Pecos Housing Finance Corporation, a Texas Nonprofit Corporation and Cara Turn, Maribel Alvarez, and Irene Dominguez, in Their Official Capacities as Board Members of Pecos Housing Finance Corporation v. City of Haltom City, Texas
15-25-00112-CV
Tex. App.Jul 2, 2025Background
- Pecos Housing Finance Corporation (Pecos HFC) and similar entities are nonprofit housing finance corporations created under Texas statute to provide affordable housing by partnering in real estate development, with related property and income tax exemptions.
- Several Texas cities (including Arlington, Fort Worth, and Haltom City) have sought to block Pecos HFC and similar "traveling HFCs" from operating within city boundaries, arguing resulting tax-exempt properties deplete the local tax base.
- Trial courts issued orders enjoining Pecos HFC from obtaining or seeking tax exemptions for properties within the boundaries of these cities, and denied Pecos' pleas to the jurisdiction; these orders are on appeal in the Fifteenth Court of Appeals.
- The municipalities argue HFCs are limited to operating within the jurisdiction of their creating local government; if the statute allows broader operation, they claim it is unconstitutional.
- There are at least fourteen similar lawsuits pending statewide, with overlapping legal and constitutional issues about state agency status, geographic scope, and tax exemption powers.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether HFCs can operate statewide or only within boundaries of creating local government | Cities argue HFCs are statutorily confined to their local government's boundaries | Pecos argues Act unambiguously allows operation statewide | Not decided in excerpts provided |
| Whether HFCs are state agencies or political subdivisions for appellate jurisdiction | Pecos argues HFCs operate statewide, akin to state agencies, so appeals fall under this court's exclusive jurisdiction | Cities contend HFCs are political subdivisions with local reach | Not decided in excerpts provided |
| Constitutionality of Act's authorization for HFCs to operate and grant tax exemptions outside home county | Cities claim Act violates the Texas Constitution's limits on county ad valorem taxation authority | Pecos disputes any constitutional infirmity, asserting statutory powers are valid | Not decided in excerpts provided |
| Appropriateness of statewide consolidation for judicial efficiency | Pecos favors consolidation in one appellate court due to common, statewide legal questions | Cities' position not specified | Not decided in excerpts provided |
Key Cases Cited
- Monsanto Co. v. Cornerstones Mun. Util. Dist., 865 S.W.2d 937 (Tex. 1993) (distinguishes political subdivisions, which exercise jurisdiction over portions of the state, from state agencies with statewide jurisdiction)