Title
Consider/Discuss/Act on a Resolution of the City Council of the City of McKinney, Texas, Showing Support for the Efforts of the McKinney Housing Finance Corporation to Partner with Skyway Villas (TX) Owner LP for the Acquisition and Rehabilitation of the Development known as the Skyway Villas Apartments
Summary
COUNCIL GOAL: Direction for Strategic and Economic Growth (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: April 21, 2026
DEPARTMENT: Housing and Community Development
CONTACT: Cristel Todd, Affordable Housing Administrator
Margaret Li, Housing and Community Development Director
RECOMMENDED CITY COUNCIL ACTION:
• N/A
ITEM SUMMARY:
• McKinney Housing Finance Corporation (MHFC) is seeking a resolution of support from the City Council of the City of McKinney regarding the proposed Acquisition and Rehabilitation of an existing affordable housing development named Skyway Villas Apartments:
o Located at 2000 Skyline Dr, McKinney, TX 75071
o Includes the construction of a new apartment complex with a total of 232 units, being a mixture two-, and three-bedroom units. The apartments will be comprised of 100% affordable units:
§ 60% AMI: 220 units (95% of total units)
§ 30% AMI: 12 units (5% of total units)
• MHFC will partner with Skyway Villas (TX) Owner LP in a public/private partnership and be the general partner.
• MHFC anticipates ad valorem tax exemption under Tex. Loc. Gov’t Code Chapter 394.
• Skyway Villas (TX) Owner LP will be the special limited partner, providing equity and securing financing.
• Skyway Villas (TX) Owner LP will invest approximately $22,000,000 in capital improvements to rehabilitate the property.
BACKGROUND INFORMATION:
• City Council approval is not required but shows the City’s support for the public/private partnership to provide affordable housing as presented by the project proposal.
• The City Council previously approved resolutions of support for three McKinney Housing Authority projects:
|
Project |
Tax Exemption |
Rent Savings |
MHA Benefit |
Public Benefit |
Benefit to Tax Ratio |
|
Magnolia Ranch |
$16,836,679 |
$12,563,923 |
$22,450,601 |
$35,014,524 |
208% |
|
Kinstead |
$16,523,399 |
$11,152,781 |
$15,858,129 |
$27,010,910 |
163% |
|
Jefferson Terry |
$11,568,953 |
$7,535,476 |
$12,157,446 |
$19,692,922 |
170% |
|
* Financial summary is based on a 10-year period ** Public Benefit includes Rent Savings and MHA Benefit *** Benefit to Tax Ratio is based on the amount of Public Benefit divided by the Tax Exemption |
FINANCIAL SUMMARY:
• The proposed partnership provides tax exemption for the property.
• The Skyway Villas Apartments are over 15-years old and Skyway Villas (TX) Owner LP will invest approximately $22,000,000 in capital improvements to rehabilitate the property.
• The McKinney Housing Finance Corporation is projected to generate revenue from the transaction, including an acquisition fee, annual compliance fees, lease payments and a disposition fee. The funds can be reinvested in future affordable housing initiatives.
|
Project |
Tax Exemption |
Rent Savings |
MHFC Benefit |
Public Benefit |
Benefit to Tax Ratio |
|
Skyway Villas |
$7,268,490 |
$514,270 |
$405,342 |
$919,612 |
13% |
|
* Financial summary is based on a 10-year period ** Public Benefit includes Rent Savings and MHA Benefit *** Benefit to Tax Ratio is based on the amount of Public Benefit divided by the Tax Exemption |
BOARD OR COMMISSION RECOMMENDATION:
• N/A