Title
Consider/Discuss the Updated Affordable Housing Scorecard
Summary
COUNCIL GOAL: Direction for Strategic & Economic Growth
1.1: Provide a strong economy by creating a Global Housing Strategy and facilitating a balance between industrial, commercial, residential, and open space.
MEETING DATE: November 3, 2026
DEPARTMENT: Housing and Community Development
CONTACT: Cristel Todd, Affordable Housing Administrator
Margaret Li, Housing and Community Development Director
RECOMMENDED ACTION:
• Staff recommends the City Council consider/discuss proposed updates to the Affordable Housing Scorecard.
ITEM SUMMARY:
• Property tax exemptions have been used by the McKinney Housing Finance Corporation (MHFC), McKinney Housing Authority (MHA), and McKinney Public Facility Corporation (MPFC) as a strategy to provide more affordable housing units for the City’s residents. The Affordable Housing Scorecard (“Scorecard”) provides a uniform metric that can be used across all three granting entities when considering affordable housing developments seeking tax exemptions/partnerships. Using the Scorecard helps to ensure partner projects meet the shared affordable housing goals of the city.
• In collaboration with MHA and the McKinney Front Porch group, Staff has reviewed and updated certain criteria in the Scorecard. The proposed updates aim to incorporate new state legislation from House Bill 21 (89th Session), policies in the Texas Department of Housing and Community Affair’s 2026 Qualified Allocation Plan, and the prioritization of single family residential developments as partnership projects.
• In an associated item on tonight’s regular agenda, Staff requests Council consideration and action on the proposed changes.
BACKGROUND INFORMATION:
• On February 18, 2025, City Council approved the initial Affordable Housing Scorecard. On March 14, 2025, MHFC approved the initial Affordable Housing Scorecard.
• The Scorecard is part of a two-step review process that includes an initial review to see if the minimum Scorecard thresholds are met followed by a more detailed quantitative analysis of the benefits of the proposed tax-exempt housing project.
• Since adoption, the following tax exemption partnership projects have been presented to the City Council for consideration:
|
Project |
Total Units |
Affordability |
|
Cotton Mill Phase 1 |
257 |
129 (50%) |
|
Franklin Branch |
288 |
288 (100%) |
|
Skyway Villas |
233 |
233 (100%) |
|
Torrington Terry |
394 |
394 (100%) |
FINANCIAL SUMMARY:
• Texas Local Government Code Chapters 303, 392, and 394 enable municipalities, counties and certain other agencies to provide tax exemptions for projects that provide affordable housing without prior approval from the taxing entity.
• Granting entities providing tax exemptions are also able to receive financial benefits in the form of fees and lease payments. Revenue generated from these projects can be used to collaboratively support other affordable housing projects such as subsidized single-family housing or the development of Community Land Trust projects.
BOARD OR COMMISSION RECOMMENDATION:
• On September 17, 2026, staff presented the updated Scorecard to the Front Porch for feedback and input.
• On October 9, 2026, MHFC reviewed and approved the updated Scorecard.