Pecos Housing Finance Corporation, Pleasanton Housing Finance Corporation, Maverick Housing Finance Corporation, and La Villa Housing Finance Corporation v. City of Arlington
15-25-00111-CV
Tex. App.Jul 2, 2025Background
- Pecos Housing Finance Corporation (Pecos) is a Texas nonprofit created to promote affordable housing statewide under the Housing Finance Corporation Act.
- Several Texas cities (including Arlington and Haltom City) challenged Pecos and similar housing finance corporations (HFCs), seeking to limit their operations to within their founding jurisdictions and stop them from claiming tax exemptions on properties elsewhere.
- Trial courts granted temporary injunctions barring Pecos from acquiring property or seeking tax exemptions within these cities and denied jurisdictional pleas from the HFCs.
- The appeals concern whether HFCs can operate beyond local boundaries and if the courts have authority to hear these challenges, especially since the operations impact a large statewide network of lawsuits.
- There are constitutional challenges regarding whether the Act authorizes cross-jurisdictional activities that may violate limits on county taxation authority under the Texas Constitution.
Issues
| Issue | Plaintiff's Argument (Cities) | Defendant's Argument (Pecos/HFCs) | Held |
|---|---|---|---|
| Jurisdiction of Fifteenth Court of Appeals | Court lacks jurisdiction; HFCs are local, not state agencies | Court has jurisdiction; HFCs act as state agencies with statewide authority | Pending/Undecided |
| Geographic Scope of HFC Activities | HFCs must not act outside their original local government boundaries | Act allows HFCs to operate statewide without local boundary restrictions | Pending/Undecided |
| Constitutionality of Housing Finance Corp. Act | Act, if allowing cross-boundary operations/tax exemptions, is unconstitutional | Act's statewide authority and tax exemption scheme are lawful and constitutional | Pending/Undecided |
| Consolidation and Judicial Economy | No argument detailed | Appeals should be consolidated for efficiency due to statewide impact | Pending/Undecided |
Key Cases Cited
- Monsanto Co. v. Cornerstones Mun. Util. Dist., 865 S.W.2d 937 (Tex. 1993) (drew distinction between political subdivisions and statewide agencies for jurisdictional scope)