Title
Consider/Discuss/Act on a Resolution of the McKinney Housing Finance Corporation Authorizing the Submission of Applications for Allocation of Private Activity Bonds to the Texas Bond Review Board and Declaration of Expectation to Reimburse Expenditures with Proceeds of Future Debt for the Franklin Branch Apartments Project and Containing other Matters Incident and Related Thereto
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: April 10, 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:
• On December 13, 2024, NRP Holdings LLC (the “Developer”), was selected as the co-development partner for the McKinney Housing Finance Corporation (MHFC) Request for Qualifications (RFQ). The Developer is proposing a 100% affordable, 288-unit multifamily housing development to be located on an approximately 15.7-acre site on the southwest corner of FM1461 and Baxter Well Road known as the Franklin Branch Apartments (the “Project”).
• The proposed Resolution authorizes the submission of the Allocation or Carryforward of Private Activity Bonds applications for Program Year 2026 or 2027 to the Texas Bond Review Board for the acquisition, construction, and equipping of a qualified residential rental development located at 3565 FM 1461, McKinney, TX
• The tax-exempt bonds are not to exceed a principal amount of $51,000,000.
• Proceeds will be loaned to Franklin Branch Apartments Ltd. or an affiliate of NRP Holdings LLC
• Declares the Corporations official intent to reimburse the borrower for capital expenditures from bond proceeds, as required by Treas. Reg. § 1.150-2.
• Ensure the borrower’s ability to use tax-exempt financing for project-related costs incurred prior to bond issuance
BACKGROUND INFORMATION:
• On September 22, 2024, the MHFC issued an RFQ to select a qualified developer for a public private partnership deal. In response to all notices published, four 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 evaluation criteria listed within the RFQ.
• On December 13, 2024, MHFC approved NRP Holdings, LLC as the qualified developer and co-development partner.
• On February 3, 2026, the City Council approved a Petition to Annex and a Request to Zone the Subject Property to “MF36” - Multi-Family Residential District.
FINANCIAL SUMMARY:
• The proposed Project is estimated to receive approximately $3,039,257 in ad valorem tax abatement over a 15-year period. In exchange, the MHFC is estimated to receive approximately $3,420,000 in guaranteed income over the same time period.