Title
Conduct a Public Hearing to Consider/Discuss/Act on a Resolution of the City Council of the City of McKinney, Texas, Regarding the Application of the “380 Villas” to the Texas Department of Housing and Community Affairs (TDHCA), for 4% Tax Credits for the Construction of Multi-Family Units Within the Development
Summary
COUNCIL GOAL: Enhance the Quality of Life Within McKinney
5E: Develop Sustainable Quality of Life Improvements within the City of McKinney
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:
• Approve one of the Resolutions
ITEM SUMMARY:
• SDC Throckmorton Villas, LP has applied to TDHCA for 4% tax credits for the construction of 380 Villas.
• SDC Throckmorton Villas, LP is requesting a Resolution of No Objection from the City Council.
BACKGROUND INFORMATION:
• SDC is a Dallas-based real estate development company committed to affordable housing provision, with specialization in Low Income Housing Tax Credit (LIHTC) products under Section 42 of the Internal Revenue Code, leveraging over 30 years of consultation, appraisal, and development experience.
• The development plan calls for eight buildings (three of which will be finished as townhome style apartments), club house, and approximately 12,000 SF of retail space to be constructed on +/‐ 14.1 acres. 100% of the units will be available to families earning 60% or less of the area median income.
• The development site is located at 820 E. University Drive, McKinney, TX 75069, on the southwest quadrant of Highway 380 and Throckmorton Street.
• The new facility will have a club house, fitness center, swimming pool, business center with computers and Internet access, community room with full kitchen, BBQ/picnic area, children’s playground and library.
• On December 5, 2017, City Council approved the zoning for the project. The developer is currently working with City staff to ensure that the current site plan meets the requirements of the approved PD.
• An updated “Hold Harmless” agreement has been executed.
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.
BOARD OR COMMISSION RECOMMENDATION: N/A