Title
Consider/Discuss/Act on a Request for Qualifications for Future Affordable Housing Development Utilizing Public Private Partnership with the McKinney Housing Finance Corporation
Summary
ITEM SUMMARY:
• Section 394.001 of the Texas Local Government Code allows Housing Finance Corporations to partner with private developers in the creation of affordable or mixed-income developments
• Housing Finance Corporations receive financial benefit from the partnership from the project by sharing in the project cash flow and development fee
• Project proceeds may be used to meet City of McKinney affordable housing needs
BACKGROUND INFORMATION:
• June 14, 2022, Grand Opening of Independence - 204 units
• July 2020, Group breaking of Independence
• June 27, 2019, MHFC approved the Memorandum of Understanding (MOU) for a MF Partnership with NRP Holdings, LLC
• January 15, 2019, City Council was updated on the process and selection of NRP Holdings, LLC
• January 11, 2019, MHFC was updated on the selection of NRP Holdings, LLC by the subcommittee
• October 2, 2018, City Council approved a Request for Qualifications (RFQ) process for the selection of the private developer
• September 14, 2018, MHFC approved and recommended the RFQ to City Council for approval
FINANCIAL SUMMARY:
• The McKinney Housing Finance Corporation will recognize financial gain from the transaction as a percentage of the developer fee and cash flow. These amounts will be negotiated by McKinney Housing Finance Corporation financial counsel