Housing Fund Dallas presents affordable projects in the city

When a small group of elected city officials and community members toured an East Dallas apartment complex Thursday, they stepped into the only vacant unit on the lot.

The two-bedroom apartment at Kiva East — funded in part by the Dallas Housing Opportunity Fund, a community-led initiative that raises a mix of private and municipal funds — is like many in Dallas since the affordable housing development opened its doors in November.

But of the complex’s 87 units, 71 are reserved for renters earning 60% or less of the area median income — or about $63,000 a year.

Parents who live in Kiva East also receive a valuable perk: free child care for children before age K. Bezos Academy’s Old East Dallas location is accepting applications for 3- and 4-year-olds for the fall semester.

The door of the Bezos Academy at the Kiva East apartment complex on Thursday, April 25, 2024 in East Dallas. The City of Dallas provided $6 million in seed funding to DHOF and its management entity Local Initiatives Support Corporation (LISC) in 2022 to support the development of affordable housing in Dallas. (Juan Figueroa / Staff Photographer)

Dallas City Council member Jesse Moreno, who lives nearby, said the location is a perfect fit for the East Dallas community, with easy access to public transportation and the Santa Fe Trail.

“My wife and I have a six-year-old daughter, so we understand that many of our households are struggling with costs, and that means they are barely making ends meet to pay the rent,” Moreno says. “Dallas has a 97% occupancy rate in apartments, so every unit that comes online means we can accommodate another family in an apartment.”

Since its launch, the Dallas Housing Opportunity Fund has raised nearly $30 million, including $7.5 million from Sunflower Bank and $10 million from Truist Bank, and is on track to open more than 400 affordable housing units for renters in the region.

In January 2022, the City of Dallas entered into an agreement with the fund’s manager – Local Incentives Support Corporation Fund, or LISC Fund Management, LLC – to raise at least $40 million from private donors for affordable housing projects by the end of 2026.

The city of Dallas has committed $6 million to the fund to launch its efforts to create or preserve at least 1,500 homes affordable to households earning 120% or less of the area median income by the end of 2031.

With help from the community investing arm of local industry group The Real Estate Council, the housing fund focuses on preserving existing homes and creating new mixed-income developments in “high opportunity” neighborhoods that are close to good-paying jobs and good schools. and transportation.

Michelle Spivak, director of business development for LISC Strategic Investments, speaks during a Dallas Housing Opportunity Fund (DHOF) affordable housing showcase event at the Kiva East apartment complex on Thursday, April 25, 2024, in East Dallas. The City of Dallas provided $6 million in seed funding to DHOF and its management entity Local Initiatives Support Corporation (LISC) in 2022 to support the development of affordable housing in Dallas. (Juan Figueroa / Staff Photographer)

A key feature of the fund is creating more inclusive mixed-income communities by connecting affordable housing to high-opportunity areas to support a growing workforce, said Michelle Spivak, director of business development for LISC Strategic Investments, which manages the housing fund .

“If you build on the edge of town, near the gas station and the food desert, with no schools and no public transportation, you don’t want to live there,” Spivak said. “How can you expect anyone else to live there, lead a successful life and have well-educated children?”

Rep. John Bryant, D-Dallas, lives about a mile from the Kiva East apartments. He spoke to the group Thursday about the need to support policy solutions at the state level that encourage more affordable housing development.

“Texas ranks 44th in the nation in promoting affordable housing, which means we are at the bottom among major states,” Bryant said. “We have 30 million people. We are, in fact, a nation state. We are the ninth largest economy in the world. There is no reason why we should come last in housing construction.”

Bryant cited data from the National Low Income Housing Coalition’s The Gap report, an annual snapshot of the supply of affordable housing across the country. Texas has 25 affordable housing units per 100 extremely low-income renter households, one of the lowest in the nation and just above Florida, Arizona, California and Nevada, according to the 2024 report.

Bryant also added that keeping customers economically burdened with housing costs is bad for business. He said he wants Texas lawmakers to go a step further and release more than the $13 million in affordable housing the state receives from its $300 billion-plus biennial budget.

In addition to the East Dallas complex, LISC staff gave tours to residents and officials, including Dallas City Council members Kathy Stewart, Zarin Gracey and Jaynie Schultz, who visited two complexes in Oak Lawn developed in part by the strategic fund.

Oak Lawn Place, which gives priority to LGBTQ tenants who are 55 or older, will add 84 units affordable at or below 60% of the area median income.

Of Rawlins Chateau’s 54 affordable units, 22 apartments are reserved for people with disabilities who have experienced chronic homelessness. There is also a Metrocare behavioral health unit on site for direct access to families. Metrocare supports mental health, developmental, and substance use disorder care in North Texas.