29-04-2025
Hays County files temporary restraining order against housing group over tax loophole
HAYS COUNTY, Texas (KXAN) – Hays County has filed temporary restraining orders against two out-of-county housing finance corporations, or HFCs, over acquiring large residential developments, which the officials allege will strip Hays County of valuable tax revenue.
Hays County announced Tuesday the restraining order against Pecos Housing Finance Corporation and Pleasanton Housing Finance Corporation for acquiring developments in San Marcos and Kyle. Officials said that the HFCs acquired several large properties with the intent to remove around $230 million in taxable value from the county's tax base. The county said this would likely lead to a $500,000 loss in tax revenue.
'These organizations are operating without our input, our support, or our authorization,' County Judge Ruben Becerra said in a press release. 'They are pulling hundreds of millions of dollars in property off our tax rolls—money we depend on to fund public safety, health, and other essential services.'
State lawmakers have filed a couple of bills this legislative session aiming to close 'loopholes' that have allowed HFCs to do this.
'While most HFCs are doing the important work of ensuring our communities have access to affordable housing, several 'traveling' HFCs have taken advantage of a loophole in state law allowing them to operate outside of the city or county that sponsored them,' read Texas Rep. Cecil Bell Jr.'s (R-Magnolia) H.B. 1585 Bill Analysis.
In March, Williamson County sued the Cameron County Housing Finance Corporation for two future developments that they say will be tax-exempt
'Williamson County has zero need for the Cameron County Housing Finance Corporation in Williamson County. We did not ask for your help,' Williamson County Judge Bill Gravell said at the time.
'What you're really doing is you're robbing from our children's educational future by creating these tax schemes that take away tax to pay for teachers in the local classroom. It is wrong,' he continued.
Williamson County said this case remains pending.
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