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City officials are exploring an expanded partnership with Builders of Hope, a nonprofit organization, to create affordable housing on city-owned land after a presentation during an April 29 special council meeting.
The initiative, called "The Porches at Valwood Park," has already completed its first phase with five homes built or under contract. Builders of Hope representatives Chris Lewis and James Armstrong presented results from Phase 1 and outlined plans for Phase 2.
"Builders of Hope has been around for about 25 years, a nationally recognized community development corporation, focusing on building workforce housing and policy that protects single family neighborhoods," said Armstrong, who serves as president and CEO.
The organization's mission in Farmers Branch includes providing quality workforce housing, revitalizing the Valwood Park neighborhood and creating a partnership with the city as a nonprofit builder.
Phase 1 included homes on Greenhurst, Wasina, Squire and Wicker streets. According to Lewis, these homes have been sold to buyers with strong ties to the neighborhood, including a special education teacher, an auto mechanic and a married couple who volunteers with Farmers Branch schools.
"These buyers would not be able to become homeowners, but for this program," Lewis said. "The median salary needed to become a homeowner in the DFW area is over $100,000. These buyers' household income was between $60 and $80,000."
For Phase 2, Builders of Hope leaders proposed establishing a blue ribbon committee with community stakeholders, implementing a tiered land acquisition approach to create lower entry price points and adding deed restrictions with resale and recapture provisions.
"You are helping to make our community better,” said Mayor Terry Lynne of the initiative. “Our city is going through a growing pain. We've got what I call housing disparity."
The initial price point of $320,000 was considered too high by some community members. For Phase 2, proposed homes would range from $260,000 to $360,000, with lower land costs for the more affordable units.
Councilmember David Reid questioned how homebuyers would manage increasing property taxes. Armstrong explained the program includes financial coaching and assistance filing homestead exemptions.
"It's all about not just getting people in the home, but how do we make sure that they are secured when they get into the home?" Armstrong said. "Our foreclosure rate for our program out of our 25-year history, we've built over 550 homes, is less than one percent."
A key proposed change for Phase 2 is a 10-year affordability period with resale restrictions requiring homes to be sold to qualified buyers under specific income limits and a recapture provision if these requirements aren't met.
The city currently owns 22 residential parcels, 20 in the Valwood Park area and two in Pepper Hill, just west of Pepper Park along Nestle Drive north of Valley View Lane, and is considering dedicating more lots to the program. The proposed economic impact includes $1 million in land sale revenue and $5.8 million in taxable real estate value.
Councilmembers requested additional information, including a map of available lots and an update on the Dallas County housing replacement program before making a final decision on expanding the partnership.
City staff will prepare supplementary documentation for the council's consideration at a future meeting.
