DPFC approves term sheet to convert Stemmons extended‑stay hotel into workforce housing

The Dallas Public Facility Corporation on June 24 authorized staff to negotiate and execute a term sheet with GoodHomes for an adaptive‑reuse project at 6950 N. Stemmons Freeway that would convert an extended‑stay hotel into workforce housing.

The board approved the item by roll call after hearing a presentation from GoodHomes representatives and staff. Director Stone made the motion to approve, seconded by Director Winters. The vote passed with approval recorded for all members present.

GoodHomes’ presenter Leila Feldman described the company’s adaptive‑reuse model and projected timeline. She said the company plans to close in September and to deliver the first renovated units within about six months after closing. "We converted distressed hospitality properties into workforce and affordable housing," Feldman said, summarizing the sponsor’s experience in other cities. The development team told the board it expects to produce roughly 142 units in the Dallas Medical District and to complete a $7 million+ renovation package.

Affordability and unit mix: GoodHomes’ proposal included an affordability matrix that, as presented, listed 35% of units at 80% AMI, 45% at 60% AMI and 5% at 30% AMI; presenters also described the remainder as market‑rate. The percentages presented in the packet as read aloud do not sum to 100 and staff and some board members noted that discrepancy in real time; staff said they will verify and reconcile the unit‑mix math as part of diligence.

Tax and revenue implications drew substantial board attention. Staff said the property’s current DCAD valuation is about $8.9 million and that an abated stabilized tax estimate used by staff yields roughly $330,000 in abated taxes; under typical DPFC terms (25% share) that would equate to an annual lease payment of roughly $82,000. Braxton noted that, for this project, the payment in the packet was nominal (about $25,000 annually) and described that level as essentially covering administrative expenses. Braxton said the development pro forma is tight but that there may be room to negotiate terms with the developer.

Other diligence items and concerns raised by the board included parking requirements (the site is in a planned development district and will use existing parking rules), the council district and councilmember outreach, elevator and mechanical systems for multiple buildings on site, and whether the PFC should seek deeper affordability (more 30% AMI units) in exchange for changes to the lease terms. Summer clarified that conversions from hospitality to housing do not count as "acquisitions" under the PFC statute and therefore are subject to the new‑construction/ conversion framework in the statute rather than the acquisition affordability rules staff applies to occupied multifamily acquisitions.

Next steps: staff and the developer will continue due diligence on the property condition, tax calculations and the affordability matrix, reconcile the unit‑mix percentages in the packet, and return to the board with final documents. The board approved the negotiation and execution of the term sheet so that the developer may continue to advance toward the stated September closing.