Title
Consider/Discuss/Act on a Resolution Authorizing the Use of Funds for the Local Gap Voucher Program on Behalf of the McKinney Public Facility Corporation
Summary
COUNCIL GOAL: 1B: Provide a strong city economy by implementing a Global Housing Strategy with a focus on affordable housing and facilitating a balance between industrial, commercial, residential, and open space.
MEETING DATE: May 20, 2025
DEPARTMENT: Department of Housing and Community Development
CONTACT: Cristel Todd, Affordable Housing Administrator
Margaret Li, Housing and Community Development Director
RECOMMENDED CITY COUNCIL ACTION:
• Approve Resolution
ITEM SUMMARY:
• The Housing and Community Development Department requests that $350,000 in Public Facility Corporation (PFC) funds be transferred to the Affordable Housing Fund 14 to administer a local gap voucher program, known as the McKinney Voucher Program (MVP), and other affordable housing projects.
• The anticipated cost for the MVP for FY 25-26 is $150,000, with $15,000 per year per household, allowing estimated assistance of 10 households annually.
• In FY24-25, the program served 8 households.
o All households served were elderly with income at or below 50% of the Area Median Income (AMI)
• These funds will provide the required 25% match for HOME funds received from HUD.
• We would like to request the full $350,000 remaining in the Community Grant Account be allocated the MVP program or affordable housing projects.
• All expenditures from these funds will contribute to future HOME fund matching requirements
BACKGROUND INFORMATION:
• Per the bylaws, funding received from McKinney Public Facility Corporation (MPFC) projects are allocated to the General Fund. The City Council has authority on how to use MPFC funding.
• The MPFC received $2,000,000 at the closing of the Jefferson Verdant project. $1,500,000 was provided as a loan for the Palladium multifamily project in June 2023. The project will pay $420,000 in annual rent upon completion.
• $150,000 was allocated to the MVP for FY24-25. $350,000 remains and is budgeted in the Community Grants Account.
FINANCIAL SUMMARY:
• Funds are currently budgeted in Account #: 001-9999-403-8559.
• There will be an accompanying budget amendment during the May 20, 2025, City Council meeting to transfer $350,000 from the general fund into the Affordable Housing Fund 14 to administer the program.
BOARD OR COMMISSION RECOMMENDATION:
• N/A