Council approves Dallas HFC purchase of Deep Ellum Oak & Ellum; critics say tax abatement is too generous
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Summary
The City Council authorized the Dallas Housing Finance Corporation to acquire the Oak & Ellum multifamily property in Deep Ellum and approved a long tax abatement. Supporters said the purchase adds affordable units quickly; opponents said the abatement removes millions from the tax rolls and favored different AMI levels.
The Dallas City Council voted to authorize the Dallas Housing Finance Corporation (DHFC) to acquire Oak & Ellum, an existing market‑rate multifamily property at 2627 Live Oak Street, and to provide the related long‑term tax abatement structure proposed by DHFC. DHFC and staff said converting existing market units into income‑restricted units will create affordable housing faster and at a lower cost per unit than new construction.
City staff and DHFC leaders described the financing and public‑benefit analysis used to underwrite the transaction. Housing staff said the acquisition would convert the property’s existing units to a mix of incomes; the project includes a tier of units targeted to 140% AMI for a portion of units, with others at lower AMI bands. Erin Quintel, general manager of Dallas HFC, told council the HFC’s public benefit analysis estimated a roughly 72–75% return on public dollars over the analysis window, due to rental savings, social services and other public benefits built into the transaction.
Opponents, including Council member Mendelson, pressed staff and HFC representatives about the effect on tax revenues. Housing director Cynthia Ellickson and city staff provided an estimate in the meeting that the property generated about $510,907 in city property taxes (and roughly $1.6 million across taxing jurisdictions) prior to the HFC acquisition; approving the deal would remove that revenue from the regular tax rolls. Staff said the Deep Ellum TIF would be made whole for taxes foregone for its remaining life via a separate item, but that payment had been stricken from the motion at counsel direction and would be returned for later consideration.
The council held a record vote. When the secretary called names, the roll showed 12 council members voting in favor and 2 opposed, with the mayor absent. The transcript records: “Mayor Johnson is absent with 12 voting in favor. 2 opposed, 1 absent. The item passes.” Council members who opposed cited the long abatement period and what they called too‑high AMI tiers for the units in exchange for the tax break; proponents argued the project is in a high‑cost submarket where this intervention preserves workforce housing and is less expensive than new construction.
The DHFC action will require additional implementation steps, including final acquisition documents and a separate council item to address TIF mitigation funding. The housing department said beneficiaries will be able to rent at reduced rates almost immediately after closing, rather than waiting years for new construction.
Speakers at the hearing included HFC staff and multiple council members. Concerns raised to staff during the meeting included: the total foregone taxes over 15 years (cited as roughly $30,000,001.37 across taxing entities for the 15‑year period noted by a council member during Q&A), the structure of AMI tiers, and whether the public‑benefit analysis uses the appropriate comparables.
Actions: The council approved the DHFC acquisition authorization and related HFC actions (record vote: 12 yes / 2 no / 1 absent).
