Discussion on the Dallas Public
Facility Corporation and Dallas
Housing Finance Corporation
Housing & Homelessness
Solutions Committee
October 29, 2024
,
Cynthia Rogers-Ellickson, Director
Jaclyn Schroeder, Interim Manager
Housing & Community Development
1
Purpose of the Presentation
• To provide general information on Dallas Public Facility
Corporation (DPFC) and Dallas Housing Finance
Corporation (DHFC) purposes and processes
• To discuss potential revenue uses
• To discuss the long-term future of the DPFC and DHFC
• To discuss short-term plan for applications
2
DPFC Background
• Created by the City of Dallas on June 24, 2020 under Chapter 303 of the Texas Local Government Code
• DPFC project must ensure that:
• there is no source of income discrimination at the property
• the project affirmatively furthers fair housing in the City of Dallas
• the developers and property managers of DPFC projects engage in affirmative marketing plans
• future residents receive enhanced protections for the life of the property
• a diverse unit mix to provide housing options for families with children
• all DPFC projects are in alignment with the Dallas Housing Policy 2033 and adhere to the broader affordable
housing industry’s rent and income standards
• AMI targets are adjusted for family size
• rent restrictions are based on 30% of the applicable AMI restricted levels as established by HUD, TDHCA
• City Council appoints the 15-member Board of Directors
• The Board manages the property and affairs of the DPFC, in collaboration with other DPFC vendors:
• Bracewell LLP is used for all legal services including closings
• Hilltop Securities Inc. is used for all project evaluation including underwriting and financial review
• Brown, Graham & Company PC for all accounting services
3
DHFC Background
• Created by the City of Dallas in 1984 under Chapter 394 of Local Govt. Code
• The primary goal of the DHFC is to support the broad goals of the City of Dallas’ Housing Policy to:
• Create and maintain affordable housing throughout Dallas;
• Promote greater fair housing choices; and
• Overcome patterns of segregation and concentrations of poverty through
• City Council appoints the 15-member Board of Directors
• The Board manages the property and affairs of the DHFC, in collaboration with other DHFC vendors:
• Chapman & Cutler is used for all legal services including closings
• Hilltop Securities Inc. is used for all project evaluation including underwriting and financial review
4
Current DPFC Project Proposal Review Process
• Application (attached as Appendix A)
• Online access
• List of items required for submission
• Staff Review
• City staff review for completeness and general consideration
• Discuss application requirements and needs with developers
• Discuss terms after negotiated
• Underwriting
• Third-party underwriter reviews for “if not for PFC, the project would not be feasible”
• Requires that tax abatement will not unduly enrich the developer
• Underwriter makes recommendation to the Board and Outside Counsel
• Outside Counsel Consideration
• Confers with the Board and developer on feasibility and terms
• Drafts legal documents
• Preliminary Board Approval
• City Council Approval (HHSC and Council)
• Final DFPC Board Approval
5
Current DHFC Project Proposal Review Process
• Application (attached as Appendix B)
• Online access
• List of items required for submission
• Submissions emailed or physically delivered to staff with Application fee
• Staff Review
• City staff review for completeness and general consideration
• Discuss application requirements and needs with developers
• Discuss terms after negotiated
• Engage outside counsel and financial advisors for project feasibility
• HFC Financial Advisor Consideration
• Third-party underwriter reviews
• Determines “public benefit” calculation of project
• Underwriter makes recommendation to Staff, the Board and Outside Counsel
• DHFC Counsel & Bond Counsel Consideration
• Confers with the staff and developer on feasibility and terms
• Drafts legal documents for board approval
• DHFC Board Approval
• Housing and Homelessness Solutions Committee Meeting
• City Council Approval
6
DPFC Revenue and Expenses
FY 2023 FY 2024
Revenue:
Application Fees $ 55,050 $ 10,000
Development/Structuring Fees $ 1,458,998 $ 2,080,853
Total Revenue $ 1, 514,048 $ 2,090,853
Expenses
Salaries/Benefits $ 199,576 $ 210,929
Professional Services $ 33,575 $ 165,000
Office Expense $ 948 $ 1,450
Property/Liability Insurance $ 11,898 $ 14,292
Conference/Travel Expense $ 5,272 $ 6,550
Total Expenses $ 251,269 $ 398,221
Change in Net Position: $ 1,262,779 $ 1,692,631
Net Position:
Beginning FY $ 875,073 $ 2,137,853
Ending FY $ 2,137,853 $ 3,830,485
7
DHFC Revenue and Expenses
FY 2023 FY 2024*
Revenue:
Annual Issuer Fees $ 352,854.00 $ 362,298.00
Application Fees $ 95,000.00 $ 55,000.00
Developer Fees $ 1,052,274.00 $ 388,229.00
Closing Fees $ 490,295.00 $ 1,389,151.00
General Contractor Fees $ 564,047.00 $ 632,846.00
Partnership Management Fees $ 12,019.00 $ -
Structuring, Transfer, and Assumption Fees $ 25,835.00 $ -
Land Lease Income $ 1,038,593.00 $ 807,005.00
Distribution Income $ 241,170.00 $ -
Other Revenue $ 2,860.00 $ 10,583.00
Total Revenue $ 3,874,947.00 $ 3,645,112.00
Expenses:
Salary & Related Benefits $ 145,068.00 $ 159,123.00
Professional Services $ 73,570.00 $ 53,077.00
Office Expense $ 25,484.00 $ 29,419.00
Property and Liability Insurance $ 21,706.00 $ 17,066.00
Conference and Travel Expense $ 42,914.00 $ 18,293.00
Consulting Services $ - $ 8,133.00
$ - $ -
Total Expenses $ 308,742.00 $ 285,111.00
Net Operating Income: $ 3,566,205.00 $ 3,360,001.00
Investment Income: $ 250,938.00 $ 315,457.00
Change In Net Position: $ 3,817,143.00 $ 3,675,458.00
*Through 8/31/2024
Net Position (January 1, 2023) : $ 16,168,678.00
Net Position (December 31, 2023): $ 19,985,821.00
Net Position (As of August 31, 2024): $ 23,661,279.00
8
Policies and Practices for Discussion
Issue Current Status Questions for Discussion
Revenue • DHFC has a cash • How should existing DHFC/DPFC revenues be used?
balance of $3.8M. • How should future revenue be used?
• DPFC has a cash
balance of $23.6M.
• The corporations
retain all revenue.
Location • DHFC and DPFC may • Does the current policy concentrate poverty or otherwise impede
own/construct an the City’s obligation to affirmatively further housing?
unlimited number of • Should projects be limited to high opportunity areas (poverty rates
projects anywhere in below 20%)?
the City of Dallas. • Should the total number of annual projects be limited?
• Should we consider proximity guidelines, similar to LIHTC projects?
• Should we prohibit these tax-exempt projects in TIF districts, since
exemptions limit the TIF district’s ability to generate increment?
9
Policies and Practices for Discussion
Issue Current Status Questions for Discussion
Approval • Currently the • Should the City staff review to ensure that the DHFC/DPFC
Process DHFC/DPFC staff review projects advance the City’s policy goals?
and approve projects. • Currently DHFC/DPFC determine the incentive terms. Should
• Housing and Community the City staff/underwriters weigh in on the term sheet?
Development staff is not • Should City approval come after all board approvals?
part of the project • The DPFC bylaws specify that City approval of projects is not
review/approval required at all. Should that by amended?
process.
Control • DPFC/DHFC are separate • Should the boards be staffed by Housing and Community
legal entities with their Development staff, rather than hiring DPFC/DHFC staff?
own staff and advisors. • Should City officials be added as ex officio board members,
• No city staff or elected similar to the Dallas Economic Development Corporation board
officials are on the (City Manager and Economic Development Director are both ex
board. officio board members, attend all meetings and executive
sessions).
• What is the role of CAO versus Outside Counsel?
10
Next Steps
How are DHFC/DPFC projects managed while HHSC and Council review the processes and bylaws of the
entities? Three options are outlined below:
Continue As Is Halt New Applications, Stop all Actions Until
But Continue with the Processes and
Existing Applications Bylaws are Updated
• Continue accepting • Direct the DPFC/DHFC to stop • Direct the DPFC/DHFC to stop
DHFC/DPFC project accepting new project accepting new projects
applications. applications as of today, but to applications as of today.
• Continue to bring board complete review of any pending • Direct the DPFC/DHFC to halt
approved projects to HHSC applications. review of all pending
and Council for review while • Continue to bring these existing applications.
the processes and bylaws applications to HHSC/Council as • No projects come to
review is ongoing. they are approved by the board. HHSC/Council until the
processes and bylaws review is
complete.
11
Next Steps
• Please submit any comments, proposed process changes,
and proposed bylaws changes for the DHFC and DPFC to
DHFCBylawDiscussion@dallas.gov or
DPFCBylawDiscussion@dallas.gov
Timeline for Review
• Submit Changes: Committee to submit comments and changes by the end
of November 2024
• Draft Proposals: CAO and Staff to develop proposal based on Committee
feedback. Will brief the proposal to the DPFC/DHFC boards in December
2024, and will brief HHSC in January 2025
• Council Action: Committee’s final recommendations will be presented to
Council in February 2025
12
Discussion on the Dallas Public
Facility Corporation and Dallas
Housing Finance Corporation
Housing & Homelessness
Solutions Committee
October 29,2024
,
Cynthia Rogers-Ellickson, Director
Jaclyn Schroeder, Interim Manager
Housing & Community Development
13
Appendix
14
Appendix A (Double Click on the Image)
15
Appendix B (Double Click on the Image)
16
APPENDIX C
DPFC Property Value, Tax, Rental Savings, and Revenue
75-Year Projection 60-Year Projection
Project Assessed City Tax IF TAXABLE, 75-Year Tax 75-Year 75-Year 60-Year Tax 60-Year 60-Year
Property Amount One Improved Exemption Rental Revenue Exemption Rental Revenue
Value One Year Prior to Projected City Savings Savings
Year Prior to PFC Purchase Tax Year 1
Purchase
Banyan Flats $ 5,858,494 $ 124,493 $ 379,854 $ 97,088,550 $112,306,919 $ 87,764,864 $ 57,854,484 $ 66,739,904 $ 52,569,892
Oakhouse at $ 3,653,940 $ 4,150 $ 283,834 $ 72,415,456 $105,971,264 $ 46,344,552 $ 43,099,029 $ 63,059,140 $ 27,876,341
Colorado
Mountain $ 5,519,586 $ 10,864 $ 376,857 $ 96,137,366 $ 65,860,013 $ 77,924,753 $ 57,212,852 $ 39,205,892 $ 46,704,991
Creek
Apartments
Standard at $ 9,000,000 $ 10,321 $ 430,650 $109,897,267 $160,826,698 $102,707,554 $ 65,416,623 $ 95,738,732 $ 61,392,663
Royal
Standard $ 10,083,720 $ 13,977 $ 390,921 $ 99,711,148 $ 30,583,673 $ 51,722,178 $ 59,334,002 $ 18,207,980 $ 31,064,733
Shoreline
Coop at $ 4,000,000 $ 16,188 $ 230,226 $ 58,842,913 $ 31,272,406 $ 41,290,932 $ 35,063,508 $ 18,616,191 $ 24,764,975
Singleton
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APPENDIX C
DPFC Property Value, Tax, Rental Savings, and Revenue
75-Year Projection 60-Year Projection
Project Assessed City Tax IF TAXABLE 75-Year Tax 75-Year 75-Year 60-Year Tax 60-Year 60-Year
Property Amount One Improved Exemption Rental Revenue Exemption Rental Revenue
Value One Year Prior to Projected City Savings Savings
Year Prior PFC Tax Year 1
to Purchase Purchase
Coop at $ 3,595,447 $ 31,323 $ 203,335 $ 51,977,666 $ 56,466,944 $ 38,755,739 $ 30,975,758 $ 33,614,280 $ 23,262,655
Bluffview
The Park at $ 5,647,063 $ 108,089 $ 719,716 $178,149,839 $147,011,186 $102,907,468 $105,977,538 $ 87,497,487 $ 61,530,269
Northpoint
The Elms $ 875,000 $ 3,469 $ 144,336 $ 36,888,278 $ 74,544,654 $ 64,238,633 $ 21,980,123 $ 44,375,783 $ 38,416,826
Cambridge at $ 12,698,147 $ 25,317 $ 393,025 $100,444,854 $168,337,699 $ 56,376,737 $ 59,850,391 $ 100,209,966 $ 34,095,089
Bishop Ridge
Bishop 8th $ 12,561,214 $ 58,427 $ 342,211 $ 87,458,381 $211,421,001 $ 57,974,020 $ 52,112,356 $125,857,080 $ 34,768,582
Maple $ 3,575,000 $ 18,115 $ 165,138 $ 42,205,030 $ 47,176,489 $ 31,151,207 $ 25,148,384 $ 28,083,753 $ 18,756,740
Highline
The Cedars $ 849,370 $ 21,322
Totals $77,916,981 $ 446,058 $ 4,060,013 $1,031,216,748 $1,211,781,946 $759,159,637 $614,025,138 $721,206,187 $455,203,755
18
