Memorandum

DATE February 28, 2014 CITY OF DALLAS

TO Honorable Mayor and Members of the City Council
SUBJECT Upcoming Changes in the Housing and Community Services Department
I wanted to make sure you are apprised of some immediate and upcoming changes in the Department of
Housing/Community Services. These changes are designed to enhance transparency and accountability in Housing
programs, policies, development projects and transactions. Many of these adjustments are currently underway, and
others will take some time to design and implement. Overall, I am confident these actions will make a positive
difference moving forward.
Within the next 30 days, we will accomplish the following:
Begin the executive recruitment of a Housing Director with national caliber credentials and expertise in
housing programs.
Transfer responsibility for all property transactions (excluding Land Bank functions) from the Housing
Department to the Real Estate Services Division of Sustainable Development and Construction.
Conduct an internal review by staff independent from the Housing Department. The Office of the City
Auditor will enter into a procedures engagement with the City Manager's Office to ensure the proposed
procedures meet the City's needs for an independent assessment. The following projects will be examined:
o Review all program and project approvals along Bexar Street to verify consistency with Council
direction and adherence to all applicable rules and regulations.
o Review and analyze all property transactions along the Lancaster Corridor associated with
Housing/Economic Development projects, including Patriot's Crossing, Lancaster Village, Opal and
Lancaster-Kiest Shopping Center to verify consistency with Council approvals and identify any potential
conflicts with existing policies, rules and regulations.
Additionally, there are a number of procedural changes that staff will execute as soon as possible. Prior to full
Council consideration and action, development projepcts that contain both Housing and Economic Development
incentives, subsidies or assistance will be briefed at both the Housing Committee and the Economic Development
Committee. Staff will also coordinate with the Chairs of the Housing and Economic Development Committees to
convene joint meetings on a quarterly basis. The ultimate goal is to improve communication, increase transparency
and fine tune our processes so that everyone is fully-informed. Staff has also been instructed to immediately begin
the recruitment and hiring of a Compliance Officer whose duties will include the oversight of all projects to ensure
strict compliance with all applicable City, State and Federal regulations, policies, ordinances and procedures.
Looking out to the next several weeks, staff will undertake a number of new initiatives. We are working with
Councilmember Davis to convene a Housing Committee retreat in early March to receive direction and guidance from
the committee members on recommended actions and changes. The Office of Fair Housing is planning a Regional
Fair Housing Summit in April (Fair Housing Month) in collaboration with the Fort Worth Regional Fair Housing Equal
Opportunity Office (FHEO). While still in the planning stages, we will invite partiCipation from the North Central Texas
Council of Governments (NCTCOG) and many of our suburban neighbors. We welcome their involvement and
attendance at this event to learn about issues and opportunities in our region from national and regional-caliber Fair
Housing experts. Lastly, we are developing a strategy to promote non-profit and Community Housing Development
Organization (CHDO) activity that focuses on outreach and engagement, building capacity of existing non-profits,
increasing the number of new non-profits, and strengthening financial capacity.
"Dallas, the City that Works: Diverse, Vibrant and Progressive"
DATE
SUBJECT
February 28, 2014
Housing and Community Development Organizational Changes (Page 2 of 2)
In addition to these program changes, staff will brief the full Council in March on several proposed, broader initiatives
with longer timeframes. Some of these will include:
Launching a new Housing Plus Plan that will be led by a national consultant with housing and fair housing
expertise. This effort will engage our neighborhood and community leaders, and institutional, private sector
and non-profit stakeholders to craft a comprehensive housing strategy including goals, policies and actions
to promote a diverse and robust housing mix. This effort will also align Dallas' housing, economic
development and transportation goals and address any obligations we have under Federal law .
Reviewing and making recommendations on department restructuring, including changes in procedures and
operational practices.
Completing amendments to the Consolidated Plan as necessary for alignment with the Housing Plus Plan.
Revising the existing "Analysis of Impediments" project to incorporate "Proposed Rule" standards. We will
work collaboratively with the Regional Office of FHEO to produce a new best practice model for the Analysis
of Impediments report.
These changes are designed to increase the transparency, accountability and responsiveness of department
operations in the short-term, while also laying a foundation to begin a new vision that supports the city's broader
goals of sustaining our competitiveness in the twenty first century global economy.
Please contact me or Theresa O'Donnell should you have any questions.

\ ' onzatez
V" City Manager
cc: Warren M.S. Ernst, City Attorney
Craig D. Kinton, City Auditor
Rosa A. Rios, City Secretary
Daniel F. Solis, Administrative Judge
Ryan S. Evans, Interim First Assistant City Manager
Jill A. Jordan, P.E. , Assistant City Manager
Forest E. Turner, Assistant City Manager
Joey Zapata, Assistant City Manager
Charles M. Cato, Interim Assistant City Manager
Theresa O'Donnell, Interim Assistant City Manager
Jeanne Chipperfield, Chief Financial Officer
Elsa Cantu, Assistant to the City Manager
Frank Librio, Public Information Officer
"Dallas, the City that Works: Diverse, Vibrant and Progressive"