Title
Consider/Discuss/Act on a Resolution of the McKinney Public Facility Corporation of the City of McKinney, Texas, Approving the First Amended and Restated Bylaws of the McKinney Public Facility Corporation
Summary
COUNCIL GOAL: Goal #1.1: Provide a strong economy by implementing a global housing strategy and facilitating a balance between industrial, commercial, residential, and open space.
MEETING DATE: September 2, 2025
DEPARTMENT: Housing and Community Development
CONTACT: Cristel Todd, Affordable Housing Administrator
Margaret Li, Housing and Community Development Director
RECOMMENDED CITY COUNCIL ACTION:
• Approve Resolution
ITEM SUMMARY:
• The proposed amendment would amend the bylaws of the McKinney Public Finance Corporation (MPFC) to place fifty percent (50%) of the net revenue from any public facility related to multifamily residential development by the MPFC into the existing Community Housing Fund (Fund 14) for future appropriation by the City Council. The remaining fifty percent (50%) of the net revenues would continue to be placed in the General Fund for future appropriation by the City Council.
• The proposed amendment also includes other minor and non-substantive changes and corrections to the bylaws.
• Dedicating revenues from MPFC projects to Fund 14 will provide a dedicated funding source to further the Council’s affordable housing goals and projects. This could include the Fiscal Year 2025-26 strategic goal to “Develop at least 10 single-family homes and/or townhomes through the Community Land Trust by September 30, 2026,” and other projects or programs that address housing affordability.
BACKGROUND INFORMATION:
• The McKinney Public Facility Corporation (MPFC) is a non-profit corporation established pursuant to the Public Facility Corporation Act, Chapter 303, Texas Local Government Code.
• On June 21, 2022, the City Council adopted Resolution No. 2022-06-085 (R) to approve the form and substance of articles of incorporation and bylaws for the MPFC.
• The bylaws currently state that funding received from MPFC projects is allocated to the General Fund. The City Council has authority on how to use MPFC funding.
• On August 5, 2025, the City Council received a presentation on the proposed bylaw changes and expressed interest in potentially allocating fifty percent (50%) of the net revenues to Fund 14.
FINANCIAL SUMMARY:
• The MPFC received $2,000,000 at the closing of the Jefferson Verdant project; and will receive $420,000 annually in rent once the project has been completed.
• In June 2023, the MPFC provided a loan of $1,500,000 for the Palladium McKinney multifamily project located at 2656 Virginia Parkway. This loan will be repaid at the sale or transfer of the property or by June 30, 2043.
BOARD OR COMMISSION RECOMMENDATION:
• N/A