Title
Consider/Discuss/Act on a Resolution Authorizing the Formation of McKinney Skyway Villas Development, LLC, (“The Co-Developer”) in Connection with The McKinney Housing Finance Corporation Multifamily Housing Revenue Bonds (Skyway Villas), Series 2026; Authorizing the Designation of the Corporation as the Sole Member of the Co-Developer; Approving the Form and Substance of a Limited Liability Company Agreement and the Execution Thereof; Ratifying Certain Actions Heretofore Taken in Connection with the Co-Developer; 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 legal creation of the McKinney Skyway Villas Development, Limited Liability Company (LLC), which will serve as the Co-Developer for the Skyway Villas Apartments.
• The Resolution designates the McKinney Housing Finance Corporation (MHFC, the “Corporation”) as the sole member of this new Co-Developer entity and approves the form and substance of the LLC Agreement, providing the legal framework for the entity's operations. As the Sole Member of the Co-Developer entity, the Corporation maintains direct involvement and oversight during the critical acquisition, construction, and leasing phases of the project.
• Creating a distinct LLC for development activities is a standard industry practice that provides an additional layer of legal and financial protection for the MHFC while fulfilling its mission.
• In addition, the Resolution authorizes the Co-Developer to enter into a formal Development Agreement with the Borrower to oversee the acquisition, owning, leasing and management of the project. 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 are empowered to negotiate and execute all necessary contracts, financing statements, and instruments required to fulfill the Co-Developer’s obligations.
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.