Title
Consider/Discuss/Act on Request for Qualifications for Future Affordable Housing Development Utilizing Public Private Partnership with the McKinney Housing Finance Corporation
Summary
COUNCIL GOAL: Financially Sound Government
4A: Provide funding and organizational framework to ensure continual economic improvements
MEETING DATE: October 2, 2018
DEPARTMENT: Housing and Community Development
CONTACT: Cristel Todd, Affordable Housing Administrator
RECOMMENDED CITY COUNCIL ACTION:
• Approve McKinney Housing Finance Corporation (MHFC) recommendation for Request for Qualifications (RFQ) for future affordable housing development utilizing partnership with McKinney Housing Finance Corporation (MHFC)
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:
• On September 18, 2017, City Council discussed the ability of the McKinney Housing Finance Corporation to enter into co-developer agreements with private affordable housing developers
• City Council supported a competitive Request For Qualifications (RFQ) process for the selection of the private developer
• On September 29, 2017, the MHFC recommended moving forward with the competitive RFQ process for selecting a co-developer for the FY19 funding cycle
• The MHFC recommends the attached RFQ for future affordable housing development utilizing public/private partnerships
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
BOARD OR COMMISSION RECOMMENDATION:
• The McKinney Housing Finance Corporation (MHFC) voted on September 14, 2018, to recommend the attached Request for Qualifications (RFQ) for future housing development utilizing a public/private partnership with the McKinney Housing Finance Corporation (MHFC)