FIRST ORION PROPERTIES, LCC

JOHN H. CARNEY

1119 SINGLETON BLVD.

DALLAS TEXAS 75212
214-549-0555

JHCBLUE@GMAIL.COM

Mayor Rawlings
Office of the Mayor
City of Dallas
1500 Marilla St.
Suite 5EN
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 build a
relationship with the City that we always hoped to have. We make this proposal on behalf of
several landlords who have agreed to participate.
The Five Point Plan consists over $100,000,000 of new construction and financing:
1.
2.
3.
4.
5.

Low Income and affordable multi-family - West Dallas

Senior & Assisted living - West Dallas
Habitat for Humanities on HMK lots in West Dallas
Seller financed sales to tenants South and East Dallas
New construction of single family and townhomes West Dallas

- 250 units
- 100 units
- 120 units
- 400 units
- 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 share 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 Initiatives 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.
Our 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
It is not feasible for tenants paying less that $600, some as little as $275 to stay in single
family homes. Likewise, preserving the West Dallas Community is a high priority. Quality Multifamily is the only solution and we propose to build a 275 unit low income and affordable MultiFamily Plan on our 5 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: 1915 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

Legal 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
1115 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:
00000674929000000
Account Number:
00000674929000000
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 affordable 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 to 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 Departments Home Buyer Assistance Program funds are
available to first-time homebuyers at 80% (or less) of Area Median Family Income (AMFI) 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 citys 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 first 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:
If 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 - $350,000
McBroom Street in West Dallas 42 units
New Affordable Housing Townhomes Blk 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
low income units. We would expect an end to hostilities and a good working relationship with
the city.

One last suggestion. We have approximately 75 vacancies created by tenant move outs
since we announced the closure of HMKs residential rental business and its rental homes.
With the Citys approval and cooperation, we would take those houses that have not been
demolished yet, convey them to a new entity and allow the city to place the citys homeless into
those properties on an interim basis at no cost. 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 from us, but no cost to us, and the City would
have to be responsible for the cost of utilities, and we could anticipate some charitable
contributions of bedding and household necessities. Any repairs the City would require before
placing the homeless in the home. We average four to five residents per house, so that would
potentially house up to 375 people.
Respectfully Yours,

John H. Carney
JHC/mw
With copy to:
Khraish H. Khraish
HMK, Ltd
1119 Singleton Blvd
Dallas Texas 75212

John H. Carney
Joint Managing Partner
First Orion Properties, Ltd.

Implementation
1.

Code Enforcement demolition of 100 of the worst of west Dallass offending properties:
Boarded up, abandoned, vacant and trashed houses.
Code enforcement of vehicles not functional
Trash, litter and offending properties.

2.
3.

Enforcement of liens and fines, forced sales of lien properties.