DHFC board warns that proposed housing‑department changes would curtail agency's work; committee hearing set April 22

The City of Dallas Housing Finance Corporation board spent substantial meeting time discussing proposed governance and policy recommendations prepared by the City of Dallas Housing and Community Development Department. Board leaders warned those recommendations—scheduled for consideration at the city’s Housing and Homelessness Solutions Committee on April 22—would severely curtail the corporation’s ability to deliver affordable housing without additional city cash subsidies.

Summary of board concerns: Board President Marcy Halton read a prepared statement explaining the DHFC’s mission, noting the corporation’s track record (35 properties representing 7,668 units overall, with many units serving households at 80% AMI and below) and outlining several recommendations from Housing that the board found problematic. The board’s objections included: proposals that would require additional approvals from Housing Department staff in addition to existing review layers (DHFC staff, DHFC board, HHSC committee and full city council), restrictions that would limit supported units to households at 30%–50% AMI (which would require much greater cash subsidy), and a new geographic constraint suggesting DHFC‑supported developments be limited to census tracts with at least 20% poverty. The board argued those changes would concentrate affordable housing in limited areas, contradict the city’s mixed‑income policy and federal civil rights and HUD obligations, and make projects unaffordable to build in higher‑cost areas without substantial new city dollars.

Process and transparency issues: Directors and the secretary raised concerns about a housing‑department survey released the prior Friday that solicited public input on proposed bylaw and policy changes. Board members said the DHFC was not informed in advance about the survey’s distribution, did not see the survey questions and were concerned the survey included leading questions and could be used to justify predetermined outcomes. Board members said they had been asked to provide feedback at prior meetings and via a March 4 convening but felt excluded from the drafting and outreach process.

Why it matters: Board leaders framed the DHFC as one of the City of Dallas’s most productive tools for generating affordable housing at relatively small annual cost to the city (the board statement cited an average city subsidy per unit of about $925/year and property tax exemptions of about $6 million per year). The board warned that the Housing Department recommendations—if adopted—would materially change the corporation’s operations and “essentially shut down” many DHFC activities unless the council provided a new pool of cash subsidies.

Next steps and hearing: The board noted the Housing & Homelessness Solutions Committee (HHSC) will consider the department’s recommendations April 22; DHFC leaders said they had an April 15 meeting scheduled with Housing Department leadership and the assistant city manager to discuss concerns but the assistant city manager told the board the committee had not allowed revisions before the April 22 hearing. Board members said they intend to communicate their concerns to council members and requested staff follow up with written comments and supporting data.