Dallas Program Is Meant to Help with Home Improvements, but It's Far Behind Schedule

The population of Dallas is growing, and home prices are still at historic highs. But what happens when houses are occupied and still not up to code, or need repairs that the owners simply can’t afford? Dallas has a plan for that called the Home Improvement and Preservation Program (HIPP).

The program allows owners of single-family houses to apply for home-improvement loans designed to help finance repairs to their houses for things like safety, health and structural issues.

The program provides a way for low-to-middle income residents to repair their homes in ways they couldn’t normally afford. Unfortunately, the application process has been slow, and processing requests is taking longer than some would hope.

“Funding, contractors and the city’s contract execution process all impact service delivery timelines,” David Noguera, Dallas' director for housing and neighborhood revitalization, said by email. “On Aug. 20 we collected over 600 applications for the program, but we only have funding to serve about 50 residents; that’s less than 10% of those in need of the service. Staff are evaluating options to increase that percentage.”

One option they have to increase that percentage is by utilizing a third-party vendor, but Noguera said that the city doesn’t know who that would be yet.

HIPP includes two separate programs, one for major home rehabilitation and another for home reconstruction. The Major Home Rehabilitation Program is available to qualified homeowners and provides for up to $73,170 in improvements. The money is provided as a forgivable loan that is secured by a lien on the property.

Under this program, replacements or repairs on floors, HVAC systems, windows, kitchen and bath countertops and cabinets, as well as item like roofing and insulation, are all eligible.

If a home is beyond repair, it may qualify for the Home Reconstruction Program. In this case, the needed improvements require more than rehabilitation, so the home must be torn down and rebuilt from scratch.

Homeowners must meet several eligibility requirements to apply: they must be completely up-to-date on property taxes and liens, they must have a clear title for the property and owned it for at least six months, and it must be their primary residence. The home must also be within the Dallas city limits and owners must be able to purchase or already have satisfactory property insurance.

To meet those eligibility requirements, applicants must supply supporting information such as a copy of their deed and current mortgage statement, and all household members must also supply certain identification such as a driver’s license or other identification.

Applicants might also have to supply other records like a divorce decree or death certificate if either applies to their situation.

So, while this program offers a way for those who can’t afford to fix up their home, it requires a lengthy application process with no guarantees that they will qualify.

Meanwhile, real estate prices have dipped in recent months following a sharp spike throughout the pandemic. Despite dropping prices, rental costs have continued to rise.

A recent report by Zillow, the real estate website, found that North Texas is suffering from a large housing shortage. Although some 59,000 homes had been built in Dallas-Fort Worth as of early August, the report noted, the region still had a shortage of some 170,000 residences.