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: September 20, 2022
DEPARTMENT: Housing and Community Development
CONTACT: Cristel Todd, Affordable Housing Administrator
RECOMMENDED CITY COUNCIL ACTION:
• N/A
ITEM SUMMARY:
• City Council approved the request for Qualifications for future affordable housing development utilizing public private partnership on May 17, 2022
• The City issued a request for qualifications 22-35RFQ) seeking an experienced real estate developer (the "Co-Developer") to maximize the resources available for affordable housing purposes within the City of McKinney. This Request for
Qualifications (RFQ) was intended to identify one 4% tax credit co-development partnership and one Public Facility Corporation (PFC) partnership.
• The RFQ was issued on June 5, 2022.
o Advertised in McKinney Courier Gazette
o Posted on McKinney TV
o 383 matching eBid Supplier Notifications
o Of the 383 notifications, thirty-four (34) were Historically Underutilized Businesses (HUB)
• In response to all notices published, six (6) submissions were received on June 23, 2022.
• An evaluation team comprised of City Council, 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, and in person interviews the City and MHFC has determined Atlantic Pacific Communities, LLC as the most qualified firm for a 4% tax credit co-development partnership.
BACKGROUND INFORMATION:
• City Council supported a Request for Qualifications (RFQ) process for the selection of the private developer.
• On November 12, 2021, the MHFC recommended moving forward with the RFQ process for selecting a co-developer for the FY23 funding cycle.
• On April 8, 2022, the MHFC approved a recommendation to City Council for a RFQ for future affordable housing development utilizing public/private partnerships.
• On May 17, 2022, 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 partnership 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:
• N/A