Committee reviews Braniff Lofts supportive-housing NOFA request; developer seeks $7 million ARPA gap loan

Dallas housing staff briefed the Housing and Homelessness Solutions Committee March 24 on a NOFA-funded supportive-housing proposal, Braniff Lofts, a 48-unit project proposed by Sycamore Strategies with AIDS Services of Dallas as the services partner. Staff said the project seeks $7,000,000 in gap financing to be provided from the ARPA redevelopment fund and asked the committee for support to forward the financing contract to council.

Why it matters: Braniff Lofts targets permanent supportive housing for individuals and families affected by HIV/AIDS and would add 48 subsidized units in a downtown-adjacent location. Staff said the NOFA and underwriting follow TDHCA guidance and federal affordability rules; the city's gap request is intended to complete the project's finance stack.

Darwin Wade, assistant housing director, presented the item to the committee and said staff supports the project. Developers and co-developers attended the meeting and responded to committee questions about financing and vouchers. Zachary (developer representative) explained why the team is targeting TDHCA financing and historic tax credits and described the constraints around committing project-based HOPWA vouchers before construction: "Because of how TDHCA underwrites certain things, going into an application with vouchers already designated for a property changes the way underwriting works... having permanent supportive housing vouchers already committed to a building like this would be detrimental to the financing."

Committee members asked about voucher availability and tenant eligibility. Councilmember Middleton asked whether HOPWA vouchers are already secured; staff said candidates are expected to have vouchers when they enter permanent supportive housing but that project-based HOPWA allocations had not been committed because of underwriting and Davis-Bacon wage triggers. Staff said AIDS Services of Dallas has an active client base and could assist with tenant referrals and service delivery.

Funding and timeline: staff said the $7,000,000 request would come from the ARPA redevelopment fund allocated in prior council action; housing staff indicated the loan would be a forgivable gap loan under the city's Dallas Housing Resource Catalog for permanent supportive housing. Developers said they expect to close on the property by June.

Committee discussion also addressed underwriting and contingency assumptions, voucher coordination with Dallas Housing Authority, and monitoring of resident services. Staff said TDHCA and the housing department will monitor affordability and services under project documents and LURA terms.

Outcome: staff requested the committee's support to move the financing recommendation forward to full council for approval. No formal committee vote on a contract appeared in the transcript; staff asked for the committee's endorsement to proceed to council consideration.