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Council debates dedicating public facilities corporation revenue to affordable housing fund
Summary
City staff proposed amending McKinney Public Facilities Corporation bylaws so net lease revenue from a completed PFC project (about $420,000 annually) could be routed to an affordable housing fund or split with the general fund; council members asked staff to draft bylaw amendments and financial projections.
City staff presented possible amendments to the McKinney Public Facilities Corporation (PFC) bylaws during the Aug. 5 City Council work session to dedicate net revenues from an existing PFC lease toward affordable housing initiatives, including the Community Land Trust (CLT).
Staff said the PFC was created under Chapter 303 of the Texas local government code and that the city’s current PFC arrangement with the developer Jefferson Verdon will produce roughly $420,000 in annual lease revenue once complete. "You can absolutely leave it in the general fund," staff said when asked if the city could continue the existing practice of depositing those net revenues into the general fund.
Council members discussed alternatives: leave the revenue in the general fund for maximum flexibility, dedicate it entirely to the city’s affordable housing fund (Fund 14) or the CLT, or split the revenue between the general fund and affordable-housing accounts. Several members supported an interim 50/50 split between the general fund and Fund 14 as a compromise. One councilmember said a dedicated allocation would show a sustained commitment to affordable housing; another said the CLT likely needs larger, variable capital infusions to complete its target of 10 single-family units or townhomes by Sept. 30, 2026.
Staff said fund 14 is an existing affordable-housing fund that could receive and disburse these revenues on council direction. Council members asked staff to prepare projections showing how an annual allocation of $420,000 (or a 50/50 split) would relate to anticipated capital needs for potential CLT projects over a five-year horizon and to return with bylaw language options for council consideration.
No formal ordinance or bylaw changes were adopted at the Aug. 5 work session. The council directed staff to prepare draft bylaw amendments and financial projections and to place the matter on a future agenda for formal action.
