Rowlett adopts ordinance to vet extraterritorial housing finance corporations; $3,000 application fee approved

On June 17 the Rowlett City Council adopted an ordinance establishing a procedure to review requests from housing finance corporations (HFCs) based outside the city that seek to own real property in Rowlett for residential development. The measure, passed unanimously, is intended to align the city’s local process with recent state legislation and to give Rowlett oversight of potential HFC‑led acquisitions.

Council members discussed the need to ensure out‑of‑jurisdiction HFCs could not purchase properties and take them off the local tax rolls without municipal notice or input. The ordinance creates a local mechanism for the city to require an HFC to apply for permission to own and operate residential real property within Rowlett and to specify an annual approval process tied to tax years.

During the same meeting the council also adopted a fee for review of such HFC applications. Deputy City Manager / staff adviser Renessa Wade told the council the proposed fee was $3,000 based on similar application costs and a review of staff time and comparable fees. The fee is intended to cover the city’s administrative review; the council adopted the $3,000 fee as an amendment to the master fee schedule.

The city attorney advised council to align the local ordinance with state law and cautioned against adding requirements that could jeopardize compliance with the enabling legislation. The council voted 7–0 on the ordinance and on the fee amendment to the master fee schedule.

Councilmembers said the ordinance will provide Rowlett with a clearer role when extraterritorial HFCs pursue tax‑exempt or tax‑reduction strategies affecting local property tax rolls. The ordinance does not itself grant tax exemptions; it establishes a local review and approval step before an HFC’s property ownership can proceed.