Title
Conduct a Public Hearing to Consider/Discuss/Act on a Resolution of the City Council of the City of McKinney, Texas, to Allow the Proposed Development, Sphinx at 380 Villas, Located at 820 E. University Drive to Add Tax Credit Units in a Census Tract Containing Existing Tax Credit Units that Exceeds 20% of Total Households
Summary
COUNCIL GOAL: Direction for Strategic and Economic Growth
1C: Provide a strong city economy by implementing a Global Housing Strategy with a focus on affordable housing and facilitating a balance between industrial, commercial, residential and open space
MEETING DATE: April 19, 2022
DEPARTMENT: Housing & Community Development Department
CONTACT: Janay Tieken, Housing and Community Development
Cristel Todd, Affordable Housing Administrator
RECOMMENDED CITY COUNCIL ACTION:
• Consider/Discuss/Act on Resolution
ITEM SUMMARY:
• SDC Throckmorton Villas, LP has applied to TDHCA for 4% tax credits for the construction of 380 Villas.
• The proposed development, 380 Villas, is located at 820 E. University Drive, in census tract 48085030900 which has more than 20% Housing Tax Credit (HTC) Units per Households. To continue its consideration of tax credits to the applicant, TDHCA requires that the Governing Body votes specifically to allow the proposed development to increase the amount of tax credit units in the affected census tract.
• Housing Tax Credit units make up 34.35% of all households in census tract 48085030900.
• In addition and as a condition of its consideration of tax credits to the applicant, TDHCA requires the Governing Body to affirm, via this Resolution, that the proposed development is consistent with the jurisdiction’s obligation to affirmatively further fair housing.
BACKGROUND INFORMATION:
• The proposed mixed use development consists of 220 units which will be affordable to families earning no more than 60% of the Area Median Income. There will be 13,604 square feet of commercial/retail space on the site.
• On December 5, 2017, City Council approved the zoning for the project. On April 3, 2018, a similar project in the same location received a Resolution of Opposition and was denied the Resolution for the greater than 20% of tax credit units to household units
FINANCIAL SUMMARY:
• The estimated total cost of the project is approximately $52.75 million. Tax credits make up approximately $35 million, $4 million multifamily direct loan through TDHCA, with private equity and deferred developer fee providing the remaining $13.75 million.
• The developer is not asking for any additional contribution or fee waivers from the City at this time.
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BOARD OR COMMISSION RECOMMENDATION: N/A