Title
Consider/Discuss/Act on Resolution Authorizing the Transfer and Assignment of McKinney Franklin Branch GP, LLC, the General Partner of the Franklin Branch Apartments, Ltd., the Partnership that will Own and Develop the Project; with the McKinney Housing Finance Corporation as Sole Member, and Approving the Form and Substance of the Respective Limited Liability Company Agreements; Authorizing the Execution of Documents and Instruments Necessary or Convenient to Carry out the Purposes of this Resolution; and Containing other Provisions Relating Thereto
Summary
COUNCIL GOAL: Goal #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: April 10, 2026
DEPARTMENT: Housing and Community Development
CONTACT: Cristel Todd, Affordable Housing Administrator
Margaret Li, Director of Housing and Community Development
RECOMMENDED BOARD ACTION:
• Approve Resolution.
ITEM SUMMARY:
• On December 13, 2024, NRP Holdings LLC (the “Developer”), was selected as the co-development partner for the McKinney Housing Finance Corporation (MHFC) Request for Qualifications (RFQ). The Developer is proposing a 100% affordable, 288-unit multifamily housing development to be located on an approximately 15.7-acre site on the southwest corner of FM1461 and Baxter Well Road known as the Franklin Branch Apartments (the “Project”).
• The proposed Resolution authorizes the MHFC to become the sole member of McKinney Franklin Branch GP, LLC, which serves as the General Partner (GP) for the project’s ownership entity. The Resolution also appoints the following MHFC representatives as officers:
o Tyler Underwood - President
o Lisa Emry - Vice President
o Ranjith Ranghunath - Treasurer
o Cristel Todd - Secretary
• The appointed officers have the authority to negotiate and execute all necessary financing documents, contracts, and instruments required to close the transaction.
• In addition, the resolution adopts and confirms all previous actions taken by the MHFC or the GP in relation to the development and bond issuance.
• The GP ownership structure is a standard requirement for housing finance transactions. The structure allows the Project to qualify for certain tax exemptions, including the 100% property tax abatement, which is essential for maintaining the project's long-term affordability.
BACKGROUND INFORMATION:
• On September 22, 2024, the MHFC issued an RFQ to select a qualified developer for a public private partnership deal. In response to all notices published, four submissions were received prior to the deadline of October 10, 2024. An evaluation team comprised of MHFC board members, City Council, and city staff reviewed and ranked the submissions based on the evaluation criteria listed within the RFQ.
• On December 13, 2024, MHFC approved NRP Holdings, LLC as the qualified developer and co-development partner.
FINANCIAL SUMMARY:
• The proposed Project is estimated to receive approximately $3,039,257 in ad valorem tax abatement over a 15-year period. In exchange, the MHFC is estimated to receive approximately $3,420,000 in guaranteed income over the same time period.