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Hays County asks appraisal district to pause tax exemptions and authorizes litigation over out-of-county housing finance conversions
Summary
The Hays County Commissioners Court voted to ask the Hays Central Appraisal District to delay determinations on tax-exempt status for properties acquired by nonlocal housing finance corporations and authorized the county to join litigation and retain outside counsel over the issue.
The Hays County Commissioners Court on April 22 voted unanimously to ask the Hays Central Appraisal District to hold off on determining tax-exempt status for several multifamily properties purchased by out-of-county housing finance corporations and to pursue legal action if necessary.
The court instructed the county's chief appraiser to delay any final tax-exemption determinations while officials await further legal guidance, including an opinion requested from the Texas Attorney General. Commissioner Debbie Inglesby said the properties under review had been removed from local tax rolls and that the county stood to lose significant revenue.
"There are five properties currently at issue — three in San Marcos and two in Kyle — and based on 2024 numbers this would represent over half a million dollars in county tax revenue," Jordan (staff member) told the court, noting the figure did not include impacts to cities or school districts. Commissioner Inglesby and other court members said they were not opposing affordable housing but were concerned about the process and the fiscal impact when out-of-county entities seek tax-exempt status without local coordination.
The court also moved to engage outside counsel for litigation related to nonlocal housing finance corporations. The motion authorized the Hays County Criminal District Attorney's office to retain Armbrust & Brown PLLC for representation and to join existing litigation as needed. Judge Ruben Becerra and the commissioners voted in favor of both actions.
Court documents attached to the agenda mention ongoing litigation in other jurisdictions and a pending request for an Attorney General opinion. County staff told the court the properties at question would, if granted exempt status, reduce the taxable base relied on for public safety, infrastructure and other county services.
The court said it will continue coordinating with cities, school districts and the county attorney to assess next steps and will consider further legal and legislative remedies.
Votes and next steps The court approved the letter asking Hays Central Appraisal District to delay determinations, and separately authorized engaging outside counsel and joining litigation related to nonlocal housing finance corporations. Officials said additional action could follow after receipt of the Attorney General's opinion and further legal analysis.
