The city of Dallas is launching a pilot program funded by federal money to clean up neighborhoods, but some council members are concerned it could inadvertently encourage gentrification.
The Neighborhood Clearance and Enhancement Program will focus on clearing, demolishing, and removing buildings and other structures in target neighborhoods to eliminate hazards and reduce crime.
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Chan Williams, assistant director of Budget and Management Services, presented the program to the Dallas City Council during a briefing Wednesday.
The city is proposing a nearly $30 million budget for the U.S. Department of Housing and Urban Development’s Consolidated Plan for Fiscal Year 2025-26.
It’s a five-year plan approved by the city in 2023 for Dallas to receive federal money to run community development and affordable housing programs.
Each year, the city needs to submit a plan for allocating the funds.
Although government funding has been cut in various areas nationwide, Williams said this program remains alive and is governed by HUD rules.
Around $300,000 will be allocated to run the new program.
The goal is to improve neighborhood conditions to attract new development, such as affordable housing and other economic initiatives.
District 11 Council member Jaynie Schultz asked how this program could not be seen as an opportunity for gentrification by clearing out neighborhoods.
But Ariel Garcia with the Code Compliance Department said the program isn’t meant to target neighborhoods but to eliminate dangerous properties.
“We don’t intend to make mass clearances, nor are we proactively looking for properties to clear.
These properties are properties we have received court-ordered demolition orders to facilitate,” Garcia said.
Federal funds available.
Deputy Mayor Pro Tem Adam Bazaldua, who represents District 7, expressed concern that the funds would not be approved or would be withdrawn due to recent changes in the federal government.
Janet Weedon, director of Budget and Management Services, said during the briefing that the Appropriations and Extensions Act 2025, which was approved by Congress and signed by President Donald Trump on March 15, provides full-year funding for federal agencies, including HUD.
“We don’t expect any significant [cuts] because of the continuing resolution that will get us through fiscal year 2025-26,” Weedon said.
“During this year, we’ll start looking ahead based on what we’re hearing from HUD.”
Some of the programs funded by the grant provide financial assistance to residents to buy and repair their homes.
Others focus on providing emergency assistance to renters and offering after-school programs for Dallas’s low- to moderate-income families.
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Council members said they want to maximize the dollars that go to residents and organizations instead of administrative costs, based on how the city managed previous federal grants.
“Is there a way we can be more efficient?
I’m just looking at how we’re spending less on that aspect [administrative costs] and more on actual helping people with staying housed and repairing their homes,” District 13 Council member Gay Donnell Willis said.
Willis pointed out the Home Investment Partnership Program.
The proposal allocates about $5.5 million for the program and around $900,000 for administrative and staff fees.
Cynthia Rogers-Ellickson, director of the Housing and Community Development Department, said the city receives a large number of applications, and it takes time to review each one.
She said some of the programs require the city to hire contractors.
The city of Dallas won a $2.3 million HUD grant in 2018 to remove lead from homes.
Despite applicants, only four residents had contractors remove lead from their homes during the three-year program, a Dallas Morning News investigation found.
Related: Dallas received $2.3M to remove lead from residents’ homes. Many are still waiting.
The city spent about $400,000 and returned the rest of the grant to the federal government.
A city-initiated audit to look into how the money was spent is underway.
The report is expected to be released this summer.
City Council must approve the plan by June 11, before its summer break.
HUD’s deadline to receive the plan is Aug. 15.
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