Title
Consider/Discuss/Act on Proposed 2021 McKinney HFC MCC/DPA Program
Summary
ITEM SUMMARY:
* Prior Program (2016) Statistics:
o Private Activity Cap Used - $6,622,340
o Maximum Mortgage Loans Assisted - $4,138,963
o Dollar Amount of Mortgage Loans Assisted - $438,903
o Number of Mortgagors Assisted - 2
o Average Size of Mortgage Loan - $219,452
o Utilization Percentage for Program - 10.604%
* Proposed (2021) Program Structure:
o Maximum Private Activity Cap - $26,489,360
* No utilization restriction on PAB cap after July 14th
o Private Activity Cap Proposed - $10,000,000
o Maximum Mortgage Loans Assisted - $ 8,333,333
o Estimated Number of Mortgagors Assisted - 25
o Estimated Average Size of Mortgage Loan - $325,000
* Down Payment Assistance Options:
o TDHCA - up to 4% of mortgage loan amount - 2nd Lien
o TSAHC - Up to 5% of mortgage loan amount - Grant or forgivable 2nd lien
o McKinney Proposed - $10,000 structured as a 2nd lien repayable - the board can determine if this amount needs to be adjusted over time. If 25 loans are funded, MHFC amount funded $250,000
* MCC Credit Percentage:
o TDHCA - 30% for Mortgages up to $175K & 20% for Mortgages above $175K
o TSAHC - 20%
o McKinney HFC -30% - of the mortgage interest paid with a $2,000 annual cap
???????* TDHCA & TSAHC Fees:
o TSAHC Fees:
* $200 Compliance Review Fee
* $500 Issuance Fee
o TDHCA Fees:
* $275 Compliance Review Fee
* $400 Issuance Fee (varies)
????* Cost of Implementing the Program:
o App Fee - $500
o 35-day Filing Fee - $416.67 & 2/3 Closing Fee - $833.33
o Program Administrator Fee - $250/per file
o Professional Fees to each Legal Counsel & Financial Advisor
* Total Fee = $25,000 each
* Professional Fee Payment Options:
? (1) Total Fee paid at closing
? (2) 1/2 ($12,500) paid at closing, 1/2 paid on a deferred basis.
o For every loan that closes, $1,250 paid to each professional until the remaining fee ($12,500) has been paid in full.
? (3) Open for discussion on other options
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