Becky King, managing director of Community and Neighborhood Development, told the Development Services Committee on Oct. 14 that the city has contracted CZB Consulting to study Garland housing and incentive programs and will present high-level findings at a Nov. 3 work session. As part of a pilot tied to the committee's request, staff proposed buying one property in the bounded 380 area (the Where the Heart Is target area) as a demonstration house for neighborhood outreach and to produce real cost data for potential incentive design.

Jason Wilhite, community development construction manager, said staff identified 801 Woodland in Freeman Heights and worked with the Garland Housing Finance Corporation (GHFC) to pursue the property. The city secured a GHFC commitment to take an acquisition hit of about $200,000 toward the pilot; staff estimated closing and carrying costs of about $22,500 and an acquisition reimbursement of roughly $13,000. Wilhite presented two development options:

Option 1: Deep renovation of the existing house and an approximately 450-square-foot addition. Staff estimated preliminary planning, engineering and environmental work at about $7,500, existing-structure repair costs roughly $160,000 (adjusted for inflation), and a total estimated rehabilitation cost of about $301,000 (with an expectation the number could rise $20,000'$30,000).

Option 2: Demolish and build new. Staff estimated demolition/site clearing at about $15,000, surveying/engineering/soils and plans around $12,050, and construction (based on current numbers) at about $305,000 for roughly a 1,650-square-foot home (about 2,300 square feet under roof). With similar carrying/closing costs and acquisition reimbursement, the total construction cost was estimated at about $368,000.

King said the pilot will be used to generate real-world acquisition, renovation and resale numbers so the council can design incentives tailored to the neighborhood's housing stock. Committee members largely favored Option 1 (rehab with an addition) as a better demonstration for existing homeowners because it shows feasible improvements rather than a wholesale teardown that many neighbors would not pursue. King said the finished property would be sold as an affordable home through the city's housing department and would be used to showcase what can be achieved while honoring neighborhood character.

Staff said they will break out cost line items (for example, windows, doors, specific interior repairs and the addition) so that residents can see incremental costs. They also plan outreach tied to community events: the design committee will narrow identity concepts and the city will attend a block party at Collin Park on Oct. 30 to solicit homeowner input. The committee directed staff to proceed with Option 1 and said that staff should present the neighborhood engagement results and pilot details in a subsequent council report.