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​​Mixed Income Housing Development Bonus (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 $2.38 for a low-rise building in MVA Category G-I to $8.82 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 * $8.82 = $2,646,000 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. 

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 here, and a copy of the PowerPoint presentation is here.

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 will present recommendations to the Housing and Homelessness Services Committee on March 21, 2023.