Title
Consider/Discuss/Act on a Resolution Authorizing the Transfer and Assignment of McKinney Skyway Villas GP, LLC, the General Partner of the Skyway Villas (TX) Owner LP, 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: July 24, 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:
• The proposed Resolution authorizes the McKinney Housing Finance Corporation (MHFC) to become the sole member of McKinney Skyway Villas 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 Raghunath - 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 April 21, 2026, the City Council approved a Resolution of Support for the proposed acquisition and rehabilitation of the existing affordable housing development known as Skyway Villas.
• On September 12, 2025, the MHFC board approved the submission of an application for allocation of Private Activity Bonds for the Skyway Villas Project in an aggregate amount not to exceed $52,000,000.
• Skyway Villas is an existing affordable housing project that originally received Low Income Housing Tax Credits (LIHTC) in 2003. The existing compliance period concluded in 2018, this new application will successfully preserve and extend the property’s affordability restrictions for an additional thirty (30) years.
FINANCIAL SUMMARY:
• The proposed partnership will provide Skyway Villas (TX) Owner LP with approximately $7.2 million in property tax exemptions (approximately $1.1 million in McKinney property tax exemptions) over 10 years.
• The MHFC is projected to receive approximately $3,189,892 in fee revenues from the public private partnership, over a period of 15 years.
o Developer Fee split: 25% allocated to the MHFC, totaling $2,428,236
o Partnership Management Fee: $35,000 plus 3% annually- estimated at $761,656
o Residuals: 40% of ongoing net cash flow and future sale or refinancing proceeds.
• In addition, the apartment complex is anticipated to receive $22 million in capital improvements and generate approximately $405,270 in rent savings over a period of 10-years.