Title
Update 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: January 15, 2019
DEPARTMENT: Housing and Community Development
CONTACT: Cristel Todd, Affordable Housing Administrator
RECOMMENDED CITY COUNCIL ACTION:
• N/A
ITEM SUMMARY:
• On behalf of the MHFC, the City issued a request for qualifications (18-28RFQ) seeking an experienced real estate developer (the "Co-Developer") to maximize the resources available for affordable housing purposes within the City of McKinney.
• RFQ was issued on October 14, 2018.
o Advertised in McKinney Courier Gazette
o Posted on McKinney TV
o 298 matching eBid Supplier Notifications
• In response to all notices published, five (5) submissions were received on November 1, 2018.
• An evaluation team comprised of City staff, and MHFC board members reviewed and ranked the submissions based on the following evaluation criteria listed within the RFQ:
|
Evaluation Factors |
Points |
|
Development Team |
15 |
|
Development Experience |
15 |
|
Project Specific Experience |
15 |
|
Financing Experience |
15 |
|
Financing Strategy |
15 |
|
Financing Structure and Share of Development Fee and Cash Flow |
5 |
|
Financial Responsibility |
10 |
|
References |
10 |
• Based on the evaluation results, the City and MHFC has deemed The NRP Group, LLC as the most qualified firm for this project.
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.
• On September 14, 2018, the MHFC approved a recommendation to City Council for a RFQ for future affordable housing development utilizing public/private partnerships.
• On October 2, 2018, City Council approved the RFQ.
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 Corporation general partner counsel.
• 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.
• Project proceeds may be used to meet City of McKinney affordable housing needs.
BOARD OR COMMISSION RECOMMENDATION:
• The McKinney Housing Finance Corporation (MHFC) Subcommittee has deemed the NRP Group LLC as the most qualified firm for the project.