Title
Consider/Discuss/Act on a Resolution to Adopt an Updated Affordable Housing Scorecard
Summary
COUNCIL GOAL: Direction for Strategic & Economic Growth
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, Housing and Community Development Director
RECOMMENDED ACTION:
• Staff recommends to Approve the Resolution to Adopt the Updated Affordable Housing Scorecard to Provide a Uniform Metric for Evaluating Proposed Tax-exempt Rental Projects.
ITEM SUMMARY:
• Property tax exemptions have been used by the McKinney Housing Finance Corporation (MHFC), McKinney Housing Authority (MHA), and McKinney Public Facility Corporation (MPFC) as a strategy to provide more affordable housing units for the City’s residents. The City currently does not have a policy or a uniform metric for evaluating tax-exempt rental projects. The attached Affordable Housing Scorecard (“Scorecard”) provides a uniform metric for evaluating rental projects across all three granting entities to determine if they meet the City’s affordable housing goals.
• The proposed Scorecard was developed in collaboration with MHA and presented to the MCDC McKinney Front Porch group for input.
• The purpose of the Scorecard is to provide a uniform metric for evaluating tax-exempt rental projects based on the following criteria:
o Amount of Affordable Units
o Affordability Level
o Housing Type
o Rent Saving to Tax Exemption Ratio
o Granting Entity Benefit (One-Time)
o Granting Entity Benefit (Reoccurring)
o Location
o Project Type
• The scorecard provides an initial screening of rental projects seeking tax-exemptions and is not intended to provide a comprehensive analysis of the proposed tax-exempt rental project for approval. The proposed scorecard would be part of a two-step review process that includes an initial review to see if the minimum scorecard thresholds are met followed by a more detailed quantitative analysis of the benefits of the proposed tax-exempt rental project.
• The scorecard establishes minimum thresholds for rental projects to be considered for tax-exemption:
o Project must provide rental housing units (either single- or multi-family residential).
o Project must include at least 50% of the total units as affordable units (80% AMI or lower).
o Project must include a minimum of 10% of the total units at 30% AMI.
BACKGROUND INFORMATION:
• On February 18, 2025, City Council approved the initial Affordable Housing Scorecard.
• On March 14, 2025, MHFC approved the initial Affordable Housing Scorecard.
FINANCIAL SUMMARY:
• Texas Local Government Code Chapters 303, 392, and 394 enable municipalities, counties and certain other agencies to provide tax exemptions for projects that provide affordable housing without prior approval from the taxing entity.
• Granting entities providing tax exemptions are also able to receive financial benefits in the form of fees and lease payments. Revenue generated from these projects can be used to collaboratively support other affordable housing projects such as subsidized single-family housing or the development of Community Land Trust projects.
BOARD OR COMMISSION RECOMMENDATION:
• On September 17, 2026, staff presented the updated affordable housing scorecard to the Front Porch for feedback and input.
• On November 3, 2026, staff will present the updated affordable housing scorecard to City Council for feedback and input.