Title
Update on Affordable Housing Development through a Public/Private Partnership with the McKinney Housing Finance Corporation and NRP Group
Summary
COUNCIL GOAL: Enhance the Quality of Life in McKinney
MEETING DATE: May 7, 2019
DEPARTMENT: Housing & Community Development
CONTACT: Janay Tieken, Housing & Community Development Manager
Cristel Todd, Affordable Housing Administrator
ITEM SUMMARY:
• The Target Area for the Development, outlined in the RFQ, was all census tracts west of Hwy 75
• Staff direction narrowed potential sites to those that conform to the recently approved Comprehensive Plan
• Potential sites were further constrained as the Difficult Development Area (DDA) in McKinney decreased in size after the issuance of the RFQ
• DDAs defined by HUD, with high land, construction and utility costs relative to the area median income and are based on a number of other factors
• The current DDA is south of Virginia, west of 75, north of 121 and east of Custer
• The development is not required to be in a DDA but finding a suitable site within a DDA qualifies the project for additional tax credits, thereby reducing funding gaps
• This is especially important in McKinney where land values are high
• The DDA us set by HUD and can vary from year to year; the city has no control over DDAs
• Two potential locations for the development have been identified
• These sites are in the DDA and the target area outlined in the RFQ
• Based on MHFC consensus staff directed the developer to move forward with contracts and site plans. Other potential sites haven’t been ruled out.
• The Development Agreement between the MHFC and NRP Group, setting forth the terms of the public/private partnership, is expected to be presented to City Council for final approval within the next two months
BACKGROUND INFORMATION:
• October 2, 2018 - City Council Approved the Issuance of a Request for Qualifications (RFQ) for an Affordable Housing Development through a Public/Private Partnership with the McKinney Housing Finance Corporation (MHFC) and selected developer
• January 15, 2019 - City Council was updated on the selected developer
FINANCIAL SUMMARY:
• N/A
BOARD OR COMMISSION RECOMMENDATION:
• N/A