Title
Update on Community Land Trust
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: July 15, 2025
DEPARTMENT: Housing and Community Development Department
CONTACT: Cristel Todd, Affordable Housing Administrator
Margaret Li, Housing and Community Development Director
RECOMMENDED CITY COUNCIL ACTION:
• Receive and File presentation.
ITEM SUMMARY:
• Community Land Trusts (CLT) provide an opportunity to develop affordable housing units by maintaining ownership of the land. Residents are then able to purchase the home (building only) at an affordable price and lease the land from the CLT. As a result the resident is able to generate equity on the home and if they sell are required to sell the home at a restricted price. The land is held in perpetuity by the CLT for affordable housing purposes.
• On May 21, 2024, the City Council adopted the Fiscal Year 2025 Strategic Goals which included:
o Purchase two (2) infill lots to be used for affordable single-family housing, completing both purchases by September 30, 2025
o Develop Policies and Procedures for the Community Land Trust, purchase land, and identify nonprofit development partners, by September 30, 2025.
• Staff is working towards the City Council Strategic Goals and evaluating options to develop property with affordable single family/townhomes for homeownership.
BACKGROUND INFORMATION:
• According to the McKinney Housing Needs Assessment (Root Policy Research), updated in September 2023, 46% of McKinney renters were cost burdened; and there is a rental gap of 5,145 units for households earning less than $35,000 a year.
• The MHFC is a non-profit corporation established pursuant to the Texas Housing Finance Corporations Act, Tex. Loc. Gov’t Code Chapter 394, for the purpose of financing the cost of residential ownership and development for the benefit of the residents of the City of McKinney.
• On May 21, 2024, the City Council approved a resolution designating the MHFC as a CLT, pursuant to Tex. Loc. Gov’t Code Chapter 373B, for the purpose of providing affordable housing for low-income and moderate-income residents in the community. In addition, the Council provided the MHFC with the authority to acquire eligible properties in its role as a community land trust without the prior approval of the City Council.
• On May 6, 2025, the City Council adopted the Fiscal Year 2026 Strategic Goals and Department Objectives, which included:
o Develop at least 10 single-family homes and/or townhomes through the Community Land Trust by September 30, 2026.
o Allocate $1 million to the Community Land Trust for FY26 budget to support housing for households earning at or below 60% of the Area Median Income (AMI), completing the allocation by September 30, 2026.
FINANCIAL SUMMARY:
• On August 2, 2022, the City Council appropriated $1,000,000 from the General Fund to provide funding support to qualified and approved CLTs.
BOARD OR COMMISSION RECOMMENDATION:
• N/A