Urgent: Court Hearing on Thursday

Unless legal action is taken now, this will cost taxpayers $1.76 million (for PISD alone).

Jul 15, 2025

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For those of you who attended last Thursday’s general meeting/social, this provides clarity on the court date this Thursday, 7/17/2025, where PISD and the City of Plano have filed suit.

Bottom Line - This situation highlights a loophole in Texas housing and tax law that allowed outside counties to claim ownership of high-value property in unrelated cities, depriving schools and cities of millions in tax revenue—without providing any real local benefit. Estimated 2025–26 revenue loss to Plano ISD alone is $1.76 million.

This issue is currently playing out in Plano ISD and City of Plano. A court hearing is set for Thursday, July 17:

2:30 PM
471st District Court
Collin County Courthouse
2100 Bloomdale Rd. (Russell A. Steindom Courts Bldg.)
McKinney, TX 75071

Currently Texas law allows abuse of property tax exemptions by traveling Housing Finance Corporations (HFCs). These are entities created by local governments—often in poorer counties—but which operate (and claim tax-exempt status) in wealthier areas like Plano, without local approval.

A new law, HB 21, signed May 28, 2025 will rein in such abuses via a sunset clause. The New Law will ‘sunset’ (stop) the abuses/exceptions effective January 1, 2027, which still gives these HFCs ~18 months to continue UNLESS the court agrees to extend the block through a Temporary Injunction.

This loophole lets private developers avoid paying millions in local property taxes, which would otherwise fund schools, cities, counties, and colleges. The burden then shifts to other taxpayers or results in reduced public services.

Housing Finance Corporation (HFC):

A quasi-public entity allowed under Texas Local Government Code Chapter 394.
Can acquire, develop, or own housing, using tax-exempt status if it's for a “public purpose.”
Historically meant to help provide affordable housing locally.

Traveling HFCs:

HFCs that leave their home county or city and develop or acquire properties in other jurisdictions, often without the host city's permission.
These projects are 100% property-tax exempt, even though local residents and services bear the cost.

This money would otherwise fund schools, roads, public safety, and community colleges.

Total estimated 2025–26 revenue loss to Plano ISD alone: $1.76 million.
There are at least 5 traveling HFC properties in Plano ISD and possibly more in Collin County.

The New Law Sunsets Existing Exemptions: Jan. 1, 2027 unless reapproved locally.

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Plano, TX 75075

Urgent: Court Hearing on Thursday

Unless legal action is taken now, this will cost taxpayers $1.76 million (for PISD alone).

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