Title
Consider/Discuss/Act on a Resolution Authorizing the Formation of McKinney Skyway Villas Holdings, LLC, ("The Ground Lessor") in Connection with the McKinney Housing Finance Corporation Multifamily Housing Revenue Bonds (Skyway Villas), Series 2026; Authoring the Designation of the Corporation as the Sole Member of the Ground Lessor; Approving the Form and Substance of a Limited Liability Company Agreement and the Execution Thereof; Ratifying Certain Actions Heretofore Taken in Connection with the Ground Lessor; Authorizing the Execution of Documents and Instruments Necessary or Convenient to Carry out the Purposes of this Resolution; and Containing other Provisions Relating Thereto
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, Director of Housing and Community Development
RECOMMENDED BOARD ACTION:
* Approve Resolution.
ITEM SUMMARY:
* The proposed Resolution authorizes the legal creation of the McKinney Skyway Villas Holdings, LLC, which will serve as the "Ground Lessor" for the project and designates the McKinney Housing Finance Corporation (MHFC) as the sole member of this new holding entity. This "leasehold" structure is a primary requirement for securing 100% ad valorem property tax exemptions under Texas law. By the MHFC owning the land, the project remains affordable while generating a net financial benefit to the Corporation.
* The proposed Resolution also establishes the framework for the Ground Lessor to enter into a Ground Lease with the Borrower (Skyway Villas (TX) Owner LP), allowing the MHFC to maintain long-term control of the property. Creating a separate LLC for land holding (the "Ground Lessor") provides essential asset decoupling, shielding the ...
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