Title
Consider/Discuss/Act on a Request for Qualifications for Future Affordable Housing Development Utilizing Public Private Partnership with the McKinney Housing Finance Corporation
Summary
COUNCIL GOAL: Enhance the Quality of Life in McKinney
5F: Maximize Partnerships between the City of McKinney and Private Industry
MEETING DATE: September 13, 2024
DEPARTMENT: Housing and Community Development
CONTACT: Cristel Todd, Affordable Housing Administrator
ITEM SUMMARY:
• RFQ for future affordable housing development, utilizing public private partnership with the McKinney Housing Finance Corporation
• New construction Multifamily Development West of Highway 75
• New to this RFQ - Acquisition/Rehabilitation of existing Multifamily Developments (15+ years old)
• 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
• Housing Finance Corporations receive financial benefit from the partnership from the project by sharing in the project cash flow and development fee
• Project proceeds may be used to meet City of McKinney affordable housing needs
• The approved RFQ will be referred to the City Council for their consideration and approval at the September 17, 2024 meeting.
BACKGROUND INFORMATION:
• Previous Partnerships
o January 4, 2023, MHFC approved negotiations with Palladium USA International, Inc
• Palladium - 172 units - currently under construction
o January 11, 2019, MHFC approved the selection of NRP Holdings, LLC.
• The Independence 204 units
FINANCIAL SUMMARY:
• The McKinney Housing Finance Corporation 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 financial counsel