Dallas Expands Bonus Options for Developers of Mixed Income and Affordable Housing

May 16, 2022 | Insights

By Suzan Kedron & Victoria Morris

On Wednesday, May 11, 2022, the Dallas City Council approved three amendments to the Mixed Income Housing Development Bonus (MIHDB) program. These amendments include additional development bonus options, including certain development rights, parking reductions, and financial incentives. Most notably, developers who participate in the MIHDB program may now voluntarily contribute a fee into the MIHDB Fund, in lieu of having on-site affordable housing.

The fee-in-lieu option is of great benefit to developers whose projects cannot economically afford to provide on-site affordable housing units, but wish to provide funding to local affordable housing developments and initiatives. The fee is calculated using a square footage of floor area matrix based on the development’s height and location within the city’s Market Value Analysis (MVA).

For developers who elect to participate in the MIHDB program, the other code amendments included:

  1. Non-discrimination provisions to protect people using housing vouchers; and
  2. Requirements that ensure developments maintain vendor registration and report available units to local providers of housing vouchers.

A main point of contention during the May 11 City Council Meeting involved the parking reduction incentive, which reduced the MIHDB parking requirements from a minimum of 1.25 spaces per bedroom to 0.5 space per unit, depending on proximity to transit. In an effort to ease concern, there was a floor amendment that included a provision requiring review of the program’s parking incentives every two (2) years to ensure that the city’s parking needs are still being met.

For questions regarding the Mixed Income Housing Development Bonus program, please contact Suzan Kedron, Victoria Morris, or any member of Jackson Walker’s Land Use practice. Stay tuned for potential updates from Jackson Walker.

The opinions expressed in this article are those of the authors and do not necessarily reflect the views of the firm, its clients, or any of its or their respective affiliates. This article is for informational purposes only and does not constitute legal advice.