Title
Consider/Discuss/Act on a Resolution Approving Assignment of Private Activity Bond Authority to the Texas Department of Housing and Community Affairs; and Containing Other Provisions Relating to the Subject
Summary
COUNCIL GOAL: Enhance the Quality of Life
MEETING DATE: August 6, 2024
DEPARTMENT: Housing and Community Development
CONTACT: Cristel Todd, Interim Director of Housing and Community Development
RECOMMENDED CITY COUNCIL ACTION:
• Approve Resolution Authorizing Assignment of Private Activity Bond Authority to the Texas Department of Housing and Community Affairs; and Containing Other Provisions Relating to the Subject
ITEM SUMMARY:
• The McKinney Housing Finance Corporation (MHFC) will apply for and secure Private Activity Bond (PAB) volume cap allocation.
• Upon issuance of the PABs, the MHFC will assign that authority to the Texas Department of Housing and Community Affairs (TDHCA).
• TDHCA will administer tax-exempt bonds and Mortgage Credit Certificates (MCCs) on behalf of the MHFC.
• TDHCA will provide qualified homebuyers with below-market mortgages or MCCs through their network of approved lenders.
• TDHCA will manage all reporting and compliance requirements for the program.
• Borrowers will have access to TDHCA's down payment assistance program, with potential for additional DPA funds from the MHFC used for 1st time homebuyers.
BACKGROUND INFORMATION:
• On June 9, 2023, the City Council approved the assignment of private activity bonds authority to TDHCA, and that funding has been fully utilized.
FINANCIAL SUMMARY:
• The MHFC will receive an ongoing fee (4.75 basis points) on all loans originated within the City of McKinney.
BOARD OR COMMISSION RECOMMENDATION:
• MHFC Board approved at the June 14, 2024, board meeting