Title
Consider/Discuss/Act on a Request for Qualifications for Future Affordable Housing Development Utilizing Public Private Partnership with the McKinney Housing Finance Corporation
Summary
COUNCIL GOAL: Enhance the Quality of Life in McKinney
5F: Maximize Partnerships between the City of McKinney and Private Industry
MEETING DATE: May 17, 2022
DEPARTMENT: Housing and Community Development
CONTACT: Cristel Todd, Affordable Housing Administrator
Janay Tieken, Director of Housing and Community Development
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:
• In October 2018, the City Council approved a Request for Qualifications (RFQ) for the process to select a private developer to partner in developing an affordable or mixed-income development.
• The resulting project, The Independence by NRP Holdings, LLC will celebrate a grand opening in June of 2022.
• Based on the success of the first partnership and the Council priority to further workforce and affordable housing, a second RFQ for more projects has been prepared.
• The McKinney Housing Finance Corporation (MHFC) reviewed and recommended approval of the attached RFQ at their April meeting.
• This RFQ differs from the first RFQ in two ways:
o It permits consideration for Public Facilities Corporations (PFC’s).
o It is an open RFQ, with no submittal deadline or limit on the number projects that can be considered.
o
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 financial counsel
BOARD OR COMMISSION RECOMMENDATION:
• The McKinney Housing Finance Corporation (MHFC) voted on April 8, 2022, to recommend the attached Request for Qualifications (RFQ) for future housing development utilizing a public/private partnership with the McKinney Housing Finance Corporation (MHFC)