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After a long and heated public debate, city council voted 3-2 Tuesday, August 19 to sell most of its inventory of city-owned lots to a nonprofit developer at discounted prices, despite opposition from residents concerned about the multi-million-dollar cost to taxpayers.
The council approved Resolution 2025-153, authorizing the sale of up to 20 of 22 city-owned lots to Builders of Hope Community Development Corporation for between $45,000 and $65,000 each, a fraction of their estimated market value of $175,000 to $250,000 per lot. The homes built on these lots will be sold to qualified buyers for $330,000 to $380,000.
The decision represents the culmination of a years-long effort to address affordable housing needs while extracting the city from what several council members called an unwanted role as a real estate developer.
"The only way to get out of the real estate business is through this program," said Council member Tina Bennett-Burton, defending the decision. "The developers have said they don't want to build in District 1. All the developers in our city have said that."
The proposal drew criticism from residents who calculated the financial impact on taxpayers. David Prince, who lives on Midway Road, questioned the nonprofit's financial capacity and transparency during public comment.
"Does [Builders of Hope] currently have the $3.3 million in their checking account to buy this property from the city?" Prince asked. "Nonprofits should depend upon raising funds from the hearts of donors, not off the backs of taxpayers."
Todd Warren, a resident of Juniper Cove, made his own calculations, determining that funding the estimated $2.5 million subsidy would require property taxes from 1,332 households paying $1,876 annually.
"This is a want, not a need. It doesn't help everybody in the city or all the five districts in the city," Warren said. "Once again, here we are spending money like it's y'alls. It's all the taxpayers' money."
Tammy Skaife, who works in human resources, criticized what she saw as poor financial stewardship. "To me, even in human resources, my own budget, a 50% loss doesn't make sense, especially when it's not your money to spend," Skaife said, referring to the difference between the city's $4.4 million investment in the lots and the proposed sale price.
The opposition was balanced by testimonials from residents who benefited from earlier Builders of Hope projects. Jose Sanchez, credited the program with enabling his homeownership after years of renting.
"I've been living here for over 25 years. My parents also live here and I also pay taxes," Sanchez said. "Thanks to Builders of Hope and the affordable price that they gave, I was able to buy the home that I always wanted and start a family. I think without them, I wouldn't be able to buy a house."
Daniel Serta, a 25-year Farmers Branch resident, echoed similar sentiments: "We're very grateful that Builders of Hope was able to give us a chance to be homeowners. With the current housing market, we would have been priced [out of] staying in the city."
James Armstrong, president and CEO of Builders of Hope CDC, defended his organization's track record and financial model during public comment. "We are supported by foundations like the Billingsley Foundation, the Muse Foundation, like the Dallas Foundation, the Communities Foundation of Texas," Armstrong said. "Only 20% of our revenue comes from government subsidies."
The council debate revealed divisions about the role of municipal government in housing policy. Council member David Reid raised concerns about long-term financial returns, calculating it would take 63 years to recoup the $3.4 million loss through property taxes on the new homes.
"As a council person, I'm a steward for the fiscal well-being of the city, not just a district," Reid said. "That's 35,000 residents that I'm responsible for and not just 20 families."
Reid also argued the discounted sales would depress surrounding property values. "If there were homes in the area that were recently sold, brand new homes, recently built, sold for $350,000, how is that going to impact or how you going to value the neighbor's home that is same size on the same size lot, is 30 years older, and in good chances disrepair."
Council member Omar Roman, who represents the district where most lots are located, provided extensive background on his research into the issue, citing peer-reviewed studies on gentrification and community development.
"I have read peer-reviewed scholarly research on community development. I have gone all the way back to the 1950s to learn about the inception of gentrification," Roman said. "There is no other city, no other country, and no other state out there that has a program quite like this one."
Roman argued the alternative, selling to the open market, would lead to "McMansions" that would price out existing residents through increased property taxes. He pointed to Branch Crossing, located behind City Hall, as an example where million-dollar homes now sit alongside older, smaller houses.
"That is not something that I, as an elected representative for District 1, who represents an area much similar to the original creation of Branch Crossing, will support," Roman said.
The lots stem from the city's Neighborhood Renaissance Program, created in 1999 to purchase distressed properties, demolish structures, and resell land for redevelopment. The program was funded by a $4 million bond approved by voters in 2017. City staff member Jose Garibay explained the program had evolved from its original focus on Branch Crossing and Valwood Park, noting the city had previously sold five lots to Builders of Hope between 2019 and 2023.
Some residents questioned whether the city had explored all alternatives. Terry Anderson argued that "the city is not a charitable entity" and suggested that "Builders of Hope needs to rethink its mission and work with market reality."
John Vickers, who has an appraisal background, warned that comparable sales of new construction at below-market prices would "devalue these houses in this neighborhood."
Council member Elizabeth Villafranca emphasized the program's broader goals beyond the immediate families served. "This is not DEI. This is not section 8. This is not a Hispanic program," Villafranca said. "We want to be able to allow service people, single parents, first responders, teachers, professionals, paraprofessionals to live in the city that they work."
However, the council discovered during debate that city employees and first responders cannot participate in the program due to charter restrictions preventing city employees from having financial interests in city contracts.
Council member Roger Neal expressed reservations about the return on investment, noting that while Builders of Hope builds quality homes, he questioned whether the earlier five-home pilot had achieved its intended goal of spurring neighborhood revitalization.
"I don't know as I sit here, I don't know that I would be a good steward of the tax dollars by submitting the two to four million worth of tax money towards this program," Neal said.
The final vote included an amendment by Roman to sell 2-3 lots on the open market rather than all to Builders of Hope, representing a compromise that acknowledged fiscal concerns while preserving the affordable housing initiative.
Villafranca concluded the debate with an appeal to the council's mission, "We have one chance to get this right. And I know in my heart that we are doing the right thing. We need to get out of the real estate business."
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