Title
Discuss Public Facilities Corporations (PFC) as a Tool for Workforce and Affordable Housing
Summary
COUNCIL GOAL: 5E: Enhance the Quality of Life in McKinney
(Maximize Partnerships Between the City of McKinney and Private Industry)
MEETING DATE: May 3, 2022
DEPARTMENT: Housing and Community Development
CONTACT: Janay Tieken, Director of Housing and Community Development
ITEM SUMMARY:
• Staff requests City Council direction on affordable housing development policy utilizing the Public Facility Corporation (PFC) model
• The Public Facility Corporation (PFC) model for financing affordable housing development is gaining popularity with developers due to less State oversight, higher profit margins and less competition for funding
• The McKinney Housing Authority has a current RFQ for developers utilizing the PFC model and the MHFC RFQ allows for developers to submit a PFC project
• Only the McKinney Housing Authority and City Council can create a Public Facility Corporation (PFC)
BACKGROUND INFORMATION:
• Developers must partner with either a City PFC or the McKinney Housing Authority PFC if they wish to develop affordable housing under Section 303.042(f) within the City of McKinney
• Developers do not need a Resolution of Support from the City to utilize the PFC model, but City Council can set policy for the utilization of the PFC tool
FINANCIAL SUMMARY:
• Affordable rents are possible due to the ad valorem tax exemption that is brought to the project by the public ownership of the land
BOARD OR COMMISSION RECOMMENDATION: N/A