Title
Consider/Discuss/Act on Approving NRP Lone Star Development, LLC as the Qualified Developer selected from the Request for Qualifications for Future Affordable Housing Development Utilizing Public Private Partnership with the McKinney Housing Finance Corporation
Summary
COUNCIL GOAL: Direction for Strategic and Economic Growth
1A: Provide a strong economy by creating a Global Housing Strategy and facilitating a balance between industrial, commercial, residential and open space
MEETING DATE: December 13, 2024
DEPARTMENT: Housing and Community Development
CONTACT: Cristel Todd, Affordable Housing Administrator
ITEM SUMMARY:
• On behalf of the McKinney Housing Finance Corporation (MHFC), the City issued a request for qualifications (25-04RFQ) seeking an experienced real estate developer (the "Co-Developer") to maximize the resources available for affordable housing purposes within the City of McKinney.
• The RFQ was issued on September 22, 2024.
o Advertised in McKinney Courier Gazette
o Posted on McKinney TV
o Posted on City of McKinney Website
• In response to all notices published, four (4) submissions were received prior to the deadline of October 10, 2024.
• An evaluation team comprised of MHFC board members, City Council, and city staff reviewed and ranked the submissions based on the following evaluation criteria listed within the RFQ:
|
Evaluation Factors |
Points |
|
Development Team |
15 |
|
Development Experience |
15 |
|
Project Specific Experience |
15 |
|
Financing Experience |
15 |
|
Financing Strategy |
15 |
|
Financing Structure and Share of Development Fee and Cash Flow |
5 |
|
Financial Responsibility |
10 |
|
References |
10 |
• Based on the evaluation results, the MHFC Subcommittee has deemed NRP Lone Star Development, LLC as the most qualified developer for this project.
BACKGROUND INFORMATION:
• On August 9, 2024, the MHFC appointed three board members to the MHFC Subcommittee.
• On September 13, 2024, the MHFC approved and referred to City Council the RFQ for future affordable housing development utilizing public/private partnerships.
• On September 17, 2024, the City Council approved the RFQ and appointed two Council members to the MHFC Subcommittee.
FINANCIAL SUMMARY:
• The MHFC will recognize financial gain from the transaction as a percentage of the developer fee and cash flow. These amounts will be negotiated by McKinney Housing Finance Corporation general partner counsel.
• Section 394.001 of the Texas Local Government Code allows Housing Finance Corporations to partner with private developers in the creation of affordable or mixed-income developments.
• Project proceeds may be used to meet City of McKinney affordable housing needs.
BOARD OR COMMISSION RECOMMENDATION:
• The MHFC Subcommittee has deemed NRP Lone Star Development, LLC, as the most qualified developer for the project.