Title
Consider/Discuss/Act on Request for Qualifications for Future Affordable Housing Development Utilizing Public Private Partnership with the McKinney Housing Finance Corporation
Summary
COUNCIL GOAL: Financially Sound Government
4A: Provide funding and organizational framework to ensure continual economic improvements
MEETING DATE: October 2, 2018
DEPARTMENT: Housing and Community Development
CONTACT: Cristel Todd, Affordable Housing Administrator
RECOMMENDED CITY COUNCIL ACTION:
* Approve McKinney Housing Finance Corporation (MHFC) recommendation for Request for Qualifications (RFQ) for future affordable housing development utilizing partnership with McKinney Housing Finance Corporation (MHFC)
ITEM SUMMARY:
* Section 394.001 of the Texas Local Government Code allows Housing Finance Corporations to partner with private developers in the creation of affordable or mixed-income developments
* Housing Finance Corporations receive financial benefit from the partnership from the project by sharing in the project cash flow and development fee
* Project proceeds may be used to meet City of McKinney affordable housing needs
BACKGROUND INFORMATION:
* On September 18, 2017, City Council discussed the ability of the McKinney Housing Finance Corporation to enter into co-developer agreements with private affordable housing developers
* City Council supported a competitive Request For Qualifications (RFQ) process for the selection of the private developer
* On September 29, 2017, the MHFC recommended moving forward with the competitive RFQ process for selecting a co-developer for the FY19 funding cycle
* The MHFC recommends the attached RFQ for future affordable housing development utilizing public/private partnerships
FINANCIAL SUMMARY:
* The McKinney Housing Finance Corporation will recognize financial gain from the transaction as a percentage of the developer fee and cash flow. These amounts will be negotiated by McKinney Housing Finance Corporati...
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