Title
Consider/Discuss/Act on a Resolution Authorizing the McKinney Housing Finance Corporation to Execute a Special Warranty Deed from the City of McKinney, Texas, a Texas Home-Rule Municipal Corporation to the McKinney Housing Finance Corporation, a Texas Non-Profit Corporation
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: November 14, 2025
DEPARTMENT: Housing and Community Development Department
CONTACT: Cristel Todd, Affordable Housing Administrator
Margaret Li, Housing and Community Development Director
ITEM SUMMARY:
• November 4, 2025, City Council Approved the Resolution executing a Special Warranty Deed for the city-owned property at the corner of North Lake Forest Drive and Summit View Drive to the McKinney Housing Finance Corporation (MHFC) for the purpose of developing a Community Land Trust (CLT).
• The city currently owns 3.622 acres on the southwest corner of North Lake Forest Drive and Summit View Drive.
• Staff’s preliminary review of the property estimates that approximately 20 affordable townhomes can be developed with two small pocket parks located at the north and south end of the site.
• The proposed site was rezoned from Office District (O1) to Planned Development District (PD) to allow the proposed single family residential use. A Development Agreement and future Right Of Way reservations will also be needed to develop the site.
• As the next step, staff will initiate a Request for Proposals to select a real estate co-developer to partner with the MHFC to complete the land use entitlements, engineering plans, infrastructure development, architectural design, vertical construction, and home sales support.
BACKGROUND INFORMATION:
• 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 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.
• 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 August 19, 2025, the City Council approved the rezone of the property from Office District to Planned Development District.
• The proposed CLT development will set the terms for the ground lease (usually 99 years) and options for resale to maintain affordability.
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