Title
Consider/Discuss/Act on a Resolution Approving the Request for Qualifications for Future Affordable Housing Development Utilizing Public Private Partnership with the McKinney Housing Finance Corporation
Summary
COUNCIL GOAL: Enhance the Quality of Life in McKinney
5F: Maximize Partnerships between the City of McKinney and Private Industry
MEETING DATE: September 17, 2024
DEPARTMENT: Housing and Community Development
CONTACT: Cristel Todd, Affordable Housing Administrator
Margaret Li, Director of Housing and Community Development
RECOMMENDED CITY COUNCIL ACTION:
• Approve the Request for Qualifications (RFQ) for future affordable housing development utilizing partnership with McKinney Housing Finance Corporation (MHFC)
ITEM SUMMARY:
• Request for Qualifications (RFQ) for future affordable housing development, utilizing public private partnership with the McKinney Housing Finance Corporation
• This RFQ differs from the 2022 RFQ in two ways:
o It does not permit consideration for Public Facilities Corporations (PFC’s).
o It does permit consideration for Acquisition/Rehabilitation of existing Multifamily that is 15+ years.
• Section 394.001 of the Texas Local Government Code allows Housing Finance Corporations to partner with private developers in the creation of affordable or mixed-income developments
• Housing Finance Corporations receive financial benefit from the partnership from the project by sharing in the project cash flow and development fee
• Project proceeds may be used to meet City of McKinney affordable housing needs
BACKGROUND INFORMATION:
• The last RFQ was issued in 2022
o Public Facilities Corporation (PFC) Deal - Jefferson Verdant - 384 units - under construction
o MHFC Co-Development Deal - Palladium - 172 units - under construction
• Based on the success of the prior partnerships and the Council priority to further workforce and affordable housing, an RFQ for future development has been prepared.
FINANCIAL SUMMARY:
• The McKinney Housing Finance Corporation will recognize financial gain from the transaction as a percentage of the developer fee and cash flow. These amounts will be negotiated by McKinney Housing Finance Corporation financial counsel
BOARD OR COMMISSION RECOMMENDATION:
• The McKinney Housing Finance Corporation (MHFC) voted on September 13, 2024, to approve and recommend the attached Request for Qualifications (RFQ) for future housing development utilizing a public/private partnership with the McKinney Housing Finance Corporation (MHFC)