Dallas Approves Tax-Exempt Housing Deal Near Medical District Despite Pushback

City council authorizes new affordable housing project despite community opposition and concerns over tax abatements.

Apr. 10, 2026 at 10:05am

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A textured, realistic painting of a multi-story apartment building in warm, golden tones, with long shadows cast across the facade, conceptually representing the mixed-income housing project in Dallas and the tensions around its tax-exempt financing.A new mixed-income housing development near Dallas' Medical District aims to provide affordable homes for the city's workforce, but the project's tax-exempt financing has sparked debate over equitable development.Dallas Today

Despite community opposition, the Dallas City Council has approved a new affordable housing deal to support the construction of mixed-income housing near the Dallas Medical District. The project, led by real estate firm GoodHomes Communities, will convert a former extended stay hotel into 142 units, with 65 reserved for those earning 60% or less of the area median income. The deal has faced criticism from some council members and residents over the city's frequent use of tax abatements to finance such projects.

Why it matters

This decision highlights the ongoing debate in Dallas over how to address the city's affordable housing shortage, with some officials arguing that tax-exempt deals like this one are not the best approach. The project's location near the medical district also raises questions about the equitable distribution of affordable housing across the city.

The details

The Dallas City Council voted 10-4 to approve the GoodHomes Communities project, which will convert a former Sonesta Hotel into 142 mixed-income units. Under the deal, 65 of those units will be reserved for those earning 60% or less of the area median income, with rents starting around $1,233 for a one-bedroom. Only 7 units will be set aside for low-income renters at $659 per month, with the rest at market rates starting at $1,450. The project will be financed through a tax-exempt arrangement with the city's Public Facility Corporation, removing the property from the tax rolls for 45 years.

  • The Dallas City Council voted on the GoodHomes Communities project on April 10, 2026.
  • The project was previously sent back to staff in February 2026 over concerns about community support.

The players

GoodHomes Communities

A real estate investment firm that specializes in redeveloping underperforming hospitality or senior properties into workforce housing.

Dallas Public Facility Corporation

A city-affiliated nonprofit used to help finance mixed-income housing projects in Dallas.

Cara Mendelsohn

Dallas City Council Member for District 12, who has cautioned against forgoing property tax revenues via the city's Public Facility Corporation.

Jesse Moreno

Dallas City Council Member for District 2, who represents the area where the GoodHomes project is located and opposed the tax abatement.

Daniel Matian

Managing director at GoodHomes Communities, the developer of the project.

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What they’re saying

“This is not a good deal for our taxpayers… There are a lot of different ways we can help encourage and support affordable housing. This isn't it. Just taking something off the tax rolls for a generation is bad fiscal management, especially when we know we have other kinds of housing that are available that need our encouragement and dollars to come to fruition.”

— Cara Mendelsohn, Dallas City Council Member, District 12

“This area is a legacy area, primarily African-American, older individuals who enjoy the quality of life that they are familiar with, and for those reasons, I will continue to stand with the community and oppose this project.”

— Jesse Moreno, Dallas City Council Member, District 2

“Today, the property is a shuttered motel. What will replace it is regulated mixed-income housing serving long-term residents. This is workforce housing for people already working in the corridor: nurses, police officers, airport and airline staff, hospitality workers, and warehouse employees. Bringing working families into stable housing strengthens a neighborhood and supports continued investment in the Medical District.”

— Daniel Matian, Managing Director, GoodHomes Communities

What’s next

The project will now move forward with the 45-year tax-exempt period, with the first units expected to be completed and occupied within the next 18-24 months.

The takeaway

This decision highlights the ongoing tension in Dallas between the need for more affordable housing and concerns over the city's frequent use of tax abatements to finance such projects. While supporters argue the GoodHomes development will provide much-needed workforce housing, critics contend the deal is not a good use of taxpayer resources, especially as the city faces budget constraints.