Dallas Housing Opportunity Fund Raises $41.5 Million for Affordable Housing

Deal News | Nov 20, 2024 | Local Initiatives Support Corp

The Dallas Housing Opportunity Fund (DHOF), managed by LISC Fund Management, LLC, has raised $41.5 million to support affordable housing development across Dallas. Originally launched in 2022 with $6 million in seed funding from the City of Dallas, the fund has since attracted additional private investments and deployed $34 million across seven projects. The fund aims to tackle the worsening affordable housing crisis in the city, particularly aiding cost-burdened renters. New partnerships have been formed, including a $3 million investment from BOK Financial, alongside longstanding partners like Charles Schwab Bank and KeyBank. These investments are being directed into affordable loans for housing development, benefitting people with low-to-moderate incomes. Since its inception, DHOF has aided nearly 500 affordable rental units and facilitated development costs totaling $130 million. The fund's impact is underscored by projects like Oak Lawn Place, an 84-unit development for seniors, backed with a $5.4 million investment by DHOF. The partnership involves entities like the City of Dallas, TREC Community Investors, and nonprofit organizations, all working together to address Dallas's immediate need for affordable housing.

Sectors

Real Estate
Financial Services
Community Development

Geography

United States – The focus is on the city of Dallas, located in the United States, where the housing fund is active.
Dallas, Texas – The article is centered on developments within Dallas, Texas, where the Dallas Housing Opportunity Fund operates to mitigate housing challenges.

Industry

Real Estate – The article focuses on affordable housing developments in Dallas, highlighting investments into real estate projects aimed at providing housing solutions.
Financial Services – Involves significant investments and funding activities managed by LISC Fund Management, a key player in impact investing and financial management for community development projects.
Community Development – The collaboration between different entities is geared towards improving community infrastructure and addressing social housing needs, a fundamental aspect of community development.

Financials

$41.5 million – Total funds raised by DHOF to support affordable housing.
$6 million – Seed funding provided by the City of Dallas to launch DHOF in 2022.
$34 million – Amount already invested by DHOF across seven developments.
$3 million – Investment from BOK Financial to support affordable housing projects.
$5 million – Investment amounts from both Charles Schwab Bank and KeyBank into the fund.
$5.4 million – DHOF investment in the Oak Lawn Place project for seniors.
$31 million – Total development cost of Oak Lawn Place.
$130 million – Total development costs of projects supported by DHOF investments since inception.

Participants

Name	Role	Type	Description
LISC Fund Management, LLC (LFM)	Manager of the Dallas Housing Opportunity Fund	Company	A mission-driven impact investment firm managing assets across various funds in the U.S.
City of Dallas	Partner and initial funder	Government	Provided the initial $6 million in seed funding to launch the DHOF.
TREC Community Investors	Partner	Company	A philanthropic real estate-focused organization partnering to achieve equitable neighborhood development.
Charles Schwab Bank	Investor	Company	Ongoing partner providing $5 million investment in the fund.
KeyBank	Investor	Company	Longtime partner investing $5 million in the fund to support affordable housing.
BOK Financial	Investor	Company	New partner contributing $3 million for affordable loans to housing projects.
Resource Center of Dallas	Housing Developer	Charity	Developed Oak Lawn Place, an affordable housing project for seniors with DHOF support.
Tiffany Durr	President of LISC Fund Management	Person	Leader of LISC Fund Management, overseeing funds and investment strategies.
Gilbert Gerst	Senior Vice President of Community Development Banking at BOK Financial	Person	Represents BOK Financial in committing investments to support Dallas housing.
Brian Maddox	Head of Community Development Financial Institutions (CDFI) lending and investment at KeyBank	Person	KeyBank official emphasizing the company's commitment to affordable housing investments.
Jamee Jolly	President and CEO of The Real Estate Council	Person	Leads the organization in partnership efforts to improve housing availability in Dallas.