Title
Consider/Discuss Potential Bylaw Changes to the McKinney Public Facility Corporation (MPFC)
Summary
COUNCIL GOAL: Goal #1.1: Provide a strong economy by implementing a global housing strategy and facilitating a balance between industrial, commercial, residential, and open space.
MEETING DATE: August 5, 2025
DEPARTMENT: Housing and Community Development
CONTACT: Cristel Todd, Affordable Housing Administrator
Margaret Li, Housing and Community Development Director
RECOMMENDED CITY COUNCIL ACTION:
• Receive and File Presentation
ITEM SUMMARY:
• This item is to consider/discuss possible amendments to the MPFC bylaws that would maximize MPFC revenues for affordable housing programs/projects. Specifically, the possible amendments would place net revenue from any public facility for multifamily residential development by the MPFC into the city’s Affordable Housing Fund (Fund 14). Funding received from MPFC projects are currently allocated to the city’s General Fund.
• Dedicating revenues from MPFC projects to Fund 14 will provide a dedicated funding source to further the Council’s strategic goal of supporting and developing more affordable housing units under programs of the city (i.e. Community Land Trust).
BACKGROUND INFORMATION:
• On June 21, 2022, the City Council adopted Resolution No. 2022-06-085 (R) to approve the form and substance of articles of incorporation and bylaws for the MPFC.
• The McKinney Public Facility Corporation (MPFC) is a non-profit corporation established pursuant to the Public Facility Corporation Act, Chapter 303, Texas Local Government Code and can provide affordable housing projects with property and sales/use tax exemptions.
o Acquisition Projects - 30 years of tax exemptions
o Development Projects - 60 years of tax exemptions
• Since the inception of the MPFC, the Texas Local Government Code has been modified to require MPFC projects to meet the following criteria:
o Acquisition, construction, rehabilitation, renovation, repair, equipping, furnishing, and placement in service of public facilities
o Multifamily Residential Developments must include at least
§ 10% of the units reserved for 60% AMI (lower income); and
§ 40% of the units reserved for 80% AMI (moderate income)
o Acquired Occupied Multifamily Residential Development must include at least
§ 25% of the units reserved for 60% AMI (lower income); and
§ Not less than 15% of the total gross cost of the existing development is spent on rehabilitation/reconstruction
• As a result of the state law changes, developers have been more inclined to seek partnerships with housing finance corporations and housing authorities which have lower affordability thresholds.
FINANCIAL SUMMARY:
• On November 15, 2022, the City Council authorized an agreement between the MPFC and JPI Hardin Development, LLC for the development of the Jefferson Verdant multifamily housing development; which included 384 units. In return, the MPFC would be paid at closing, stabilization, and at sales events per the terms in the agreement.
• The MPFC received $2,000,000 at the closing of the Jefferson Verdant project; and subsequently $1,500,000 was provided as a loan for the Palladium multifamily project in June 2023. Upon completion of Jefferson Verdant, Jefferson Verdant will pay $420,000 annually in rent.
BOARD OR COMMISSION RECOMMENDATION:
• The proposed amendment will be presented to the MPFC at the September 2, 2025 meeting.