Title
Consider/Discuss/Act on a Resolution Authorizing the McKinney Housing Finance Corporation to File an Application for Reservation with the Texas Bond Review Board with Respect to Qualified Mortgage Bonds or Mortgage Credit Certificates; and Containing other Provisions Relating to the Subject Property
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: July 24, 2026
DEPARTMENT: Housing and Community Development
CONTACT: Cristel Todd, Affordable Housing Administrator
Margaret Li, Housing and Community Development Director
RECOMMENDED BOARD ACTION:
• Approve Resolution.
ITEM SUMMARY:
• The proposed Resolution authorizes the filing of an Application for Reservation with the Texas Bond Review Board (BRB) to secure up to $6,000,000 in state volume cap allocation for single-family housing initiatives.
• The Application secures the necessary tax-exempt "volume cap" allocation required under federal and state law to issue low-interest Qualified Mortgage Bonds (QMBs) or to establish a Mortgage Credit Certificate (MCC) program to support low-to-moderate-income homebuyers in McKinney.
• Authorizes the Texas Department of Housing and Community Affairs (TDHCA) to pay the necessary application fee ($500), carryforward fees, and closing fees on behalf of the McKinney Housing Finance Corporation (MHFC).
• The MHFC’s governing body will be required to approve the Assignment.
BACKGROUND INFORMATION:
• TDHCA appreciates its continued partnership with MHFC. Since inception, MHFC has assigned approximately $10,000,000 in PAB Volume Cap to TDHCA.
• As of March 31, 2026, approximately 62.13% of these funds have been utilized to provide below-market mortgage loans and Mortgage Credit Certificates to first-time homebuyers within City of McKinney. Demand for these programs has increased significantly over the past year.
FINANCIAL SUMMARY:
• TDHCA will pay an ongoing fee of 4.75 basis points against the aggregate outstanding balance of MHFC Loans that have been pooled into mortgage-backed securities or for which an MCC has been issued.
• The MHFC Fees will be paid for a period of ten years for each loan originated under the Assignment Agreement, that is not more than 30-days delinquent at the time the Pooled Loan Fee is calculated.