File #: 22-0570    Name: Creation of PFC
Type: Resolution Status: Approved
In control: City Council Regular Meeting
On agenda: 6/21/2022 Final action: 6/21/2022
Title: Consider/Discuss/Act on a Resolution Authorizing the Formation of the McKinney Public Facility Corporation; Approving the Form and Substance of Articles of Incorporation and Bylaws for the Corporation; Authorizing the Execution of Documents and Instruments necessary to Carry out the Purpose of this Resolution; and Containing other Provisions Relating Thereto
Attachments: 1. Resolution, 2. Articles of Incorporation, 3. Bylaws
Title
Consider/Discuss/Act on a Resolution Authorizing the Formation of the McKinney Public Facility Corporation; Approving the Form and Substance of Articles of Incorporation and Bylaws for the Corporation; Authorizing the Execution of Documents and Instruments necessary to Carry out the Purpose of this Resolution; and Containing other Provisions Relating Thereto
Summary

COUNCIL GOAL: Enhance the Quality of Life
5F: Maximize Partnerships between the City of McKinney and Private Industry

MEETING DATE: June 21, 2022

DEPARTMENT: Housing and Community Development

CONTACT: Janay Tieken, Director of Housing and Community Development
Cristel Todd, Affordable Housing Administrator

RECOMMENDED CITY COUNCIL ACTION:
* Approve Resolution Authorizing the Formation of The McKinney Public Facility Corporation; Approving the Form and Substance of Articles of Incorporation and Bylaws for the Corporation; Authorizing the Execution of Documents and Instruments necessary to Carry out the Purpose of this Resolution; and Containing other Provisions Relating Thereto.

ITEM SUMMARY:
* Chapter 303. Authorizes the creation and use Public Facility Corporations with possible powers to finance or to provide for the acquisition, construction, rehabilitation, renovation, repair, equipping, furnishing, and placement in service of public facilities.

* Primarily used for the development of mixed income/affordable housing development:
* 50% of the units reserved for families at or below 80% of the Area Median income (AM)
* 50% of the units at Market rate
* PFCs provide housing for the "missing middle" - the households not served by housing tax credit developments.

* The PFC model for financing affordable housing development is gaining popularity with developers due to less State oversight, higher profit margins and less competition for funding.


BACKGROUND INFORMATION:
* Public Facility Corporation Act was created in 1999.

FINANCIAL SUMMARY:
* The City of McKinney will recogn...

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