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City council engaged in a lengthy debate during the Tuesday, July 15, study session over the fate of 22 city-owned residential lots, with members ultimately leaning toward transferring all parcels to affordable housing developer Builders of Hope despite concerns about fiscal responsibility.
The discussion centers on properties acquired through the city's Neighborhood Renaissance Program, established in 1999 to purchase deteriorating homes, demolish them and sell the cleared lots to encourage new residential development. The program has cost taxpayers approximately $14.2 million since inception, with the city recovering only about $8 million through previous sales.
"We're $6 million into this at this point," acknowledged Mayor Terry Lynne, highlighting the program's significant financial impact on city coffers.
The lots, scattered primarily throughout the Valwood Park and Branch Crossing neighborhoods, represent the culmination of years of strategic property acquisition aimed at neighborhood revitalization. Gold stars on a city map showed the remaining parcels, while green flags marked five homes already completed by Builders of Hope in recent years.
Councilmember Omar Roman, who requested the agenda item, strongly advocated for transferring all lots to Builders of Hope, emphasizing the organization's residential security focus and proven track record in the community.
"I think we found opportunities to improve those builds utilizing resident feedback at the forefront of the decision-making process," Roman said, referencing the completed Builders of Hope projects. "When I walked into the one in Dallas, it was like this is Farmers Branch. This is exactly what would fit in."
Roman expressed particular concern about maintaining neighborhood character and preventing longtime residents from being priced out through property tax increases driven by incompatible new construction.
"My prerogative as I sit here on the city council is to improve the quality of life of the people that I represent," Roman said. "Their quality of life is going to be diminished every tax dollar that's going to be increased because of an unnatural insemination of new housing into an area."
Councilmember David Reid pushed for a more market-oriented approach, proposing to reserve 10 lots for Builders of Hope while placing the remaining 9-12 parcels on the open market.
"We're not in the real estate business, and I think that's something that we're providing a service for some of the lots, but maintaining this many lots and moving down that road is something outside the overall purview of what the city should be doing," Reid said.
Reid also noted the approximately $100,000 per-lot cost to taxpayers, calculating the total subsidy at roughly $2 million if all lots transfer to Builders of Hope at below-market rates.
"As a steward of the city's money, that's something that I've been wrestling with," Reid said, while acknowledging the importance of providing attainable housing and maintaining community integrity.
The debate revealed tension between different council districts' needs. Councilmember Tina Bennett-Burton supported Builders of Hope for District 1 properties but favored open market sales for three lots on Heartside, arguing that the area "has already started redevelopment" with substantial new builds.
Councilmember Elizabeth Villafranca strongly endorsed the affordable housing approach. "I think this is a wonderful opportunity for us to have affordable housing in our city,” said Villafranca. “I am all in favor of Builders of Hope taking on this project.”
Adding complexity to the decision, the city simultaneously operates a Dallas County Housing Replacement Program, allowing current homeowners to relocate to city-owned lots while the city acquires their original properties. However, staff reported that most participants prefer staying in their current homes rather than relocating.
Chris Lewis from Builders of Hope attended the study session, explaining the organization's tiered pricing structure based on appraised values and desired affordability outcomes. "We can define what attainable is and based on the sales value of what the lot could be sold for," Lewis told the council.
Previous attempts to sell lots on the open market with size restrictions to maintain neighborhood character proved unsuccessful, with one Avenel property receiving no interested buyers due to the limitations.
By meeting's end, most council members had settled on giving all the lots to Builders of Hope, with the caveat that construction would be limited to 10 homes at a time to prevent flooding the local housing market.
The decision appears to signal the city's broader approach to housing policy and neighborhood development. Staff indicated plans for a future comprehensive housing strategy workshop to establish unified policies across the city's various housing programs, including demo-rebuild initiatives and zoning overlays.
"Part of this discussion is not only where we're at today, but also recognizing that we need to put all these together from a policy framework perspective," said City Manager Ben Williamson during the presentation.
The council will receive detailed financial analysis and contract terms before making a final decision on the lots' future.
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