Title
Consider/Discuss/Act on a Resolution of The McKinney Housing Finance Corporation, as Sole Member of McKinney Skyway Villas Holdings, LLC, Authorizing the Acquisition of Real Property and Execution and Delivery of Ground Lease Documents in Connection with the Financing, Rehabilitation and Operation of a Multifamily Housing Development Know as “Skyway Villas”
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, Director of Housing and Community Development
RECOMMENDED BOARD ACTION:
• Approve Resolution.
ITEM SUMMARY:
• The proposed Resolution authorizes the McKinney Housing Finance Corporation (MHFC) as the sole-member subsidiary (McKinney Skyway Villas Holdings, LLC) to buy land and lease it back to the developer (Skyway Villas (TX) Owner LP) for 99 years to undergo a comprehensive rehabilitation and preserve and extend the property as an affordable housing project.
• In addition, the Resolution appoints the following MHFC representatives as officers to manage the Ground Lessor’s affairs:
o Tyler Underwood - President
o Lisa Emry - Vice President
• The appointed officers are empowered and authorized to execute the Ground Lease and all related transactional documents.
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 known as Skyway Villas.
• On September 12, 2025, the MHFC board approved the submission of an application for allocation of Private Activity Bonds for the Skyway Villas Project in an aggregate amount not to exceed $52,000,000.
• 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 (approximately $1.1 million in McKinney property tax exemptions) over 10 years.
• The MHFC is projected to receive approximately $3,189,892 in fee revenues from the public private partnership, 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.