Title
Receive and update on adopting a Public Facility Corporation and/or a Housing Finance Corporation.
Body
REQUESTOR:
Mayor Pro Tem Bennett-Burton
BACKGROUND:
A Public Facility Corporation (PFC) is a nonprofit public entity created by a local government, usually a city, county, or housing authority, to help finance, develop, or own public-purpose projects such as affordable housing, public buildings, or infrastructure.
A PFC allows local governments to partner with private developers to build or manage facilities that serve a public benefit, especially housing that's more attainable for working families.
* The PFC can own a development (such as an apartment complex) in partnership with a private developer.
* Because it's a public entity, the property can be exempt from property taxes if it meets certain public benefit requirements-such as setting aside a portion of units for residents earning below a certain percentage of the area median income (AMI).
* In exchange, the developer benefits from lower operating costs, while the city gains more mixed-income or affordable housing without having to directly spend public funds.
The PFC's board of directors is typically made up of City Councilmembers, housing authority commissioners, or other public officials. They ensure the project aligns with the City's policy goals and that the public benefit requirements are met over time.
A Housing Finance Corporation (HFC) is a nonprofit public corporation created under state law (in Texas, under the Texas Housing Finance Corporations Act). Its primary purpose is to finance, acquire, construct, and provide housing that's affordable for low to moderate-income residents. It's usually formed by a city or county, and it operates as a separate legal entity with its own board-though it's still connected to the local government that created it.
An HFC can use a variety of tools to make housing more attainable, such as:
* Issuing tax-exempt bonds to help finance multi-fami...
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