Title
Consider/Discuss/Act on a Resolution of the City Council of the City of McKinney, Texas, Supporting the Efforts of the McKinney Housing Authority to Acquire the Kinstead Apartments
Summary
COUNCIL GOAL: Direction for Strategic and Economic Growth (1B: Provide a strong city economy by implementing a Global Housing Strategy with a focus on affordable housing and facilitating a balance between industrial, commercial, residential, and open space)
MEETING DATE: November 19, 2024
DEPARTMENT: Housing and Community Development
CONTACT: Margaret Li, Housing and Community Development Director
Cristel Todd, Affordable Housing Administrator
RECOMMENDED CITY COUNCIL ACTION: N/A
ITEM SUMMARY:
* McKinney Housing Authority (MHA) is seeking a letter of support from the City Council of the City of McKinney for the acquisition of the Kinstead Apartments.
* Property Information:
o Located at 5701 McKinney Place Drive, McKinney, TX 75070
o Built in 2019
o Total Units: 376
* Market Rate: 185 units
* 80% AMI: 162 units
* 30% AMI: 29 units
* MHA will partner with Kalterra Capital Partners, LLC (Kalterra) in a public/private partnership.
o MHA will be the general partner.
o Kalterra will be the special limited partner, providing equity and securing financing.
* There are no interior or exterior renovations proposed.
* MHA anticipates ad valorem tax exemption pursuant to Chapter 392 of the Texas Local Government Code.
BACKGROUND INFORMATION:
* Kalterra is a real estate developer focused on multifamily and mixed-use properties.
* Kalterra has developed over $400 million worth of projects in Texas.
* City Council approval is not required for this partnership but shows support for the project.
FINANCIAL SUMMARY:
* Community Rent Benefit over 10-year period is estimated at $11,152,781
* McKinney Housing Authority is projected to generate $14,860,706 in revenue from the transaction, including an acquisition fee, annual compliance fees, lease payments and a disposi...
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