Title
Consider/Discuss/Act on a Resolution of The McKinney Housing Finance Corporation in Connection with the Corporations Participation in a Multifamily Housing Development and Execution and Delivery of a Memorandum of Understanding with Skyway Villas (TX) Developer LLC relating to the financing, development and operation of the 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, Housing and Community Development Director
RECOMMENDED BOARD ACTION:
• Approve the Memorandum of Understanding (MOU)
ITEM SUMMARY:
• In addition to the co-development benefits with the McKinney Housing Finance Corporation (MHFC), the Developer will also be seeking a 4% Low Income Housing Tax Credit (LIHTC) from the state. As a result, the project will continue to include 100% of the units at an affordable rate. The affordability mix will include the following:
|
Area Median Income |
Number of Units |
Percentage of Total |
|
30% |
12 |
5% |
|
60% |
220 |
95% |
|
Total |
233 |
100% |
• 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.
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 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 will realize financial benefits outlined in the item summary totaling approximately $3,189,892. In addition, the Project will continue to provide 100% of the units at an affordable rate, providing rent savings for tenants.