Title
Consider/Discuss/Act on a Resolution of the McKinney Housing Finance Corporation Authorizing the Submission of Applications for Allocation of Private Activity Bonds to the Texas Bond Review Board and Declaration of Expectation to Reimburse Expenditures with Proceeds of Future Debt for the Torrington Terry Apartments Project
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: October 9, 2026
DEPARTMENT: Housing and Community Development
CONTACT: Cristel Todd, Affordable Housing Administrator
Margaret Li, Director of Housing and Community Development
RECOMMENDED BOARD ACTION:
• Staff recommends that the McKinney Housing Finance Corporation (MHFC) Board approve the proposed Resolution authorizing the submission of applications for allocation of private activity bonds for the Torrington Terry Apartments.
ITEM SUMMARY:
• The proposed Resolution authorizes the submission of the Allocation or Carryforward of Private Activity Bonds applications for Program Year 2027 or 2028 to the Texas Bond Review Board for the acquisition, construction, and equipping of a qualified residential rental development located at 4025 W University Dr, McKinney, TX 75071 (known as the Torrington Terry Apartments).
• The tax-exempt bonds are not to exceed a principal amount of $80,000,000.
• Proceeds will be loaned to Torrington Terry, LP or an affiliate of JPI Affordable Development, LLC.
• The Resolution declares the Corporation’s official intent to reimburse the borrower for capital expenditures from bond proceeds, as required by Treas. Reg. § 1.150-2; and ensure the borrower’s ability to use tax-exempt financing for project-related costs incurred prior to bond issuance
• The development will include the development of 394 units with 100% of the units being offered at the following affordable rates:
|
Affordability Level |
Number of Units |
Percentage of Total Units |
|
70% AMI |
38 |
10% |
|
60% AMI |
335 |
85% |
|
30% AMI |
21 |
5% |
|
Total |
394 units |
100% |
BACKGROUND INFORMATION:
• On February 18, 2025, the City Council approved the Affordable Housing Scorecard to provide a uniform metric to evaluate tax exempt projects. Utilizing the Affordable Housing Scorecard, the Torrington Terry Apartments project scored 19 points (which exceeds the 12-point minimum required for consideration).
• On September 15, 2026, the City Council approved a Resolution supporting the efforts of the MHFC to partner on the new construction and development of the Torrington Terry Apartments project.
FINANCIAL SUMMARY:
• Development of the Torrington Terry Apartments is estimated to cost $79,286,085.
• The proposed partnership between Torrington Terry, LP and MHFC will provide the project with approximately $20,334,054 in property tax exemptions over a 10-year period.
• Negotiations on the final partnership fees have not been completed. However, the MHFC is projected to receive a minimum of $2,857,592 in revenues from the partnership, including a construction fee, annual compliance fees, lease payments, and a disposition fee over a 10-year period. The funds can be reinvested in future affordable housing initiatives.
• In addition, the Torrington Terry Apartments project is anticipated to provide approximately $6,032,916 in rent savings for future residents over a 10-year period.
|
Project |
Tax Exemption |
Rent Savings |
MHFC Benefit |
Public Benefit |
Benefit to Tax Ratio |
|
Torrington Terry |
$20,334,054 |
$6,032,916 |
$2,857,592 |
$8,890,508 |
43.7% |
|
* Financial summary is based on a 10-year period ** Public Benefit includes Rent Savings and MHFC Benefit *** Benefit to Tax Ratio is based on the amount of Public Benefit divided by the Tax Exemption |