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Council hears update on Pecos Housing Finance Corporation’s out‑of‑town deals and local grant use
Summary
A council briefing outlined how the Pecos Housing Finance Corporation partners with developers, exempts rehabilitated property from property tax and reinvests a portion of returns into local grants; staff said HFC aims to close multiple deals statewide and has committed roughly $447,000 for local housing refurbishments so far.
A city representative briefed Pecos City Council on the operations and recent activity of the Pecos Housing Finance Corporation (HFC) during public discussion at the Feb. 13 meeting.
The speaker said the HFC partners with private developers and forms a limited liability company for each acquisition; because the HFC is frequently a partner and landowner, rehabilitated or newly developed properties can receive property tax exemptions under the current agreements. “A portion of that goes to the HFC, which gets reinvested in their local wherever they invested in,” the speaker said.
The HFC, the speaker said, is active in multiple Texas cities and aims to complete about 75 transactions by March. Locally, the speaker said the HFC has committed approximately $447,000 for grants that assist in refurbishing homes for elderly and disabled residents; the speaker said about 25 such projects have been finished and another 15 were planned.
Council members asked how the financing works and whether the HFC is providing direct construction work; staff clarified the HFC typically partners with developers and allocates funds to qualified contractors to perform rehabilitation work. The speaker also said about 90% of units in projects are set aside for low- and moderate-income households while roughly 10% may be market-rate units within the same developments.
The speaker said the HFC representation to the city includes attorney commitments to provide monthly financial reports and that the HFC’s financing structure is the subject of pending state legislation; staff said they will invite HFC representatives and counsel to make a formal presentation to the council at a future meeting to explain criteria and agreement terms.
Council and staff said they will request a formal presentation from HFC counsel and bring the corporation into a future meeting to answer detailed questions on tax exemptions, eligibility and local project criteria.
