Title
Consider/Discuss/Act on Project #17-07, Submitted by McKinney Housing Authority, in the Amount of Five Hundred Thousand Dollars ($500,000) for Rehabilitation and Reconstruction and Expansion of Merritt McGowan Manor, a Sixty-Two Year Old, Low-Income, Multi-family Project Located on 10.205 Acres in McKinney; Majority of Project Costs Will be Funded Through a Tax Credit Award and Equity Loan; Amount Requested Represents 50% of Estimated Gap in Funding Needed for the Project
Summary
COUNCIL GOAL: Enhance the Quality of Life in McKinney
MEETING DATE: August 24, 2017
DEPARTMENT: McKinney Community Development Corporation
CONTACT: Cindy Schneible, President
ITEM SUMMARY:
• Merritt McGowan Manor is currently a multi-family project on 10.205 acres consisting of 86 units of 1-3 bedroom apartments, one community building and the McKinney Housing Authority Office.
• Constructed in the 1960’s, Merritt McGowan Manor has been maintained but has not received any major renovations since original construction.
• MHA has embarked on a long-term initiative to rehabilitate, reconstruct and/or expand the existing portfolio of affordable, multi-family properties.
• Merritt McGowan Manor is the second phase of this program, following the completion of Newsome Homes, and will add additional units for residents bringing the total to 136 one, two and three bedroom units.
• MHA is requesting a grant, in the amount of $500,000, from MCDC for the reconstruction and expansion of Merritt McGowan Manor.
BACKGROUND INFORMATION:
• Formed under Texas Local Government Code 392 and funded by the Department of Housing and Urban Development, the McKinney Housing Authority’s mission is to service the housing needs of low-income families to enhance self-sufficiency and promote quality of life in economic viability.
• The Housing Authority is regulated by the code of federal regulations and must meet compliance with Public Housing and Housing Choice Voucher guidance.
• The agency is governed by a five-member Board of Commissioners appointed by the City of McKinney.
FINANCIAL SUMMARY:
• Total estimated cost for the Merritt McGowan Manor project is $22,465,054.
• MHA anticipates the majority of funding ($21,563,454) will be derived from a tax credit award and equity loan.
• Additional funding sources include $1,500 in city waivers of inspection and permitting fees; $150,000 land lease note; and $250,000 deferred developer fees.
• MCDC has a balance of $1,132,683 available to award for discretionary project grants.