A local private investment fund dedicated to financing affordable housing in Dallas just got a $10 million boost.
Truist Financial Corp. has invested $10 million into the Dallas Housing Opportunity Fund LLC, according to LISC Fund Management LLC, a wholly owned subsidiary of Local Initiatives Support Corp.
With the news Wednesday, LFM explained the scope of Truist’s investment, which the fund’s leaders hope will act as a call to action for more investors.
“What we don’t want is a city comprised solely of high-priced condos and investment properties. We don’t want a city where teachers, policemen, restaurant workers and other service providers have to live in the next town over.” George Ashton, president of LFM said. “What we do want is mixed-income communities where families can live and play and be educated close to where they work, where economic opportunity is spread more equitably across the city, and the opportunity to succeed is based not on where you’re born, but on your discipline and desire.”
With the help of $6 million in seed money from the city of Dallas, LFM formed and manages the DHOF that’s designed to create more affordable units in high opportunity areas for households earning at or below 120% of the area median income, or AMI.
Ashton said the pursuit of building quality, affordable housing in Dallas isn’t only an altruistic mission, but also a key element in a healthy economy.
Local powerhouse industry group The Real Estate Council — and its certified community development financial institution called Community Investors — partnered with LFM to bring 158 units of rental housing in East Dallas, most of which are affordable to families with lower and moderate incomes, according to a news release.
Linda McMahon, president of The Real Estate Council, said that city funding for affordable housing hasn’t been enough to meet the growing demands of Dallas, creating the need for public and private partnerships like this.
“The city of Austin is getting ready to have a bond election,” McMahon said. “And they’re going to, over the course of 10 years, raise almost a billion dollars that they’re putting into housing. [Dallas] put $20 million in our last election. This has got to be a big thing that we’ve got to change.”
Dallas City Council member Chad West said money isn’t the only limitation to building affordable housing, lamenting the restrictive zoning policy and processes that have kept Dallas’ supply low.
“It is really hard to change the mindsets of folks on City Council because we got to change the mindsets of our constituents,” West said, “which is that this old zoning that’s in place that’s treating a major city like Dallas as suburban city just doesn’t work anymore, unless you want it to be one big Highland Park. That’s really where we’re going. And we’ve got to fix that.”
Truist becomes the second investor in the DHOF, following a $7.5 million investment by Sunflower Bank in October.
Bill Rogers, Truist chairman and CEO, said his company’s latest investment is aligned with its commitment to community investment and revitalization.
“Affordable housing is one of those public-private partnerships that really works in America,” Rogers said. “I think it’s an incredible opportunity that we’ve got in front of us.”
The DHOF invested $5.7 million last month to support the development of 71 units affordable to households making between 30% and 80% AMI. Jaipur Lofts in East Dallas, which will be a Low-Income Housing Tax Credit property, will be near a park, public transportation, a day care facility and medical center.
Developers also plan to break ground next week on another DHOF investment that will add 87 affordable rental units and a free, on-site Montessori-style day care facility, in partnership with the Bezos Academy.
Truist Financial, along with its foundation and charitable fund, announced in June its commitment of $120 million toward strengthening and supporting small businesses, with a focus on Black, Latinx and women-owned firms.
Truist’s national commitment included $10 million to LISC, which has partnered with the financial institution in the past.
