Oak Cliff Chamber Low-Income Housing Report

8/13/2019 Oak Cliff Chamber Low-Income Housing Report

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Low Income Housing:Patterns of Development for

North/South Dallas and Oak Cliff

A Report to theOak Cliff Chamber of Commerce

by


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Low Income Housing Patterns

- DHA/HUD 202-236/PSH Locations- SF housing sites; MF housing sites- Fairly even distrubution

- LIHTC Location Shift- Before 2000: Fairly even distribution of LIHTC in

North/South Dallas- After 2000: Concentration of housing in S. Dallas

- Oak Cliff Low Income Housing Zones- Concentrations w/ > 50% low income housing units


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- Location- South of Trinity River

- South of I-30

- North Characteristics- Higher levels of education, income, property values

- History as a growth corridor

- South Characteristics- Majority-minority population

- Lower levels of education, income, property values

- History of disinvestment

North/South Division


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Low Income Housing Programs(DHA, HUD 202/236, PSH)


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2,685

3,818

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

N. Dallas* S. Dallas**

DHA & HUD 202/236 Distribution

Source: City of Dallas, 2011. Dallas Housing Authority, 2011.

* North Dallas: All zip codes within City of Dallas limits with a centroid north of I-30.

** South Dallas: All zip codes within City of Dallas limits with a centroid south of I-30.


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456

516

0

50

100

150

200

250

300

350

400

450

500

550


PSH Capacity

Source: Metro Dallas Homeless Alliance, 2011.




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Dallas LIHTC Shift(1987 -2010)


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Source: U.S. Dept. of Housing and Urban Development, LIHTC database, 2011.



7,190

6,272

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000


1987-99 LIHTC Distribution

1987-99


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Source: U.S. Dept. of Housing and Urban Development, LIHTC database, 2011.

* North Dallas: All zip codes within City of Dallas limits with a centroid north of I-30 or Trinity River.

** South Dallas: All zip codes within City of Dallas limits with a centroid south of I-30 or Trinity River.

7,190

6,272

1,163

5914

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000


1987 - 2010 LIHTC North/South Shift

1987-99 2000-10


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Low Income Housing Zones


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tracts > %50low income

rentalhousing

Source: U.S. Dept. of Housing and Urban Development, LIHTC database, 2011; U.S. Census Bureau , 2011.


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rentalhousing

Source: U.S. Dept. of Housing and Urban Development, LIHTC database, 2011; U.S. Census Bureau , 2011.


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housing

(all renters &owners)


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LIHTC and LIH Zone Issues


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What are LIHTCs?

- A supply-side subsidy, through a dollarfor dollar reduction in tax liability, that

stimulates low-income housingdevelopment- LIHTC only

- 9% income tax credit, 10 years

- LIHTC + tax-exempt debt financing- 4% income tax credit, 10 years


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LIHTC Eligibility

- Residential rental property- Low income occupancy thresholds

- 20-50 Rule: 20 % units occupied withtenants whose income is less than 50% areamedian income

- 40-60 Rule: 40 % units occupied with

tenants whose income is less than 60% areamedian income

- Rent restrictions at least 30 years


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Community Issues

- Concentrating LIHTC units- Burden of development

- Many properties are 100% LIH units

- political, competitive process to get and maximizecredits within a community

- Limits opportunity- Access to better schools, jobs, business & community

services


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Reinvestment Issues

- Long-term capital financing dilution- Multiple funding sources

- Syndication: upfront equity for credits

- Debt financing & other programs- Raises cost, complexity, and risk

- Little incentive to support operating and futurecapital costs

- LIHTC rewards developers for initial capital costs- LIHTC designed to manage rent not cash flows


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Future Research

Documents

Oak Cliff Chamber Low-Income Housing Report