart said. “I really believe the District 10 community will find ways to support the St. Jude Center at Vantage Point.”
