AUSTIN, Texas — Williamson County has filed a lawsuit against a Housing Finance Corporation based in a South Texas county over what it alleges are violations of the Texas Housing Finance Corporations Act.
In a hearing Wednesday morning, Williamson County obtained a temporary restraining order against the Cameron County Housing Finance Corporation (HFC), preventing them from taking further action in Williamson County.
The lawsuit alleges that the Cameron County HFC is seeking to remove two multifamily developments in Williamson County from the county’s tax rolls, which Williamson County officials say would result in the loss of millions of dollars in real property value from the county’s tax base.
The developments owned by the HFC are located in Siena MUD, Hutto ISD and ESD #3.
According to Williamson County officials, removal of the property from the tax rolls would have dramatic financial implications, claiming that Hutto ISD alone would lose more than $1 million per year in property tax revenue. It would also affect tax revenue for first responders and municipal utility districts.
Under the Texas Housing Finance Corporations Act, HFC’s across the state can get property tax exemptions so long as they develop affordable housing. In the suit, Williamson County argues that the law sets the limitation to within an HFC’s home county, rather than anywhere in the state.
Williamson County Commissioner Russ Boles said the two properties in question are new apartment complexes on County Road 110, ranking as the district’s fifth and 12th highest-valued properties. He stated that he had reached out to Cameron County commissioners and Housing Finance Corporation (HFC) board members about their violations but received no response except from County Judge Eddie Trivino, who dismissed the concerns, according to Boles.
Williamson County Judge Bill Gravell accused the Cameron County HFC of “robbing from the education of our children.” Gravell claimed the HFC plans to exempt six to eight more apartment developments in Williamson County, allowing “five unelected people, who were appointed by a Commissioners Court 350 miles away “to make decisions for Williamson County residents. Gravell called it “criminal” and announced he was requesting Texas Attorney General Ken Paxton to investigate the Cameron County HFC.
Gravell warned other housing finance corporations considering similar actions in Williamson County that they would face legal consequences.
“We will take you to court and we will hold you accountable because you will not come into our community and steal from our children,” Gravell said.
KVUE reached out to the Cameron County HFC for a statement. A representative said they had no comment.