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Denton County asks appraisal district to pause tax exemptions tied to "traveling" housing finance corporations
Summary
On May 20, 2025 the Denton County Commissioners Court unanimously approved sending a letter to the Denton Central Appraisal District requesting a pause on property tax exemptions tied to out‑of‑jurisdiction housing finance corporations and approved sending a supporting letter on House Bill 21 to the governor.
Denton County Commissioners Court on May 20 approved sending a letter to the Denton Central Appraisal District asking it to pause any exemptions associated with so‑called "traveling" housing finance corporations and authorized staff to express county support for House Bill 21 to the governor.
County legislative presenter Brooke Hambrick told the court the bill, authored by Rep. Gates, would prevent housing finance corporations (HFCs) formed by one city or county from providing tax exemptions for developments located in other jurisdictions without local approval. Hambrick said the bill had passed both chambers and was on the governor's desk and that the county was concerned about potential 2025–26 impacts to its tax roll if exemptions continued to be processed now.
Hambrick said the county has seen recent purchases by HFCs of multifamily properties in Lewisville, Little Elm and Dallas within Denton County and that the city of Lewisville has filed a lawsuit challenging the practice. She noted a pending attorney general request and multiple lawsuits nationwide that could clarify whether those HFC exemptions are lawful. "It ends this misuse of the loophole," Hambrick said of the bill, adding that HFCs would still be able to own property but would need local city or county approval to receive exemption benefits.
Commissioners voted unanimously to send the requested letter to the Denton Central Appraisal District and to support the bill. The motion to approve the letters was moved by Commissioner Lisonbee and seconded by Commissioner Fautner; the court recorded the motion as approved unanimously.
Why it matters: Hambrick and commissioners said removing unapproved exemptions preserves the county tax base and avoids shifting tax burdens to municipalities and school districts. Hambrick warned that exemptions processed now — before final legal or administrative clarification — could reduce assessed value for 2025 and 2026 tax rolls.
Next steps: The county will transmit the letter to the Denton Central Appraisal District asking it to pause related exemptions pending guidance from the attorney general or court rulings and will send a separate letter expressing support for House Bill 21 to the governor.
