Title
Consider/Discuss/Act on a Resolution Approving Assignment of Private Activity Bond Authority to the Texas Department of Housing and Community Affairs; and Containing Other Provisions Relating to the Subject
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: August 18, 2026
DEPARTMENT: Housing and Community Development
CONTACT: Cristel Todd, Affordable Housing Administrator
Margaret Li, Director of Housing and Community Development
RECOMMENDED CITY COUNCIL ACTION:
* Approve Resolution
ITEM SUMMARY:
* Chapter 1372 of the Texas Government Code (the Texas Private Activity Bond Allocation Act) is the state law that allows Housing Finance Corporations (HFCs) to apply for and receive a portion of Texas's annual tax-exempt bonding authority (state ceiling).
* The McKinney Housing Finance Corporation (MHFC) will apply to the Texas Bond Review Board (TBRB) for $6,000,000 in Private Activity Bonds (PAB) volume cap and assign the authority to the Texas Department of Housing and Community Affairs (TDHCA) to administer tax-exempt bond program and Mortgage Credit Certificates (MCCs) locally.
* Qualified first-time homebuyers will gain access to below-market interest rate mortgages, MCC tax credits, and TDHCA's Down Payment Assistance (DPA) program.
* The MHFC will provide an additional $5,000 in local DPA per homebuyer to enhance affordability for McKinney residents.
* TDHCA handles all homebuyer qualifications, lender network management, loan servicing, reporting, and compliance. The MHFC's role is limited to applying for the allocation and executing an agreement with TDHCA.
* The MHFC is not required to qualify homebuyers, service loans or do anything beyond applying for PAB cap and executing an agreement with TDHCA.
* T...
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