Developer says affordable senior housing won’t move forward without $2.5M MCDC support

Taylor Thomas, a representative of Palladium USA, told the McKinney Community Development Corporation during a public hearing that his firm needs a $2.5 million project grant from MCDC to build McKinney Ranch Senior Living, a 109-unit community with 72 units set aside at or below 60% of area median income.

"That is correct. It will not move forward," Thomas said when a board member asked whether the development could proceed without MCDC support. He described the project as a $34,000,000 investment that mixes 81 affordable units and 28 market-rate units and said the development has already secured a housing tax credit award and zoning approval.

The request, filed as item 260069, would represent roughly 7.7% of the total project cost, according to Palladium’s presentation. Thomas said higher construction costs, inflated interest rates and lower equity pricing created the current financing gap. He said Palladium is open to structuring assistance as a mix of grants and loans if the board prefers alternative forms of support.

Board members pressed the applicant on alternatives, selections and oversight. Thomas said the development will use standard income verification and annual recertification under TDHCA compliance rules and a 45-year land-use restrictive covenant tied to the housing tax-credit program. "TDHCA will not allow that to occur," he said when asked whether the affordability mix could later be altered.

MCDC members also asked about impact fees and whether fee waivers could reduce the MCDC request. Thomas said the project had sought impact-fee relief and that current relief prospects were limited; Palladium estimated impact fees in excess of $1,000,000 and said the MCDC contribution would help bridge that shortfall. At least one board member noted the FY26 budget set aside $3,000,000 for affordable-housing purposes, placing the Palladium request in that context.

A public speaker, David Craig, said he supported the project and urged the board to approve the request, calling it a class-A affordable senior housing solution that would contribute property taxes and stabilize neighborhood connections. "I'm here to speak in favor of this project," Craig said during public comment.

The board closed the public hearing on the item. No final funding decision was recorded in the public portion of the meeting; the board directed staff and subcommittees to continue reviewing the application and potential programmatic structures.

Next steps: MCDC staff will include the item on a future agenda with additional materials and any recommended conditions or loan structures if the board wishes to pursue alternatives to a straight grant.