Title
Update on Community Land Trust
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: September 12, 2025
DEPARTMENT: Housing and Community Development Department
CONTACT: Cristel Todd, Affordable Housing Administrator
Margaret Li, Housing and Community Development Director
ITEM SUMMARY:
• This is an update to the MHFC regarding the rezone for the Community Land Trust (CLT). On August 19, 2025, the City Council approved the rezone of approximately 3.622 acres of land, generally for attached single family residential uses.
BACKGROUND INFORMATION:
• CLTs provide an opportunity to develop affordable housing units by separating the cost of land from the cost of homeownership. Residents can purchase the home (building only) at an affordable price and lease the land from the CLT. As a result, the resident can generate equity on the home; and if they sell are required to sell the home at a restricted price. The land is held by the CLT, in perpetuity, for affordable housing purposes.
• Staff is working towards the City Council Strategic Goals and evaluating options to develop property with affordable single family/townhomes for homeownership.
• The MHFC is a non-profit corporation established pursuant to the Texas Housing Finance Corporations Act, Tex. Loc. Gov’t Code Chapter 394, for the purpose of financing the cost of residential ownership and development for the benefit of the residents of the City of McKinney.
• On August 19, 2025, the City Council approved the rezone of approximately 3.622 acres of land, generally for attached single family residential uses.
• On July 22, 2025, the Planning and Zoning Commission voted 7-0-0 to recommend approval to the City Council for the request to generally rezone the property for attached single family residential uses.
• On May 6, 2025, the City Council adopted the Fiscal Year 2026 Strategic Goals and Department Objectives, which included:
o Develop at least 10 single-family homes and/or townhomes through the Community Land Trust by September 30, 2026.
o Allocate $1 million to the Community Land Trust for FY26 budget to support housing for households earning at or below 60% of the Area Median Income (AMI), completing the allocation by September 30, 2026.
• On May 21, 2024, the City Council approved a resolution designating the MHFC as a CLT, pursuant to Tex. Loc. Gov’t Code Chapter 373B, for the purpose of providing affordable housing for low-income and moderate-income residents in the community. In addition, the Council provided the MHFC with the authority to acquire eligible properties in its role as a community land trust without the prior approval of the City Council.
• Next step is for City Council to convey the land to the MHFC and for staff to release a RFP to select a developer to work with for the townhome development.
FINANCIAL SUMMARY:
• On August 2, 2022, the City Council appropriated $1,000,000 from the General Fund to provide funding support to qualified and approved CLTs.
BOARD OR COMMISSION RECOMMENDATION:
• N/A