Pecos Housing Finance Corporation, Pleasanton Housing Finance Corporation, Maverick Housing Finance Corporation, and La Villa Housing Finance Corporation v. City of Arlington
The City of Arlington and City of Fort Worth initiated a lawsuit against several Housing Finance Corporations (HFCs) and Joe Don Bobbitt, the Chief Appraiser of the Tarrant Appraisal District. The cities allege that these HFCs are unlawfully removing properties in Tarrant County from tax appraisal rolls, resulting in significant loss of tax revenue. The core of the dispute revolves around the interpretation and application of the Texas Housing Finance Corporation Act, with cities arguing that HFCs are operating outside their geographical jurisdictions and for non-low-income housing purposes. The HFCs filed pleas to the jurisdiction and motions to transfer venue. The court denied Pecos HFC's plea to the jurisdiction and granted the temporary injunctions sought by both cities, prohibiting HFCs from further acquisitions or tax exemption requests in Arlington and Fort Worth, and preventing the Chief Appraiser from granting such exemptions. The HFCs are now appealing these interlocutory orders.