Henry County OKs MOU giving developer exclusive control to pursue 210-unit senior affordable project on county land
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Summary
The Henry County Board of Commissioners approved a memorandum of understanding giving KCG Companies an exclusive control period to plan and pursue financing for a senior affordable housing project on about 10 acres at Phillips Drive and Highway 81; the MOU would lead to a 50-year ground lease if the project secures approvals and funding.
Henry County commissioners on Oct. 21 approved a memorandum of understanding (MOU) that gives KCG Companies an exclusive control period to plan, entitle and seek financing for a proposed senior affordable housing project on approximately 10 acres of county-owned land at Phillips Drive and Highway 81 in McDonough.
The MOU grants KCG the exclusive right to “plan, entitle, and develop the property during this control period, which is until 12/31/2027,” County Attorney CJ told the board, adding that the agreement would be followed by a negotiated 50-year ground lease if the project advances.
The vote followed a presentation by a KCG representative who described the proposal as a 4‑story, elevator-served building with about 210 rental units for residents aged 55 and older, targeted at households at or below 60% of area median income with some units at lower AMI tiers. The developer said units would be one- and two-bedroom floorplans with supportive on-site services, and that rents would be set by tax-credit program income limits; utility costs would be factored into the rent calculation.
Why it matters: county staff and the developer said the site is one of the few parcels in Henry County that would be competitive for competitive Georgia Department of Community Affairs (DCA) housing tax credit awards. County ownership and a ground-lease structure can improve a development’s score for state funding, the developer and County Attorney CJ explained, and the MOU is intended to give the developer the control needed to pursue those funds.
Board discussion touched on several topics: how the ground lease affects county flexibility, whether the county should sell rather than lease the land, potential future use of the remaining two acres as a publicly accessible pocket park, the project’s proposed income targeting and utility inclusion, and a timeline tied to the DCA application process. Commissioner Kevin J. Lewis, citing the project’s proximity to District 5 needs, moved to approve the MOU; the motion carried.
The MOU establishes a control period running through Dec. 31, 2027, and makes any final long‑term obligations contingent on a subsequent ground lease and the project’s successful receipt of approvals and financing. County Attorney CJ said that if DCA funding or required approvals are not obtained by the MOU’s drop-dead date, “it would naturally just dissolve.”
The developer said the intent is long-term ownership and operation (they said they typically plan to own properties for decades), that they will provide social-services staff on site, and that on-site transportation was not planned because the developer expects most residents will retain vehicles and the property lies within the county’s demand-response microtransit zone.
Next steps: the MOU gives KCG the exclusive control to pursue entitlements and financing. The project still requires applicable permitting, any necessary zoning or lease approvals, and successful award of state tax-credit funding before construction can begin.
