Title
Conduct a Public Hearing to Consider/Discuss/Act on a Resolution of the City Council of the City of McKinney, Texas, Regarding the Application of Skyway Villas (TX) Owner LP, to the Texas Department of Housing and Community Affairs, for a 4% Housing Tax Credit for the Acquisition and Rehabilitation of an Existing Housing Development Known as “Skyway Villas Apartments”
Summary
COUNCIL GOAL: Direction for Strategic and Economic Growth (1B: Provide a strong city economy by implementing a Global Housing Strategy with a focus on affordable housing and facilitating a balance between industrial, commercial, residential, and open space)
MEETING DATE: July 21, 2026
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 Project Site is located at 2000 Skyline Drive, McKinney, TX, 75071; and includes the acquisition and rehabilitation of 232 affordable housing units. The apartment complex includes a mix of two and three-bedroom units and will be 100% affordable:
o 60% AMI: 220 Units (95% of the total units)
o 30% AMI: 12 units (5% of the total units)
• The McKinney Housing Finance Corporation (MHFC) will parter with Skyway Villas (TX) Owner LP in a public/private partnership; be the general parter; and provide the project with ad valorem tax exemption under Tex. Loc. Gov’t Code Chapter 394.
• Skyway Villas (TX) Owner LP will be the special limited partner, providing equity and securing financing; including approximately $22 million in capital improvements to rehabilitate the property.
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.
• September 12, 2025, the MHFC board approved the submission of application for allocation for Private Activity Bonds for the Skyway Villas Project in the maximum amount of $46,000,000.
• 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.
• The MHFC is projected to receive approximately $3,189,892 in revenue, 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.
BOARD OR COMMISSION RECOMMENDATION:
• July 24, 2026: The MHFC will convene a Special Meeting to approve a Memorandum of Understanding with Skyway Villas (TX) Owner LP.