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​​Mixed Income Housing Development Bonus (MIHDB)

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About MIHDB:

The Mixed Income Housing Development Bonus Program (MIHDB) incentivizes mixed income multifamily and mixed-use development through various zoning bonuses.

Created in 2019 and amended in 2022, the MIHDB program trades additional development rights (such as height, floor area ratio, density, and reduced parking minimums) in multifamily and mixed-use developments for onsite affordable housing units or a fee in lieu of onsite provision.

These by-right bonuses are available in MF – Multifamily Districts and MU – Mixed Use Districts, specifically MF-1(A), MF-2(A), and MF-3(A) Multifamily Districts and MU-1, MU-2, and MU-3 Mixed Use Districts. Today, these districts represent approximately 15,000 acres across the city. The bonuses are also available by right in planned development districts that refer to Chapter 51A-4.1100, the section of the development code that regulates the MIHDB program.

In the MF and MU districts, the development bonus and number of reserved units required to attain that bonus vary by the location of the development under the City's Market Value Analysis (MVA) Categories. Properties in A, B, and C categories are required to serve families at lower income levels than properties in G, H, and I categories. The percent of reserved units is related to the amount of the bonus requested, and the income ranges depend on the MVA category. In planned development districts (PDs), the bonus and the reserved units vary by district.

In all eligible zoning districts, developers may choose to use the bonus and build the unit onsite or they may choose to pay a fee instead of onsite units.

The fee is determined by the residential floor area (as defined in Sec. 51A-2.102(38) of the Dallas Development Code) times a dollar amount determined by the MVA category and the number of stories in the development. The per square foot fee varies from $2.61 for a low-rise building in MVA Category G-I to $9.66 for a high-rise building in MVA Category A-C.

For example, a high rise in an MVA Category C with 300,000 square feet of residential floor area would pay 300,000 * $9.66 = $2,898,000 instead of providing the onsite units.

 

The fees are available here. Sec. 20A-23.1, which governs the fee in lieu process, is available here.  These fees are scheduled to update regularly, which may not be reflected in the code library immediately.  As of January 2023, the program participation fees have been updated as follows:

  • The pre-application meeting fee has increased to $1,390
  • The initial first year activities fee has decreased to $485
  • The compliance monitoring fee has increased to $11,082

The in-lieu fees are deposited into a dedicated MIHDB fund. To attend future discussions about how to use this local funding to support housing in Dallas, sign up for the Housing Policy Task Force emails and meetings, here.

 The Department of Housing & Neighborhood Revitalization presented an update of the mixed income housing incentives and the new fee in lieu option to the Housing and Homelessness Solutions (HHS) Committee on October 24, 2022. To learn more about the MIHDB program, please view the full HHS City Council Committee meeting on the Dallas City News Network.

An overview of the process is available here: 


Eligibility Requirements:

To get started, check the City's online zoning map to see if your development is in one of the eligible base zoning districts or a participating planned development district (PD). If your development is in a PD, you can look up the PD language HERE. 

If your development is in an eligible zoning district, contact Housing staff at 214-670-3644 to get started. 

If you are applying to change the zoning, contact the Current Planning staff for assistance. 


How to Apply:

Housing accepts MIHDB applications through the Neighborly platform.  The application is required by all developments seeking zoning bonuses through MIHDB and will include information about the owner, developer, proposed project, and requested bonuses.  Prior to beginning an application, please read the developer process document located HERE.


APPLY


Additional Information:

 A new developer guidebook is available HERE  Additional information on the process is also below.

  • Chapter 51A-4.1100 (and the May 11, 2022 amendments here) and Chapter 20A-II regulate the program. Please read through both portions of code carefully.
  • The MIHDB program uses the income limits published annually by HUD for the Dallas, TX HUD Metro Fair Market Rent Area, adjusted for family size. The program uses the 9% housing tax credit limits as the rent limits. 
  • Look up your property's MVA category HERE.
  • Zoning
    • The City's online zoning map is HERE. In addition, the Development Services Department offers an official zoning verification letter through the application available HERE.
    • Mixed used districts are HERE.
    • Multifamily districts are HERE. (Please note that the SAH district regulations are from an earlier program and are not part of the MIHDB program.)
    • Planned Development Districts are HERE.
  • The program has a set of required fees, available HERE. These fees increased in January 2023.
  • Developments participating in the MIHDB program must not discriminate against holders of housing vouchers. More information about how to become an approved landlord with DHA/Housing Solutions for North Texas, one of several entities that issue housing vouchers, is available HERE. DHA has streamlined, improved, and automated much of its processes in the past few years. It now uses artificial intelligence and virtual inspections to streamline the landlord registration process.


MIHDB Fund:

All program fees and fees in lieu of affordable housing are added to the MIHDB Fund and intended to be used to produce and preserve affordable housing, further equity, and to promote strong communities.

On February 23, 2023, Housing briefed the Housing Policy Taskforce on the research and recommendations on the uses and allocation of these funds.  A recording of the presentation is available below and a copy of the PowerPoint presentation is here.


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A poll was held after the presentation to determine the overall satisfaction with the recommendations presented on a scale of 1 to 5 with 5 being the most satisfied.  Twenty-four attendees responded to the poll, with an average rating of 3.3.  Detailed results follow:

  • 8.3% selected 1, or the least satisfied
  • 16.7% selected 2
  • 29.2% selected 3
  • 29.2% selected 4
  • 16.7% selected 5, or the most satisfied

A list of cities included in the research is available here, and more details on housing trust funds are available from Community Change here.

Housing presented recommendations to the Housing and Homelessness Solutions Committee on March 21, 2023.



Email MIHDB Staff     |     214-670-3644     |     www.dallascityhall.com/MIHDB


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