McKinney Housing Finance Corporation


What is the McKinney Housing Finance Corporation (MHFC)?

MHFC is a public, non-profit corporation that was established in 1980 under the provisions of the Texas Housing Finance Corporation Act, Chapter 394, Local Government Code, as amended, for the purpose of benefiting and accomplishing public purposes of and on behalf of the City of McKinney, Texas. Such purposes include financing the cost of residential ownership and development that will provide decent, safe, and sanitary housing for residents of the city at prices they can afford. The corporation is exempt from federal taxation under the Internal Revenue Code.


The primary activity of MHFC is to issue tax-exempt single-family mortgage revenue bonds and bonds for affordable multi-family housing projects. This brings in revenue for the MHFC to create and promote affordable housing opportunities.


The MHFC board includes seven volunteer residents of McKinney appointed by the McKinney City Council. Each member may serve up to two, two-year terms.


What is the function of the McKinney Housing Finance Corporation (MHFC)?

MHFC provides single-family homeownership and multi-family rental opportunities to persons meeting specific income requirements. Our services include the following:

  • Single-family housing – We provide assistance to first-time homebuyers with our Down Payment Assistance Program and Mortgage Credit Certificate Program. These programs help families achieve homeownership by decreasing the financial burden of mortgage and related purchase costs.
  • Multi-family housing – We also finance the construction or acquisition of multi-family communities designed to provide below-market-rate rental opportunities. As appropriate, we co-develop and assume an ownership role.


What does it mean for the MHFC to Co-develop?

When co-developing a deal, the MHFC assumes an ownership role in the project. This allows the MHFC to play a role in decision making and make money from the developer fee, cash flow, and sales tax savings.


Is City Council in favor of the MHFC serving in a co-development role?

Yes. City Council is in favor of the MHFC being a Co-developer and issuing a Request for Qualifications (RFQ) to select a developer to partner with on multi-family development.

September 18, 2017 – CC WS Agenda item – Consider/Discuss Low Income Housing Tax Credit (LIHTC) Funding and the McKinney Housing Finance Corporation Role in Providing Affordable Housing Options


How does the process begin?

An MHFC Subcommittee was appointed to help create the RFQ that would be issued to find qualified developers to partner on an Affordable Housing Development. 


The subcommittee includes City Council members Scott Elliott and La’Shadion Shemwell and three members of the MHFC board, President Harry Hickey, Vice President Bridgette Wallis, and Treasurer James Brensnahan.

October 27, 2017 – MHFC Agenda item - Consider/Discuss/Act on Appointment of Three MHFC Subcommittee members to develop an RFQ for Future Affordable Housing Development Utilizing Public-Private Partnerships with the MHFC


February 5, 2018 - MHFC Subcommittee met and gave city staff direction on the RFQ.

April 13, 2018 - MHFC Agenda item – Update on RFQ for Future Affordable Housing Development Utilizing Public-Private Partnerships with the MHFC.

June 29, 2018 - MHFC Subcommittee met and reviewed the RFQ.

July 13, 2018 - MHFC Agenda item – Consider/Discuss/Act on a Recommendation to Council for Request for Qualifications (RFQ) for Future Affordable Housing Development Utilizing Public-Private Partnership with the McKinney Housing Finance Corporation.

  • Tabled the RFQ until August 10, 2018 meeting for the subcommittee to meet and make changes and bring back to the MHFC.

July 18, 2018  - MHFC Subcommittee met and discussed a new RFQ for review and revisions.


When was the RFQ approved?

The RFQ was approved and recommended to City Council for approval by the MHFC at the September 14, 2018 board meeting.

September 14, 2018 – MHFC Agenda item - Consider/Discuss/Act on a Recommendation to Council for Request for Qualifications (RFQ) for Future Affordable Housing Development Utilizing Public-Private Partnership with the McKinney Housing Finance Corporation


Did City Council Approve the RFQ that was published?

Yes. City Council approved the RFQ at the 10/2/18 City Council Meeting. They also requested that city staff member Trish Jackson, facilities construction manager, be on the selection committee due to her vast knowledge of construction projects.

October 2, 2018 - CC Agenda item – Consider/Discuss/Act on Request for Qualifications for the Future Affordable Housing Development Utilizing Public-Private Partnership with the McKinney Housing Finance Corporation


When was the RFQ published?

The RFQ was published on October 14, 2018, with a second run on October 21, 2018.


What was the deadline for the RFQ?

The submittals were due on November 1, 2018, no later than 1 pm.


Who responded to the RFQ?

The NRP Group LLC - San Antonio

Pedcor Investments LLC – Indiana

Brinshore Development LLC – Illinois

Charleston Residential Properties – Dallas

KRR Construction LTD & DFW Advisors – Duncanville


What developer was selected through the RFQ process?

The NRP Group LLC was selected to partner with the MHFC.


When did the MHFC know about the selection?

The MHFC was updated on the selection of NRP by the subcommittee at the January 11, 2019 board meeting.

January 11, 2019  MHFC Agenda item – Update on the Request for Qualifications (RFQ) for Future Affordable Housing Development Utilizing Public-Private Partnership with the McKinney Housing Finance Corporation


The MHFC hired partnership Counsel to negotiate on behalf of the MHFC at the January 11, 2019 meeting

January 11, 2019 -- MHFC Agenda item -- Consider/Discuss/Act on Chapman and Cutler LLP as Counsel to the Corporation in its Capacity as General Partner for Affordable Housing Development Partnership Project


Does City Council know The NRP Group LLC was selected for the partnership?

Yes. City Council was updated. The process of selection was praised.

January 15, 2019 – CC WS Agenda item – Update on Request for Qualifications for Future Affordable Housing Development Utilizing Public-Private Partnership with the McKinney Housing Finance Corporation


Who is The NRP Group LLC?

They are a national multifamily developer, general contractor and property manager founded in 1995. They have developed over 28,000 units in 15 states, and managed over 20,000 residential units. The group has more than 300 years of collective executive team experience, and over 700+ employees nationwide. They have an annual building revenue of over $300 million and closed over $5 billion in real estate, $3 billion since 2009.


Development – NRP Development handles every aspect of development from concept to completion. The are an experienced multifamily developer of market-rate, affordable and senior housing projects along with significant experience in single-family infill housing.

Construction – NRP Contractors is a full-service general contractor, licensed in 12 states, providing professional construction services for multifamily and single-family homes. Over 28,000 units have been built since inception.

Property Management – NRP Management is a full-service property manager with over 18,000 market rate, affordable and senior rental units under management.

Investment Services – NaviStone is a financial company and consultancy, owned by the principals of NRP, tasked with providing financial certainty for tax credit properties as a tax credit purchaser and tax-exempt bond buyer.

Development Team – The NRP Group Development, NRP Management LLC, Cross Civil Engineers (out of McKinney) Munoz & Company Architects/Womack Hampton Architects (out of Dallas)

Financing Experience – NRP has closed 67 Low Income Housing Tax Credit transactions in Texas over 15 years with various institutions ranging from Bank of American to Texas Capital Bank. Some of their non-profit partners include San Antonio Housing Trust; Travis County Housing Finance Corporation; Fort Worth Housing Finance Corporation; Austin Housing Finance Corporation; Denton Housing Authority; Dallas Housing Finance Corporation; Community Housing Resource Partners, Prospera Housing and Community Services.


The Memorandum of Understanding was tabled since it wasn’t completed by the April 12, 2019, MHFC board meeting.

April 12, 2019 – MHFC Agenda item – Consider/Discuss/Act on a Memorandum of Understanding (MOU) for a Potential Multifamily Partnership with NRP Holdings LLC. 


Two possible property locations were presented to the MHFC board that are both west of 75 and in the Difficult Development Area (DDA).

April 12, 2019 – MHFC Agenda item – Executive Session – C. Sec 551.072. Deliberations about Real Property. Project# 18-28RFQ


What is a Difficult Development Area (DDA)?

DDAs are areas, defined by U.S. Department of Housing & Urban Development (HUD), with high land, construction and utility cost relative to the area median income and are based on a number of other factors.


Where is the DDA? 

The current DDA is south of Virginia, west of 75, north of 121 and east of Custer.


Do you have to build in the DDA?

It is not required to be in the DDA but finding a suitable site within a DDA qualifies the project for an additional 30% tax boost in tax credits, thereby reducing funding gaps. This is especially important in McKinney where land values are high.


Does City Council know about the DDA?

Yes, City Council was updated on the DDA at the May 7, 2019 work session. City Council didn’t express any objection.

May 7, 2019 – CC WS Agenda item – Update on Site Selection for Affordable Housing Development through a Public/Private Partnership with the McKinney Housing Finance Corporation and NRP Group. 


MHFC Board was updated on the DDA presentation made to City Council at the May 7, 2019 work session.

May 10, 2019 – MHFC Agenda item – Update on City Council Work Session Item on Affordable Housing Development through a Public/Private Partnership with the McKinney Housing Finance Corporation and NRP Group.


Does the MHFC have an agreement in place with NRP?

Yes, a Memorandum of Understanding (MOU) was approved at the June 27, 2019 board meeting.

June 27, 2019 – MHFC Agenda item – Consider/Discuss/Act on a Memorandum of Understanding (MOU) for a Potential Multifamily Partnership with NRP Holdings LLC.


Is the location for the development known?

There is a location that has been put under contract.

July 12, 2019 – MHFC Agenda item – Discuss Project #18-28RFQ

August 8, 2019 - MHFC Agenda item - Discuss Project #18-28RFQ (Contract and slope analysis)


Have Private Activity Bonds approved?

August 8, 2019 - An inducement resolution has been approved.  MHFC Agenda item - Consider/Discuss/Act on All Maters Incident and Related to the Submission of an Application or Applications for Allocation of Private Activity Bonds to the Texas Bond Review Board and Declaration of Expectation to Reimburse Expenditures with Proceeds of Future Debt for the McKinney Flats Project, Including the Adoption of A Resolution Containing Other Matters Indicdent and Related Thereto


Will rezoning be required?

Yes, letter of intent was submitted on September 3, 2019.  Zoning case number is Zone2019-0087.


Timeline of Events

September 18, 2017- City Council is in favor of the MHFC being a Co-developer and issuing a Request for Qualifications (RFQ) to select a developer to partner with on a multi-family development

October 27, 2017 - MHFC Subcommittee was appointed

February 5, 2018 – MHFC Subcommittee met and gave city staff direction on the RFQ

April 13, 2018– MHFC updated on the RFQ

June 29, 2018 – MHFC Subcommittee met and reviewed the RFQ

July 13, 2018 – MHFC Tabled the RFQ until next meeting for the subcommittee to meet and make changes and bring back to the MHFC

July 18, 2018 – MHFC Subcommittee met and discussed a new RFQ for review and revisions

September 14, 2018 – MHFC approved and recommended the RFQ to City Council for approval

October 2, 2018 - City Council approved the RFQ. They also requested that city staff member Trish Jackson, facilities construction manager, be on the selection committee.

October 14, 2018 - The RFQ was published with a second run on October 21, 2018

November 1, 2018 – RFQ deadline. Submittals due no later than 1 pm

January 11, 2019 - MHFC was updated on the selection of NRP by the subcommittee

January 11, 2019 – MHFC engaged Chapman and Cutler LLP as Counsel to the Corporation in its capacity as General Partner for Affordable Housing Development Partnership project

January 15, 2019 - City Council was updated on the selection of The NRP Group LLC for the partnership

April 12, 2019 - The MHFC tabled the approval of the Memorandum of Understanding (MOU) 

April 12, 2019 – MHFC learned about two possible property locations and Difficult Development Areas (DDA)

May 7, 2019 - City Council was provided information about the DDA, and two possible site locations west of 75 had been located

May 10, 2019 – MHFC Board was updated on the DDA presentation made to City Council at the May 7, 2019 work session

June 27, 2019 – MHFC approved the Memorandum of Understanding (MOU) for a Multifamily Partnership with NRP Holdings LLC

July 12, 2019 – MHFC was provided possible development location that has been put under contract

August 8, 2019 - Property contract and slope analysis were provided to MHFC

August 8, 2019 - Inducement resolution was passed

September 3, 2019 - Letter of intent for rezoning was submitted