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:
- Non-discrimination provisions to protect people using housing vouchers; and
- 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.
