Pallet closure raising questions about planned Dallas housing project

A company selected by the City of Dallas to provide temporary housing units for people experiencing homelessness is shutting down, raising questions about the future of a planned transitional housing community in South Dallas. Pallet, a Washington-based company, announced last week that it is closing its business after nine years. The company says its mission will continue in other forms, but 'Pallet the business is coming to an end.' The announcement comes as Dallas moves forward with plans for a proposed 75-unit, non-congregate transitional housing community on 3.6 acres of TxDOT property in Council District 7. In an Aug. 24 memo, the city's Office of Housing and Community Empowerment (OHCE) said Pallet had been approved as a sole-source vendor. The city planned to buy 75 Pallet units, along with shared spaces for guests and staff…a price tag worth $2.7 million dollars that would be paid for with 2024 bond funds. According to OHCE its timeline looks like this: October 2026 – RFP soliciting bidders for management services issued. MOU between City of Dallas and TxDOT is finalized. December 2026 – Order is placed for pallet products and community spaces. Operator is selected and annual operational budget is finalized. February 2027 – Site development/infrastructure will be begin including fencing. September 2027 – Infrastructure complete and pallet homes installed. Pallet says its shelters have created more than 6,000 beds and provided shelter to an estimated 30,000 people across the United States and Canada since 2017. It is not yet clear whether Dallas' project will be affected by the company's closure. KRLD reached out to Pallet and Dallas' OHCE for comment about the closure and planned project. Neither have responded as of Tuesday. The proposed community is intended to provide temporary housing while connecting people living on the streets with supportive services and pathways to permanent housing. The city estimates annual operating costs could range from $1.5 million to $2 million. This is a developing story.