Dallas would lend up to $8.8 million to fill the funding gap on Bella Limon, an 86-unit apartment building planned for four lots on Belmont Avenue, under a deal city staff will outline to the City Council's Housing and Homelessness Solutions Committee on Monday, Oct. 26.
The full council is scheduled to vote on the development loan agreement on Dec. 9, according to a briefing memo from Assistant City Manager Liz Cedillo-Pereira.
The project
The developer, O-SDA Industries, and its affiliate NaoBeck Development plan to tear down commercial buildings on a roughly 0.88-acre site at 4311, 4319, 4325 and 4329 Belmont Ave. and build a mixed-income complex in their place. The plan calls for 24 one-bedroom, 46 two-bedroom and 16 three-bedroom apartments, plus about 5,000 to 5,500 square feet of commercial or community space.
Of the 86 units, 69 would carry income limits and 17 would rent at market rates. The restricted units are set aside for households earning 30%, 50% or 60% of the area median income, with the largest group, 34 units, at 60%.
The memo says the project has already won a preliminary 2026 award of competitive 9% housing tax credits from the Texas Department of Housing and Community Affairs, after the council passed a resolution of support in February. It received its tax credit commitment in July.
Why the city is being asked for money
According to the memo, higher construction costs, lower prices for tax credits and limits on how much credit a single project can receive left a gap that the credits and conventional loans no longer cover. A third-party underwriter concluded the project would not be feasible without the city's participation, the memo says.
The city's share would come in two pieces: $5 million in federal Community Development Block Grant or HOME funds, depending on availability, and $3.8 million from fees developers pay in lieu of building affordable units under the city's Mixed-Income Housing Development Bonus program.
