FOR IMMEDIATE RELEASE: Oct. 18, 2022
DALLAS 10/19/22- The Dallas Housing Opportunity Fund (DHOF), launched by the city to expand affordable housing and economic development, has made its first project investment and closed its first investor, bringing new capital to Dallas communities.
On September 15, 2022, DHOF closed a $3.4 million investment to support construction of Kiva East, a project that will create 87 new rental homes along the Santa Fe Trail in East Dallas, as well as an on-site day care center for families that might otherwise struggle to afford childcare.
The Fund tapped capital from the City of Dallas and anchor investor Sunflower Bank to support the new development. Seventy percent of the apartments will be affordable to families earning 60 percent of the area median income ($51,720 for a family of four) or less, including some units priced for families earning less than $26,000 (source).
”I am excited to see this initial activity for the DHOF,” said Councilmember Tennell Atkins, Chair of the City of Dallas Economic Development Committee. “Through partnerships with LISC, TREC Community Investors and Sunflower Bank, we are able to leverage City-funding into much needed affordable housing in East Dallas plus on-site childcare for our working Dallas families.”
DHOF was seeded with $6 million from the City of Dallas and expanded with $7.5 million in debt and equity financing from Sunflower Bank. It is managed by LISC Fund Management (LFM), a unit of the nonprofit Local Initiatives Support Corporation (LISC), which is a certified community development financial institution (CDFI). LFM is working with investors, developers and local partner TREC CI—TREC Community Investors—to identify projects, originate loans and fuel development in high-opportunity communities.
“It is so exciting to announce Sunflower Bank’s investment in the Dallas Housing Opportunity Fund that will bring much-needed affordable housing to East Dallas. As a community-based bank, it is our priority to collaborate with business, government, and community leaders to solve community-wide challenges. We are thrilled to provide the financing support to make this inaugural project possible and more to come,” said Alissa Foth, executive Community Reinvestment Act officer at Sunflower Bank.
As the first Fund investment, Kiva East will connect Dallas families that have low-to-moderate incomes with housing near strong schools, jobs, retail, transit and recreational offerings. Moreover, the developers, Saigebrook Development and O-SDA Industries, have earmarked space at the Eastside Avenue project for a Bezos Academy, a free Montessori-inspired pre-school for 40 students, with priority placement for children who are experiencing homelessness or in the foster care system.
“Kiva East is excited to partner with the City of Dallas and LISC to provide affordable homes for families in need, combined with services that enrich the lives of our residents. Providing tuition-free on-site early childhood education combined with the stability offered by affordable housing is an opportunity to support better educational outcomes in our communities. This would not be possible without the financial support from the Dallas Housing Opportunity Fund,” said Lisa Stephens, president and owner of Saigebrook Development.
“This project clearly reflects long-term efforts to bridge gaps in health, wealth and opportunity for residents of Dallas—especially disparities related to race and class,” added George Ashton, president of LISC Fund Management. “We are excited to have Sunflower Bank as the Fund’s anchor investor to support this important work, and we are grateful to the city of Dallas for having the foresight to create a housing finance vehicle that can spur economic gains across the city.”
For more on DHOF, visit https://www.liscstrategicinvestments.org/dallas-housing-opportunity-fund.
About Dallas Economic Development Affordable Housing Program
The purpose of the Dallas Economic Development Affordable Housing (EDAH) program is to build stronger neighborhoods and communities by equitably creating and maintaining affordable housing throughout the City of Dallas (City) through the provision of grants and/or loans for affordable housing projects and programs. The EDAH is an economic development program created pursuant to the economic development programs provisions of Chapter 380 of the Texas Local Government Code to promote state and local economic and community development and to stimulate business and commercial activity within Texas.
About LISC and LISC Fund Management
LISC is one of the country’s largest community development organizations, helping forge vibrant, resilient communities across America. We work with residents and partners to close systemic gaps in health, wealth and opportunity and advance racial equity so that people and local economies can thrive. Since our founding in 1979, LISC has invested $26.7 billion to create more than 463,000 affordable homes and apartments, develop 78.5 million square feet of retail, community and educational space and help tens of thousands of people find employment and improve their finances (source). The investment pools sponsored by LISC are available only to eligible investors, are offered only pursuant to their official offering documents, and are managed by LISC Fund Management, LLC, a wholly owned subsidiary of LISC. LISC Fund Management is an investment adviser registered with the U.S. Securities and Exchange Commission (SEC). For more, visit www.lisc.org and www.liscstrategicinvestments.org.
About the Dallas Housing Opportunity Fund
Targeted to respond to Dallas' urgent need for additional affordable housing units, the mission-oriented investment vehicle – the Dallas Housing Opportunity Fund (DHOF) promotes fair housing by fostering investments that dismantle long-standing patterns of segregated housing. DHOF invests in and alongside local housing developers to create and preserve affordable housing options in areas of high opportunity, targeting residents earning 30 to 80 percent the area median income for residents of the City of Dallas. DHOF leverages municipal funds with private capital to drive much-needed development in Dallas. DHOF is managed by LISC in partnership with Dallas based The Real Estate Council Community Investors (TREC CI). For more about DHOF, please visit https://www.liscstrategicinvestments.org/dallas-housing-opportunity-fund
About Sunflower Bank
Operating as Sunflower Bank, First National 1870 and Guardian Mortgage, Sunflower Bank, N.A. provides financial solutions to the individual communities it serves. With $7.1 billion in assets as of June 30, 2022, a branch network in five states, and mortgage capabilities in more than 40 states, Sunflower Bank, N.A. provides a full range of relationship-focused services to meet personal, business and wealth management financial objectives. Member FDIC. Equal Housing Lender. First National 1870 and Guardian Mortgage are divisions of Sunflower Bank, N.A.
About TREC Community Investors (TREC CI)
For more than 30 years, The Real Estate Council (TREC) has made catalytic investments with over 250 nonprofit organizations dedicated to transforming Dallas. Community Investors furthers that work by creating equitable development that revitalizes the region’s most underserved communities. Employing a place-based strategy that transforms a neighborhood block by block, Community Investors provides a combination of loans, equity-equivalent investments, and expert TREC-member technical assistance to work in a collective partnership with neighborhood leaders and community members. Community Investors is a 501 c3 organization certified by the United States Department of the Treasury as a Community Development Financial Institution (CDFI). Learn more at treccommunityinvestors.org.
Disclaimer: This document is for informational purposes only and should not be relied upon as investment advice. This document is not a recommendation for any security or investment. An investment in DHOF entails a high degree of risk, including the risk of loss. Past performance is not indicative of future results or a guarantee of future returns. (Full disclaimer linked here)
References made to endorsements by any third-party to invest with LFM are not indicative of future performance and do not imply any guaranteed level of service, skill or training. Investors should not rely on endorsements for any purpose and should conduct their own review prior to investing. Tennell Atkins, Alissa Foth, and Lisa Stephens are not “promoters” who are compensated. Disclosure that a testimonial /endorsement was given by a current client or investor or a person other than a current client or investor.