The City of Dallas has processed its first fee-in-lieu payment as part of their Mixed Income Housing Development Bonus (MIHDB) program. On May 11, 2022, Dallas City Council approved an amendment to the MIHDB program that allows developers to participate in the MIHDB program by contributing a fee into the MIHDB Fund in lieu of having on-site or phased development.

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The process for developments paying fee-in-lieu includes submission of an application to the City of Dallas Department of Housing and Neighborhood Revitalization prior to any predevelopment, Q-Team meetings, and submission of the construction permit application. Developers must provide the Housing Department with an estimation of the square footage and number of stories to be used to calculate the projected fee.

Once the final floor area is determined, developers receive an invoice for the fee-in-lieu and instructions for paying the fee via wire transfer. Beginning January 2023, the fees will increase yearly by a percentage equal to the percentage change in the consumer price index for housing in the Dallas/Fort Worth area.

Dallas City Hall has also provided a new developer guidebook here and a document explaining the MIHDB Developer Application Process. Stay tuned for potential updates from Jackson Walker.