Title
Consider/Discuss/Act on Proposed 2021 McKinney HFC MCC/DPA Program
Summary
ITEM SUMMARY:
• Prior Program (2016) Statistics:
o Private Activity Cap Used - $6,622,340
o Maximum Mortgage Loans Assisted - $4,138,963
o Dollar Amount of Mortgage Loans Assisted - $438,903
o Number of Mortgagors Assisted - 2
o Average Size of Mortgage Loan - $219,452
o Utilization Percentage for Program - 10.604%
• Proposed (2021) Program Structure:
o Maximum Private Activity Cap - $26,489,360
§ No utilization restriction on PAB cap after July 14th
o Private Activity Cap Proposed - $10,000,000
o Maximum Mortgage Loans Assisted - $ 8,333,333
o Estimated Number of Mortgagors Assisted - 25
o Estimated Average Size of Mortgage Loan - $325,000
• Down Payment Assistance Options:
o TDHCA - up to 4% of mortgage loan amount - 2nd Lien
o TSAHC - Up to 5% of mortgage loan amount - Grant or forgivable 2nd lien
o McKinney Proposed ‐ $10,000 structured as a 2nd lien repayable - the board can determine if this amount needs to be adjusted over time. If 25 loans are funded, MHFC amount funded $250,000
• MCC Credit Percentage:
o TDHCA - 30% for Mortgages up to $175K & 20% for Mortgages above $175K
o TSAHC - 20%
o McKinney HFC -30% ‐ of the mortgage interest paid with a $2,000 annual cap
• TDHCA & TSAHC Fees:
o TSAHC Fees:
§ $200 Compliance Review Fee
§ $500 Issuance Fee
o TDHCA Fees:
§ $275 Compliance Review Fee
§ $400 Issuance Fee (varies)
• Cost of Implementing the Program:
o App Fee ‐ $500
o 35‐day Filing Fee ‐ $416.67 & 2/3 Closing Fee ‐ $833.33
o Program Administrator Fee ‐ $250/per file
o Professional Fees to each Legal Counsel & Financial Advisor
§ Total Fee = $25,000 each
§ Professional Fee Payment Options:
• (1) Total Fee paid at closing
• (2) ½ ($12,500) paid at closing, ½ paid on a deferred basis.
o For every loan that closes, $1,250 paid to each professional until the remaining fee ($12,500) has been paid in full.
• (3) Open for discussion on other options