Mayor Rawlings Office of the Mayor City of Dallas 1500 Marila St Suite SEN Dallas, Texas 75201 Re: _ Five for Five Hundred - A Five Point Plan to Preserve West Dallas ‘Communities; a Five Point Plan for Five Hundred Families, ‘a $100,000,000 Affordable living plan for Grow South - 500 more Families Dear Mayor Rawlings: First Orion Properties, LLC an affiliate of HMK, Ltd would like to propose the following plan to assist with the affordable housing crisis in Dallas and particularly West Dallas, the Los Altos neighborhood while benefiting many areas of Dallas and which will allow us bulld a relationship with the City that we always hoped to have. We make this proposal on behalt of several landlords who have agreed to participate. ‘The Five Point Plan consists over $10,000,000 of new construction and financing: 1. Low Income and affordable multi-family - West Dallas = 250 units 2. Senior & Assisted living - West Dallas = 100 units 3. Habitat for Humanities on HMK lots in West Dallas = 120 units 4. Seller financed sales to tenants South and East Dallas = 400 units 5. New construction of single family and townhomes West Dallas - 200 units Our hope is that the city of Dallas will help refine, and then embrace this proposal as its own, together we can implement a successful revitalization plan together, and forget the stigma ‘and misunderstandings of the past. We propose being a willing partner in the revitalization of west Dallas and to contribute to, and stare in its growth. We see this proposal as a win - win plan for all involved. We hope you do too, We welcome your suggestions, and ultimate endorsement of our plan, your support and the chance to publicly mend fences. The projects and potential enhancements described herein total as much as $100,000,000 in direct economic value to Dallas, they provide quality housing for over 1,000 families, make home owners out of more than 500 families now renting and will give both momentum and direction to the City’ Grow South and Single Family Housing Initiative, all while helping to preserve the West Dallas neighborhood. The Plan requires an investment by all, but it leads with a significant commitment by several major property interests. We already have the land, together we have the ability, and working together we have the will to make it happen. We look to support the Single Family Housing Initiative’s plans and offer up as many as 100 lots to build new homes in south Dallas and to turn as many as 400 rental properties with tenants into owner occupied homes with new homeowners purchasing what were previous rental properties. ‘We have the property to propose the following projects, some of which are already in process, and which combined will house 1,000 families in low income and affordable housing forSouth and West Dallas, make home ownership options available to some who would not otherwise qualify for conventional financing, and facilitate the growth and redevelopment of critical areas of Dallas. Most importantly, it will realign our interests and put us back on the cooperative path with the City that we had hoped to follow. ur plan will provide housing options for those families displaced by taking out of service as many as 305 single family residences, more than doubling the number of demolished structures improving the grade of your plan point - Culture of Clean. Plan Point 1. Affordable and low income housing - 250 Families 90% low income and affordable level housing. NO OTHER PROJECT IN DALLAS IS PROPOSING TO BE 90% LOW AND AFFORDABLE FINANCING. A 15 YEAR COMMITMENT TO AFFORDABLE HOUSING IS OFFERED BY HMK. Timing: Immediate - critical need Itis not feasible for tenants paying less that $600, some as litle as $275 to stay in single family homes. Likewise, preserving the West Dallas Community is a high priority. Quality Multi- family is the only solution and we propose to build a 275 unit low income and affordable Multi- Family Plan on our 6 acre tract located at 1919 Singleton Blvd. Dallas Texas. To preserve the affordable economics of the needed housing, significant Federal and local financial support is essential. The land is available to contribute to the project financing. The rent levels will be discouraging, and public funding will be required, Project size - Est. $40,000,000 in Anticipation of Low-Income Housing Tax Credit-LIHTC or bond financing and city assistance. LIHTC funding for tenants living in the low income units who meet the eligibility requirements of the LIHTC Program and remain eligible throughout their tenancy. The property is two adjacent 2.83 acre tracts, totaling 5.66 acres or about 250,000 sq.ft Requires rezoning from CR and R-5(A) to MF Parcel ID: 00000679132000000 Account Number: 00000679132000000 Neighborhood N/A Site Address: 1916 and 1919 SINGLETON BLVD Map Grid: 44-N (DALLAS) ‘Account Type: Commercial Legal Description 1: BLK 7125 Legal Description 2: TR 7 and TR d8 W ACS 2.838 ‘Owner Name: HMK LTD Parcel ID: | 00000679138000000 Account Number: 00000679138000000 Legal Description 1: BLK 7125Legat Description 2: TR 7 E ACS 2.838 ‘Owner Name: HMK LTD ‘Owner Address: 1119 SINGLETON BLVD ‘Owner City: DALLAS Owner State: TX Owner Zip: 75212 Owner Zip +4:5217 Improvement Value: N/A Land Value: $277,720 City support for Federal LIHTC funding for maximum amount available - City funds balance of construction. 15 year restriction to 90% of units (40% to low income, 50% to affordable income and 10% market rate. Plan Point 2. ‘Senior & Assisted living with a companion affordable pre-school day car 100 Seniors / couples, 50-100 families with pre-school age children. Implemented in conjunction with LuLac and neighborhood support, to house Los Altos seniors on immediately available HMK vacant land: Timing: Immediate - critical need Los Altos Senior and Assisted Living 100 unit Assisted living facility located at 1114 and 1118 Shaw St. Dallas Texas 75212. Phase 1 60 units Phase 2 40 units Pending acquisition of adjacent property - 3438 Crossman Street Companion affordable pre school day care facility - 1115 Shaw Street. 60-100 children provided 5 day per week, 8-10 hour per day affordable child care for parents of minor children of west Dallas Property: 1115 SHAW ST Requires Rezoning from R-5(A) to Parcel ID 00000674928000000 Account Number: 00000674928000000 Neighborhood 4DSC04 Site Address 1115 SHAW ST Map Grid: 44-K (DALLAS) ‘Account Type:Residential Legal Description 1: BLK 7110 Legal Description 2: TR 19 200X88.7X200X90 Plan Point 3. _ First Time and Affordable Housing Options - 120 new upscale Habitat single family homes in West and South Dallas Timing: Immediate - critical need 120 new homes by Habitat for Humanities in West and South Dallas on former HMK lots. ‘As many as 30 of the 120 are existing lots which will not cause any displacement. Completed housing to mitigate displacement. Multi-family options to further mitigate displacement. Some existing tenants may qualify for a Habitat home and financing. Habitat for Humanities has successfully used the SCIP concrete panel technology to build its homes: See Agreements may be feasible to preserve existing housing until alternative housing can be put in place. Plan Point 4. _ Sale of rental single family homes to tenants - 350 Families become owners of existing housing 50 New single family homes is South and West Dallas Timing: Immediate - critical need We will provide up to $20,000,000 in Seller Financing for up to 350 homes to existing tenants and where tenants decline to purchase, then a public lottery conducted as directed by the City or its designee to low income and atfordable income Dallas residents. HMK, Ltd. et al. will extend $20,000,000 in seller financing with Zero Down Payment to tenants, ‘As many as 350 home sales to the tenants of the houses from HMK and other associated landlords. Current rent amount becomes mortgage payment amount on a 10-12 year amortization at 4.5% interest.40-50 Seller financed lots in South Dallas to be dedicated to affordable house construction. Lot lottery o affordable home builders. Seller financed lots to builders to facilitate builder interim construction financing, subordinated to construction loan and to be paid at placement of permanent mortgage. City of Dallas to inspect and determine what repairs and/or health and safety issues may exist and/or other repairs are needed, and the City to fund those repairs to new home owners. Dallas Housing/Community Services Department's Home Buyer Assistance Program funds are available to first-time homebuyers at 80% (or less) of Area Median Family Income (AMF) for principal reduction, down payment, and closing costs assistance up to $14,000. This program allows up to $1,500 of the assistance to be used for minor repairs on existing properties required to meet Minimum Housing Standards. A first-time home buyer is defined as someone who has not owned a home in three years. Under first-time home buyer programs, single parents and displaced homemakers automatically are considered first-time homebuyers ‘Any money expended by the City will be recovered: At city’s election: the funds used for repairs and improvements can be a grant to tenant/ buyer or a second lien deed of trust not to exceed 20% of frst lien amount without Seller approval. So long as buyer performs for the first year, $ for $ with the mortgage balance, Seller lender will service both first and second lien mortgage and and Seller will remit and to recover that money. Terms: mortgage approximates current rent rate for 10 - 12 years, fully amortizing at 4.5%. First right to present tenants: It existing tenant declines or does not qualify, then raffle to be conducted by City or its designee for the pool properties - South Dallas HMK houses and other associated landlords, Plan Point 5. Home Ownership - New construction in West Dallas Timing: Immediate - critical need New Los Altos Construction - 2 Townhouse Developments 100 new homes - market rate $199,500 - $850,000 McBroom Street in West Dallas 42 units New Affordable Housing Townhomes Bik A/7104 lots 1-20Walmsley Ave.- 60 units -to be priced in the $199,500 price range giving new homeowners a chance to own at the prevailing rental rates. We hope to coordinate with all of the resources that the city of Dallas has to offer, in addition to its support for our application for LIHTC funding and or bond funding to provide the fow income units. (One last suggestion. We have approximately 75 vacancies created by tenant move outs since we announced the closure of HMK's residential rental business and its rental homes. With the City’s approval, we would take those houses that have not been demolished yet, convey them to a new entity and allow the city to place the city’s homeless into those properties on an interim basis. This would be a temporary fix, but as winter approaches and there is no other or better or cost effective means of providing a safe, dry alternative to the street. There would no charge, but the City would have to be responsible for the cost of utlities, and any repairs the City would require before placing the homeless in the home. We average five residents per house, so that would potentially house 375 people. Respectfully Yours, Cs Ce Khraish H. Khraish HMK, LTD,