Planning will soon be underway for an affordable townhome development north of US 380.
What’s happening?
McKinney officials posted a request for qualifications in May seeking a development partner to build affordable townhomes near the corner of Bridgeport Road and North Lake Forest Drive. Affordable Housing Administrator Cristel Todd said it will be the first project pursued through the Community Land Trust, an initiative aimed at making housing more affordable.
“It’s going to be a great development for us to build some townhomes,” Todd said.
McKinney City Council members designated the McKinney Housing Finance Corp. as a Community Land Trust in May 2024. It enables the corporation to purchase eligible properties and finance the cost of residential homeownership with a dedicated fund.
It’s a new tool the corporation has in addressing housing affordability, Todd said. MHFC, established in 1980, is a nonprofit arm of the city focused on promoting affordable housing opportunities.
MHFC is run by a seven-member board appointed by McKinney City Council. It operates a program assisting first-time homebuyers with down payments and finances construction for affordable apartment communities, according to its website.
“We do it in so many ways,” Todd said. “Not only with the Community Land Trust but at all levels.”
More details
The RFQ was posted several months after McKinney City Council approved zoning for the project in August. Plans for the 3.6-acre property include 20 townhomes with amenities, Todd said. Over an acre of land will be dedicated to green space, she said.
First, the city has to find a developer to partner with on the project.
“In looking for a partner, we are really looking for someone that understands what a community land trust is [and] how that model [works],” Todd said.
Through the RFQ process, developers will be scored based on things like previous experience in building townhomes or single-family homes, she said. The RFQ is scheduled to close May 21 and will be followed by a review period, Todd said.
City officials anticipated finding a development partner this summer. From there, the developer will determine timelines for design and construction, she said.
How it works
MHFC has partnered with developers in the past on affordable housing developments such as The Independence, a 205-unit rental community that opened in 2022. What makes this project different is the Community Land Trust.
“The thing that makes this different is it’s home ownership,” Todd said. “We are helping with that first-time homebuyer.”
When homebuyers purchase a home through the CLT, they will own the structure but not the land. The land stays within the CLT and is leased to the homebuyers, Todd said. Homes can be sold without the cost of land considered in the purchase, she said.
Money paid for the lease would go back to the CLT which could be used for more affordable housing opportunities, she said.
“You own that home,” Todd said. “You have equity in that home. It's just the same as buying a traditional home. You just don't own the land that it's on, and that’s what helps keep it affordable.”
