A $35.9 million redevelopment project will almost double the available affordable housing units for low-income residents at the Lloyd Owens and Cockrell homes in McKinney, according to Christianne Brunini, chief marketing officer for Knight Development.
The project is part of a larger initiative — started 10 years ago — by the residents of the McKinney Housing Authority and its board of commissioners to revitalize the city’s 201 public housing units. Since then, two of the four sites have been redeveloped. This project will close out the last two sites, adding 46 affordable housing units to the city. Overall, the city will have increased the 201 units to 412 through the revitalization of all four properties.
“With the completion of this project, we would have added 211 more affordable units to a city whose population is now 200,000 plus,” said Roslyn Miller, executive director of the McKinney Housing Authority. While the effort to revitalize the 201 public housing sites focused on the city’s public housing, the McKinney Housing Authority currently has just under 800 units of housing assistance, which includes public housing and tax credit and voucher programs.
Knight Development — a real estate development company that specializes in working with public housing authorities and nonprofit organizations to create and rehabilitate affordable housing — is partnering with the McKinney Housing Authority to demolish the existing 50 units at the Lloyd Owens and Cockrell homes that were built on the east side of State Highway 5 in the late ‘50s.
“This process mitigates potential health and safety risks associated with the aging properties,” Miller said. “The long-term impact on the quality of life for both children and adults are priceless. We choose to fight for their well-being.”
By the numbers
The project, called the Remnant at Greenwood, LP, will result in 96 new-construction, affordable housing units: 50 at the Remnant at Greenwood II on the Lloyd Owens site, and 46 at the Remnant at Greenwood I on the Cockrell site.
“These units are targeted to serve low- and very-low-income families and individuals at 30% or below the area median income (AMI), providing much-needed inventory in a community with a critical need for affordable housing opportunities and relief to a few more of the workforce who struggle to live and work there,” Brunini said. In Collin County, the median family income in 2022 was $97,400, and was $77,920 for a family of four at 80% of the area median income, according to data from the city of McKinney, the county seat.
The units will include vinyl plank flooring, modern amenities, Smart Home features and energy-efficient features, which, in similar developments, have helped lower residents’ utility costs from $20-60 per unit each month, Brunini said.
The proposed development will also include a community building on the Lloyd Owens site that will provide amenities such as a computer lab and playground. Knight Development is also reaching out to local organizations interested in partnering to provide social services to residents.
Brunini added that project costs also budget for Davis Bacon Wages, which are set by the Department of Labor to provide all trades a fair wage, however the amount it will take to complete each unit has not been calculated yet due to fluctuating interest rates. The project is scheduled to close in July with construction slated to begin in August of 2023 and estimated to take 32 months.
The project is funded through $12,215,028 in low-income housing tax credits from the Texas Department of Housing and Community Affairs and tax bonds issued through the McKinney Housing Finance Corporation, Brunini said. In addition, $1.8 million in gap funding was provided by the McKinney Community Development Corporation, as well as $200,000 from the McKinney Housing Authority, and the developer is investing $1,360,488 in developer fees.
City Community Capital is providing a loan for construction and permanent debt for $15.6 million, and Red Stone Equity Partners is the equity provider.
Dealing with displacement
While the project will require the temporary relocation of residents, the Department of Housing and Urban Development’s Rental Assistance Demonstration program (RAD) will implement displacement measures, meaning affected residents will have the first right to return to right sized units, and temporary relocation will be paid for by the project, Brunini said.
“Residents will continue to pay 30% of their adjusted income towards the rent, maintain the same basic rights as they possess in the public housing program and gain a new option to request tenant-based assistance if they wish to subsequently move from the property,” according to the Department of Housing and Urban Development’s website.
At the Lloyd Owens and Cockrell homes, there are currently 50 units of low-rent public housing funded through Section 9 of the Housing Act. Through the RAD program, those units will move to a Section 8 platform with a long-term contract, ensuring that the units remain permanently affordable to low-income households.
All 96 units will be covered by a project-based voucher that stays with the property to continue providing the residents with the rental subsidy, Brunini said. After one year, residents can request a choice mobility voucher if they wish to relocate for any reason.
“Yes, moving can be scary for anyone whether you are on public assistance or not,” Miller said. “But the goal here is to improve the quality of life for our residents and provide more affordable housing options in our community.”
Knight Development and the McKinney Housing Authority held a resident meeting on Nov. 17, 2022, and discussed the relocation process with residents on May 23. More meetings will be held as the process progresses, Brunini said. A Resident Information Notice and a General Information Notice were also issued.
“Executive Director Roslyn Miller is such a progressive leader in the affordable housing space. We are so honored to help her achieve her vision for her residents,” said Holly Knight, Knight Development CEO. “We are incredibly grateful to the city for their support in helping us almost double the affordable housing offerings for low-income residents in McKinney.”
