Title
Consider/Discuss/Act on a Memorandum of Understanding with NRP Holdings LLC. relating to the financing, development and operation of the Franklin Branch Apartments
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, Housing and Community Development Director
RECOMMENDED BOARD ACTION:
* Approve the Memorandum of Understanding (MOU)
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 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").
* In addition to the co-development benefits with the MHFC, the Developer will also be seeking a 4% Low Income Housing Tax Credit from the state. As a result, the project will 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%
29
10%
60%
176
61%
70%
83
29%
Total
288
100%
* In accordance with the MOU, the MHFC will receive the following fees for the public private partnership:
o Developer Fee
* 30% of all Developer Fees (estimated at $2,713,000)
o General Contractor Fee
* $335,000
o Partnership Management Fee
* $20,000 + 3% annually (estimated at $372,000 over 15 years)
o Net Cash Flow
* 50% of the Net Cash Flow (estimated at $2,505,000 over 15 years)
o Sale or Refinance Net Cash Flow
* 1.5% of gross sales proceeds
o Total Fees estimated at $5.9 million over 15 years
BACKGROUND INFORMATION:
* On September 22, ...
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