With New Rules, Housing Board Loses Power

In many ways, the planned site for a huge affordable apartment complex in South Dallas seemed perfect.

The project, known as Hatcher Square, sits next to a train station and bus lines; it is close to jobs, churches and community centers, and surrounding residents have widely supported its construction.

But according to its backers, Hatcher Square will be all but impossible to build under new state rules that govern the lucrative subsidies developers rely on to build affordable housing.

The rule changes, approved in late 2011, were intended to address two major concerns: that the Texas Department of Housing and ...

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