Title
Conduct a Public Hearing to Consider/Discuss/Act on a Resolution of the City Council of the City of McKinney, Texas, Determining No Objection to the Application of the "Newsome Homes" to the Texas Department of Housing and Community Affairs (TDHCA), for 4% Tax Credits for the Rehabilitation of Multi-Family Units Within the Project
Summary
MEETING DATE: January 6, 2015
DEPARTMENT: Housing & Community Development Department
CONTACT: Janay Tieken, Housing and Community Development
RECOMMENDED CITY COUNCIL ACTION:
· Approve Resolution
ITEM SUMMARY:
· The McKinney Housing Authority and co-developer Carleton Residential Properties have applied to TDHCA for 4% tax credits for the redevelopment of Newsome Homes.
· Newsome Homes, LP is asking for a Resolution of No Objection from the City of McKinney, for the application submitted to TDHCA for 4% tax credits.
BACKGROUND INFORMATION:
· The project consists of the demolition of the nearly 50 year old, existing 64 units and the redevelopment of the property into a three-story, 180 unit, affordable, multi-family development for seniors and persons with disabilities.
· Newsome Homes is located east of McDonald St., near McMakin St. and Amscott St. on four parcels owned by the McKinney Housing Authority.
· The new facility will have two buildings, featuring covered entrances, a library, fitness center, business center, meeting rooms, supportive services offices, and green spaces with gazebos, BBQ grills, and walking paths.
FINANCIAL SUMMARY:
· The estimated total cost of the project is approximately $22 million. Private equity and tax credits are financing approximately $18 million.
· On August 4, 2014, the City Council approved a contribution of approximately $1.7 million toward the project, including $100,000 in Community Development Block Grant (CDBG) funding and $600,000 in McKinney Community Development Corporation (MCDC) funding.
BOARD OR COMMISSION RECOMMENDATION:
· The McKinney Housing Finance Corporation (MHFC) passed an Inducement Resolution with respect to the Newsome Homes project at a regularly scheduled meeting on November 14, 2014.
· The McKinney Housing Finance Corporation (MHFC) does not object to the proposed project.