22 March 2010

Dallas Housing Stimulus Effort Slow to Spend $25 Million

Dallas News
North Texas received more than $25 million in federal stimulus funds last fall to move homeless people into Dallas and Fort Worth apartments and prevent others from losing their homes because of the tough economy.


But so far, only a fraction of the Homelessness Prevention and Rapid Re-Housing Program money – about $2 million – has been spent, according to the U.S. Department of Housing and Urban Development, which oversees the program. The amount may be slightly higher because of a lag time for reporting the expenditures to the federal government.

The program was designed to provide temporary relief to people who need help with rent or utilities because of circumstances such as job losses or medical crises.

Things are off to a slow start.

Many applicants have been waiting for weeks just to get an appointment to apply for the help. And some agencies distributing the assistance say they have been overwhelmed with requests and do not have enough staff to keep up with the demand and extensive documentation.

In Dallas, where applicants have complained about long waits, the city is evaluating whether more staffing is needed.

Three charities withdrew from the program because they said they did not have adequate staff to carry out its requirements, said Bernadette Mitchell, assistant director of the city of Dallas' housing and community services. She said others are reporting problems with the online system they're supposed to use to enter client data.

"The city of Dallas is very concerned and we are evaluating the need for more staff persons to address this particular issue," she said in an e-mail. She said the city has contacted agencies that applicants have complained about for not responding to phone calls.

"The volume of people trying to access the service is overwhelming the system," she said. "Only a certain number of people can be fully interviewed for assistance and provided other needed referrals per day."

Other officials worry that many of those eligible – especially those who have never used social services before – don't even know about the assistance, which has mainly been publicized by fliers, posters and word of mouth.

"There's a lot of money in Dallas that people don't know they could access," said Paige Flink, executive director of The Family Place, which helps family violence victims. She said The Family Place received $1.3 million in stimulus funds and has distributed more than $150,000.

The meeting

A Feb. 16 meeting highlighted the lack of awareness about the program.

Only four people attended the public meeting at Dallas City Hall to learn how to apply for the funds. All were homeless and had seen fliers or heard about the event from a friend.

But they learned that the help would not come fast: They were told it would take up to a month just to get an appointment to apply for the aid, and as many as four months to move into an apartment.

London Brooks, one of the attendees, left frustrated. He said he was in a hurry to get out of a shelter after sleeping on the floor because there weren't enough cots.

"I'm trying to get out of that place as quick and fast as I can," said Brooks, whose unemployment benefits recently ran out.

Brooks called several agencies before finally getting an appointment with the Urban League of Greater Dallas' office in Garland last week. He said he was told that he could not qualify for the assistance without some type of income. Brooks, who attends school to train for an electronics career, said he's looking for a job so he can qualify.

Shirley Walker, the Urban League's senior vice president for community services, said the program aims to make sure recipients can sustain themselves after the temporary help runs out.

"Otherwise, what have we done for him?" Walker said. "We've caused him to fail and we've also put a blemish on his credit and he won't be able to get housing once he does meet those other requirements. It's like a double-whammy."

Walker said her agency is short-staffed.

"I want to assure you, I know all of the people in this community care and are trying the best they possibly can with the constraints they have," she said. "If our clients just give us a chance, we'll work to the best of our ability to serve them."

Yvette Jackson, another person at the City Hall meeting, also said she wants to move out of a Dallas shelter as soon as possible. More than a week after the meeting, Jackson still had no appointment. She said the agencies on a list did not call her back or did not allow her to leave a message.

"Living in a shelter is something I'm not used to," said Jackson, who came to Dallas 10 months ago after losing her job.

She eventually found housing through another program not tied to the stimulus money.

'As expeditiously as possible'

The American Recovery and Reinvestment Act of 2009 provided $1.5 billion nationwide. The program can pay rent and utilities, but not mortgages, for people who meet very specific criteria.

HUD announced the rapid rehousing program in February 2009, but people could not apply for the aid in many local cities until late last year or January.

During that time, the federal government entered contracts with state and local governmental agencies and provided training so they could distribute the funds in North Texas. Some of those agencies solicited nonprofits, like The Family Place or the Urban League, to help disburse the funds, which go directly to landlords or utility companies.

Agencies found the process was not as simple as handing out money.

They need extensive documentation – such as financial records and Social Security cards – that some applicants have had trouble getting together. They also need to make sure the Texas apartments people rent charge fair market rents, have been inspected and accept the federal payments. Some clients have been rejected because of bad credit records or felonies.

The city of Dallas received nearly $8 million, which it is sharing with several nonprofits. So far, about $333,000 of that has been spent, according to HUD. But the actual amount is at least $100,000 higher because of a lag time from when the city submits expenses to HUD for reimbursement, Mitchell said.

Governmental agencies and charities have three years to spend the funds, said HUD spokeswoman Patricia Campbell. She said that Dallas officials initially faced delays executing contracts with charities but that they expect a dramatic increase in the money given out now.

"We certainly are encouraging all grantees to spend the money as expeditiously as possible," she said.

Despite possible hurdles, the money is helping many families keep a roof over their heads.

In Plano, officials have distributed more than $35,000 since Jan. 1, according to HUD. The city received $509,050.

Garland, which received $304,952, has helped at least eight families and sent 20 more to search for North Texas apartments, said Tiffinay Slade-McClinton of the city's housing agency. So far, the city has spent $3,467, according to HUD.

Chelsea White, development director of the Housing Crisis Center in Dallas, said her agency has $184,877 to distribute – and is seeing a lot of people at the brink.

"There are households that, without this money, would probably be homeless," she said.
AT A GLANCE: HOUSING HELP

Across North Texas, agencies received more than $25 million through the federal stimulus package to move homeless people into Dallas apartments and prevent others from losing their homes because of the economic downturn.

The Homelessness Prevention and Rapid Re-Housing Program is designed for people who only need temporary assistance to get back on their feet. It is not for the chronically homeless, who have disabilities and need long-term help.

The money can only be used for people who:

•Are homeless or would become homeless without the assistance.

•Have no other housing options and lack resources to obtain or remain in housing.

•Earn less than 50 percent of the area's median income of $23,650 for an individual or $33,800 for a family of four.

Applicants can call 2-1-1, a help line for social services, to be directed to the nearest agencies that offer the assistance. Applicants must have a consultation at the agency to determine the appropriate level of assistance. Documentation will be required to verify income and housing status.

16 March 2010

UTEP to Develop Mesa Property

El Paso Inc.

What happened to the Whole Foods deal?



For years, the city has been hoping for a developer to build a transit-friendly, high-density mixed-use neighborhood, but it has yet to happen.

The University of Texas at El Paso might be first to make that a hope a reality.

The university has a number of proposals from developers for the former Rudolph auto dealership. The almost eight-acre site is next to the Don Haskins Center and has frontage on both North Mesa Street and Sun Bowl Drive.

According to the university’s request for proposals, the development should include “large and small retail uses complementary to the University, multi-family housing as a part of the retail complex, and structured parking to serve the retail and residential uses.”

UTEP would maintain ownership of the land through a ground lease, similar to the deal it made with the developers of the Hilton Garden Inn, located a few blocks away at University and Oregon.

It won’t happen immediately. UTEP has requested proposals previously, and about three years ago almost had a deal with food retailer Whole Foods.

The deal fell through when the recession squeezed the life out of negotiations, said Cindy Villa, UTEP vice president for business affairs.

“We certainly were disappointed. It would have been a very good tenant for that area and would have fit with our vision of how to develop that area,” she said.

UTEP officials are hoping this turn of the wheel brings such a deal to conclusion, but the university can afford to wait.

“We’ll take the time to try to do this right and ensure we have the best possible options available to the university,” she said. “What the RFP does is give you the opportunity to view the proposals from various developers and then negotiate from there, so it can be a fairly lengthy process.”

The university was scheduling presentations from the bidders. Villa declined to say how many bidders made proposals or who they were, citing the need for confidentiality during the bidding and negotiating periods.

Negotiating points include the length, cost and other terms of the ground lease, and the possibilities for development are fairly wide open, Villa said.

“We may not get into whether Texas apartments have granite countertops but we want to have control or say over the nature of businesses on the site,” she said. “The other thing we definitely want control over is design. We would envision having it in the style of the university architecture.”

UTEP’s trademark building style is based on the ancient architecture of Bhutan.

The Rudolph site makes sense for mixed-use development for several reasons: Its location next to the Don Haskins Center draws crowds for evening and weekend events, and during the day, UTEP is a major employment center with the population of a small city.

The site is within walking distance of the medical cluster that includes Sierra Providence and Las Palmas hospitals, also major employment centers, and the Cincinnati Street nightclub and restaurant district.

The lot is flat, clear land along a major arterial, Mesa Street, which means it has plenty of traffic. According to the request for proposal, which uses 2002 figures, 32,646 cars per day pass the location.

Also, the city is working with UTEP on the Glory Road Transit Terminal, which will connect a high-speed bus line from Downtown to the university district.

Taking an even broader view, the site is less than two miles from Downtown to the south and the large-scale Montecillo proposed high-density mixed-use developments to the north.

“If there was a site for mixed use development, this is it,” said Mathew McElroy, the city’s deputy director for planning. “There’s ridiculous density in that area because of the hospitals and UTEP. You could have nurses walk or take the bus. People who work Downtown probably wouldn’t even need to own a car because they can walk to the Glory Road station.”

But despite all the promise, the fact is that such a development model doesn’t exist in El Paso.

“It’s hard to do those types of developments when you don’t have an area that can support it. This is the one area of El Paso that can,” said Bob Ayoub, president of Mimco, a real estate development company that made a proposal previously.

“We’d be interested in pursuing it again. It’s a great site. UTEP needs more housing and I think it’s great they’re finally getting going on it,” Ayoub said. “That piece of dirt needs to be developed.”

City Rep. Beto O’Rourke, who represents the area and has been a leading proponent for this kind of development, said the RFP had potential.

“I hope that UTEP and the developer they choose do something truly innovative here because the past history of development along Mesa is really uninspired. I think our community deserves a lot better,” he said. “I’m optimistic UTEP will be able to do that.”

10 March 2010

Missed Payment Rate Jumps on Dallas-Area Commercial Property

The Dallas News


An increasing number of Dallas-area commercial properties are falling behind in their mortgage payments.

At the end of last month, the missed payment rate for Dallas-area buildings with securitized mortgages was more than 33 percent higher than the national average, according to a new report by Trepp LLC.

The New York-based analyst tracks thousands of commercial properties across the country that are financed with securitized mortgages.

More than 9 percent of Dallas-area commercial properties with securitized debt were behind in payments at the end of February, according to Trepp's report, released Wednesday. The national delinquency rate was 6.72 percent.

The Dallas-area late loan rate has increased almost 200 percent from a year ago, said Paul Mancuso, vice president of Trepp, which provides real estate data and analytics.

"Although elevated, the [Dallas] region is well below the double-digit delinquency rates experienced in troubled states such as Arizona, Nevada, Florida and Michigan," he said.

Almost 160 Dallas-area commercial and investment properties are on the list of troubled real estate deals. The debt on these properties adds up to about $1.28 billion.

Among the largest real estate deals cited in the report is the Four Seasons Resort and Club in Las Colinas, which has been posted for foreclosure.

"Excluding the delinquent $175 million loan to the Four Seasons Resort and Club, the current delinquency rate would decrease significantly to 7.9 percent," Mancuso said.

Downtown Dallas' Harwood Center office tower and the Village on the Parkway shopping center in Addison are also on Trepp's watch list.

The Dallas apartments sector with the highest mortgage delinquency rate is hotels. Almost 17 percent of securitized hotel loans here were behind in payments at the end of February. The office building delinquency rate was just over 12 percent.

Loan data from properties with securitized debt provides an important window into the health of the commercial real estate sector.

Trepp said the nationwide increase in late loans in February was 23 basis points,. It was the smallest increase in six months, but late loans are still at an all-time high.

In 2009, the number of commercial properties posted for foreclosure such as Dallas-Fort Worth  apartments area jumped almost 27 percent.

03 March 2010

City Incentives Spurring El Paso Apartments

El Paso Inc.


Incentives designed to stimulate the construction of apartments in El Paso are working, city officials say.

Almost 2,000 units have been put under contract since the incentives were approved by City Council less than a year ago, according to Kathy Dodson, the city’s director of economic development.

“I am thrilled about the results we are having,” she said. The program was created to provide off-post housing for the influx of soldiers coming to Fort Bliss.

One project taking advantage of the incentive program is The Bungalows, a 431-unit complex on the Eastside that’s being built by Bohannon Development.

Tom Bohannon, the company’s president, said units in the first phase will be ready to rent as early as next month. The rest should be finished by September 2011, he says.

But even with incentives, Bohannon says it’s still not the level of return on investment that would normally attract outside companies.

In the slow economy, builders are finding it hard to secure financing, while the cost of construction is high.

“You really need to want to build in El Paso, because it is very difficult to make the numbers work,” Bohannon said. “We have made some sacrifices in terms of the money we earn to do it.”

The incentive program rebates developers up to 100 percent of fees normally required by the city. It will expire when 4,000 units have been put under contract, unless City Council extends it, Dodson said.

Trouble brewing
In early 2009, the message was that this summer would be the breaking point when there would be more demand for off-post housing then there are places to live.

That spawned forums, studies and meetings between Fort Bliss leadership, the development community and city officials.

Many of the new soldiers are young, low in rank and not ready to be homeowners. They’d be looking for apartment in a market with a 94-percent occupancy rate for existing units, according to the El Paso Apartment Association.

And all that led to the city passing the incentives package.

Tom Fullerton, professor of economics and finance at the University of Texas at El Paso, cautions that there can be unintended consequences.

“Incentivising” the construction of that many units could put other apartment complexes out of business, he said, so the net gain might not be as high as expected.

Right now, Dodson said, they estimate that about 6,000 multi-family units need to be built to accommodate the incoming soldiers, but the number is only a rough estimate.

The stock of multi-family units in the city is projected to increase by about 200 this year, according to a report released in December by the University of Texas at El Paso’s Department of Economics and Finance. It also projects that multi-family starts will increase 32 percent.

The influx of troops to Fort Bliss is now 60-percent complete, according to Col. Edward Manning, garrison commander of Fort Bliss. The movement is projected to draw to a close sometime in 2012.

That timeline is important for builders, since it typically takes a year to work through the planning and financing stages of a new apartment complex, and two to three years to finish construction.

Bohannon says his company is approaching new projects conservatively, and not basing decisions solely on the hope of some future demand driven by growth at Fort Bliss.

“In today’s lending environment, that is really the approach to take,” he said.

What is clear is that soldiers have been able to find housing so far.

“Despite a high occupancy rate in the city, we don’t have people coming and saying they can’t find a place to live off-post,” said Col. Edward Manning, garrison commander of Fort Bliss.

To help soldiers who want to buy a home, Fort Bliss holds quarterly home buying seminars and classes.

“It makes better sense to help (soldiers) purchase homes because it is an investment,” said Yolanda Brown, director of the Fort Bliss housing office.

According to Desert View Homes’ marketing director Linda Cara, although they do see soldiers, there hasn’t been a major influx.

The company builds homes priced as low as $90,000 aimed at the first-time homebuyer.

“One of the neat things we are seeing,” Cara said, “is that they’re coming in and surprised that they can afford a home in El Paso.”

Incentives program

• Incentives available for new multi-family Texas apartments projects with at least 250 units

• Property tax increases resulting from new development will be used to rebate builders the city fees they pay

• One quarter of fees will be rebated for building 250-500 units, half of fees for 501-749 units, and all fees will be rebated for 750 or more units

• Developers must submit detailed site plan for approval by Development Services

25 February 2010

Transitional Apartments Offer Help to Homeless Veterans

Fort Worth Business Press

The finishing touches are all in place at Liberty House: the walls are painted, the carpet is in, the beds are turned down and the staff is ready to welcome home the first residents in a new transitional housing program for homeless veterans in Tarrant County.

Liberty House, a partnership between Mental Health Mental Retardation of Tarrant County (MHMRTC) and the United States Veterans Administration (VA), could begin accepting residents by March 1, once final approval is received from the government.

Located at 1501 E. El Paso St. adjacent to MHMRTC on the city’s near east side, Liberty House is part of Mayor Mike Moncrief’s 10-year plan to end homelessness in Fort Worth. The program also is an answer to a crucial need for residential, substance abuse and family supportive services for homeless vets in the community, according to Nikki Hatley, executive director of MHMR Visions. Founded in 2001, Visions is the charitable arm of MHMRTC and helps mobilize local resources and volunteers to bridge the gap in services the agency provides.

“There are almost 16,000 homeless veterans in Texas,” Hatley said, “and 920 of them are here in Tarrant County.”

The Department of Veterans Affairs provides funding for only 233 beds statewide. Liberty House will provide 30 beds for vets, who will stay about six months on average, but can stay up to a maximum of two years, Hatley said.

The need for more transitional housing for homeless vets is sobering, said John Goodrich, senior vice president of Worthington National Bank in Fort Worth. Goodrich is a veteran and a member of the advisory board for Liberty House.

According to the National Survey of Homeless Assistance Providers and Clients, 23 percent of all homeless people in America are veterans, and 89 percent of those were honorably discharged.

“They served their time and now they’re homeless,” Goodrich said. “The idea of Liberty House is to get them to reconnect back to the community and their families.”

Liberty House Transitional Housing Program differs slightly from MHMRTC’s other adult residential treatment programs, which include the 50-bed Pine Street rehabilitation facility and the 12-bed Billy Gregory Detoxification unit. There also is the Directions Home case management program provided by the city of Fort Worth and the veterans’ transitional housing program at the nonprofit Presbyterian Night Shelter, located next door to Liberty House.

The focus of the new program will be on addiction and sobriety, said Deirdre Browne, Liberty House program manager. Liberty House will give homeless veterans with chemical dependency, as well post traumatic stress disorder and other combat-related diagnoses, full access to all programs at MHMRTC. The program, expected to serve about 55-75 men and women each year, will offer vets supportive services leading them to recovery, residential stability, independence, employment and reintegration into the community.

“We’d like to provide more enriched services for the people who are here than the VA can provide,” Hatley said. “Our emphasis will be on getting them clean and sober and then helping them find a job and permanent housing. We’ll help give them opportunities to go to college and provide them other resources that will help them return to the community.”

Construction on the two-story, 7,500-square-foot veterans’ facility of Fort Worth apartments began in August 2009 after MHMRTC’s Addiction Services Division received a capital grant award from the VA totaling $600,000. The local agency was the only MHMR organization in Texas to receive the grant last year, Hatley said. Addiction Services matched the VA grant with an additional $300,000 to cover bricks and mortar construction costs that renovated and expanded an existing building into the transitional housing center.

The Architects Barnes/Associates Inc. of Fort Worth was the project architect. General contractor was Fort Worth-based RJM Contractors Inc.

Clients will live in a dormitory style atmosphere, two people to a room. Amenities include a kitchenette, a larger kitchen and dining room currently shared with clients of Presbyterian Night Shelter, a laundry room, separate showers for men and women and a courtyard. VA offices will be located upstairs.

Future plans call for a library and a computer room to facilitate employment preparation, a workout room and a clothes pantry stocked with donated business attire for the veterans’ job interviews.

“This will give opportunities for volunteers to come in and help the veterans develop resumes, coach for job interviews, teach them how to dress for interviews and help them with up-to-date computer skills,” Hatley said.

Because the VA capital grant did not provide for furnishings, Visions launched a fund-raising effort to furnish the interior spaces and make necessary renovations. All the bedrooms are complete, with several rooms sponsored by local businesses and individuals. Sofas, chairs, tables, a big screen TV and a piano have been donated. A quilting group from Richland Hills Church of Christ donated 30 handmade quilts for the beds. Lending some added decoration and a touch of home will be Fort Worth artist Nancy Lamb, who will paint panels of veterans through the ages. The paintings will be available for sponsorships, Hatley said.

Hatley estimates about $31,000 is needed to finish the kitchen renovation and purchase new appliances and utensils. The Fort Worth Airpower Foundation recently presented Liberty House with a check for $15,000 toward the kitchen makeover.

A grand opening and flag-raising ceremony is planned for Liberty House in late March, when the first homeless veterans are expected to have filled the housing unit. The Veterans Administration will determine the eligibility of individuals who apply for residency.

“These are the vets who are chronically homeless. When they come off the streets they need the time to adjust and become sober. They need to lose the bad habits they picked up on the streets,” Browne said. “Our goal is to create supportive good habits that will help them be successful.”

24 February 2010

Dallas-Forth Worth Home Prices up by 3 Percent

The Dallas News


Dallas-area home prices moved solidly higher in the latest measure of the country's housing market.

Dallas' December home prices increased by 3 percent from a year earlier in the monthly Standard & Poor's/Case-Shiller Home Price Index.

It was the second month in a row that area home prices rose on an annual basis. Prices were up 1.4 percent in November's Case-Shiller Dallas report – the first such gain in more than two years.

Overall prices fell by 3.1 percent in the 20 cities Case-Shiller tracks, indicating that much of the rest of the country still faces home market challenges.

"As measured by prices, the housing market is definitely in better shape than it was this time last year, as the pace of deterioration has stabilized for now," S&P's David Blitzer said in the report. "However, the rate of improvement seen during the summer of 2009 has not been sustained."

More than a dozen of the major U.S. housing markets had a year over year decline in home prices at the end of 2009, Case-Shiller found.

The biggest price drops were in Las Vegas, -20.6 percent, and Tampa, -11 percent.

San Francisco had the largest annual price gain in December – 4.8 percent – followed by Dallas and San Diego's 2.7 percent increase.

Case-Shiller tracks the prices of typical single-family homes located in each metropolitan area. The index does not include condominiums and townhouses. It only covers preowned properties – no new construction.

The Case-Shiller researchers compare sales of specific properties over time.

Dallas apartments and home prices are still about 6 percent below their peak in mid 2007, according to Case-Shiller's numbers.

Local real estate statistics show that median home sales prices in North Texas were unchanged in all of 2009 from 2008 levels, according to the North Texas Real Estate Information System.

Median prices fell by 3 percent in 2008 based on prices of homes sold by Realtors through the multiple listing service.

23 February 2010

Texas State Moves Forward with $50M Student Housing Project

Austin Business Journal

The Texas State University System Regents moved ahead with planning a 612-bed, $50 million student housing project late last week.

The group approved adding the project to the San Marcos campus' capital improvement program with an expected ground breaking date this fall. Regents will vote on design plans during its May meeting. If the project moves ahead as planned, it would open sometime in 2013.

The "North Campus Housing" project would total about 189,450 square feet on the corner of Comanche Street and Sessom Drive.

Other projects approved during the meetings Feb 18-19 include: Academic Services Building North ($985,000), Department of Housing and Residential Life Office Building ($15.8 million), Mitte Clean Room renovation ($1.1 million), Lampasas Hall renovation ($1.7 million), Multipurpose Educational Facility site and infrastructure improvements project ($2.2 million) and a rescue house and climbing tower for the Advance Law Enforcement Rapid Response Training program ($950,000).

The San Marcos location of the eight-campus school system currently has about $633 million worth of Texas apartments construction slated to take place in the coming years. The school added 2,500 students last semester and now enrolls about 30,800. The university system was founded in 1911.