Low Income Housing:

Patterns of Development for North/South Dallas and Oak Cliff

A Report to the Oak Cliff Chamber of Commerce by

Low Income Housing Patterns

- DHA/HUD 202-236/PSH Locations
SF housing sites; MF housing sites Fairly even distrubution Before 2000: Fairly even distribution of LIHTC in North/South Dallas After 2000: Concentration of housing in S. Dallas Concentrations w/ > 50% low income housing units

- LIHTC Location Shift

- Oak Cliff Low Income Housing Zones

North/South Division
- Location
South of Trinity River South of I-30 Higher levels of education, income, property values History as a growth corridor Majority-minority population Lower levels of education, income, property values History of disinvestment

- North Characteristics

- South Characteristics

Low Income Housing Programs

(DHA, HUD 202/236, PSH)

DHA & HUD 202/236 Distribution

4,000 3,500 3,000 2,685 2,500 2,000 1,500 1,000 500 0 N. Dallas* S. Dallas** 3,818

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.

PSH Capacity
550 500 456 450 400 350 300 250 200 150 100 50 0 N. Dallas*

516

S. Dallas**

Source: Metro Dallas Homeless Alliance, 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.

Dallas LIHTC Shift (1987 -2010)

1987-99 LIHTC Distribution

7,190 7,000 6,272 6,000

5,000

4,000

3,000

2,000

1,000

0 N. Dallas* 1987-99

S. Dallas**

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

1987 - 2010 LIHTC North/South Shift

8,000 7,190 7,000 6,272 6,000 5,000 4,000 3,000 2,000 1,163 1,000 0 N. Dallas* 1987-99 2000-10 S. Dallas** 5914

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.

Low Income Housing Zones

tracts > %50 low income rental housing

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

tracts > %50 low income rental housing

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

tracts > %50 low income housing (all renters & owners)

LIHTC and LIH Zone Issues

What are LIHTCs?

- A supply-side subsidy, through a dollar for dollar reduction in tax liability, that stimulates low-income housing development
- LIHTC only
9% income tax credit, 10 years 4% income tax credit, 10 years

- LIHTC + tax-exempt debt financing

LIHTC Eligibility
- Residential rental property - Low income occupancy thresholds
- 20-50 Rule: 20 % units occupied with tenants whose income is less than 50% area median income - 40-60 Rule: 40 % units occupied with tenants whose income is less than 60% area median income

- Rent restrictions at least 30 years

Community Issues
- Concentrating LIHTC units
- Burden of development
Many properties are 100% LIH units political, competitive process to get and maximize credits within a community Access to better schools, jobs, business & community services

- Limits opportunity
-

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 future capital costs

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

Future Research