Title
Consider/Discuss/Act on a Resolution of The McKinney Housing Finance Corporation in Connection with the Corporations Participation in a Multifamily Housing Development and Execution and Delivery of a Memorandum of Understanding with Skyway Villas (TX) Developer LLC relating to the financing, development and operation of the Skyway Villas
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, Housing and Community Development Director
RECOMMENDED BOARD ACTION:
* Approve the Memorandum of Understanding (MOU)
ITEM SUMMARY:
* In addition to the co-development benefits with the McKinney Housing Finance Corporation (MHFC), the Developer will also be seeking a 4% Low Income Housing Tax Credit (LIHTC) from the state. As a result, the project will continue to 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%
12
5%
60%
220
95%
Total
233
100%
* The MHFC is projected to receive approximately $3,189,892 in fee revenues from the public private partnership, over a period of 15 years.
o Developer Fee split: 25% allocated to the MHFC, totaling $2,428,236
o Partnership Management Fee: $35,000 plus 3% annually- estimated at $761,656
o Residuals: 40% of ongoing net cash flow and future sale or refinancing proceeds.
BACKGROUND INFORMATION:
* On April 21, 2026, the City Council approved a Resolution of Support for the proposed acquisition and rehabilitation of the existing affordable housing development known as Skyway Villas.
* On September 12, 2025, the MHFC board approved the submission of an application for allocation of Private Activity Bonds for the Skyway Villas Project in an ...
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