House votes to curb ‘traveling’ housing finance corporations after extended debate

The Texas House passed HB 15 85 on Tuesday, a measure aimed at stopping what supporters called the practice of “traveling” housing finance corporations (HFCs) that the bill’s proponents said are removing property tax base from local jurisdictions without local consent.

Why it matters: Supporters said the measure protects school districts, counties and cities from losing tax base when out‑of‑jurisdiction HFCs form and issue bonds that remove assessed value from local rolls. Opponents argued that broader reforms are needed and that the bill is narrowly tailored only to stop the out‑of‑jurisdiction practice.

Representative Gates, who led the bill’s floor presentation, described recent activity he said removed nearly $6 billion from local tax rolls since February and called the practice “a problem we need to fix now.” He urged colleagues to deliver “a hundred votes” to stop the practice. Representative Bell of Montgomery — who described heavy losses in his own county — joined Gates on the floor in urging passage and offered to work on additional reforms in follow‑up legislation.

Supporters said the bill applies prospectively to HFCs and does not purport to change past transactions. Lawmakers debated whether the measure would apply retrospectively and whether it was narrowly targeted to residential projects under chapter provisions cited on the floor. Representative Gates said the bill is narrowly tailored to stop travel‑based abuses while other reform measures will follow.

The House passed HB 15 85 to engrossment by a recorded vote of 129 ayes to 16 nays.

What’s next: The bill heads to the Senate. Supporters said they will pursue companion reforms that address affordability requirements and broader HFC oversight.

Actions and formal votes: HB 15 85 (Representative Gates) — passed to engrossment, 129 ayes, 16 nays.