HomeMy WebLinkAboutResolution 6113-06-2025A RESOLUTION
No. 6013-06-2025
AUTHORIZING THE CITY ATTORNEY TO INTERVENE IN
CAUSE NO. 348-363561-25, ARLINGTON V. PECOS HOUSING
FINANCE CORPORATION, A TEXAS NONPROFIT
CORPORATION; JOE DON BOBBITT, IN HIS OFFICIAL
CAPACITY AS CHIEF APPRAISER OF TARRANT APPRAISAL
DISTRICT V. CITY OF FORT WORTH, 348th DISTRICT COURT,
TARRANT COUNTY, TEXAS, TO ENJOIN PECOS,
PLEASANTON, LA VILLA, MAVERICK COUNTY, AND
CAMERON COUNTY HOUSING FINANCE CORPORATIONS
(HFCS) AS WELL AS ANY OTHER TRAVELING HFC THAT
OWNS PROPERTY IN FORT WORTH FROM PURCHASING
PROPERTIES IN FORT WORTH AND TO ENJOIN THE
TARRANT APPRAISAL DISTRICT, FROM ISSUING ANY
EXEMPTIONS FOR PROPERTIES OWNED BY THESE HFCS,
WHEREAS, traveling Housing Finance Corporations (HFCs) operate beyond their
jurisdictions in contravention of state law; and
WHEREAS, traveling HFCs takes property off the tax rolls in the jurisdictions
where their projects are located; and
WHEREAS, 1~ort. Worth has discovered the existence of at least thirty-three
traveling HFCs in Fort Worth that have a combined appraised value of over S 1 billion;
WHEREAS, some of these properties owned by Pecos HFC, Pleasanton HFC,
La Villa HFC, Maverick County HFC, and Cameron County HFC have not been
granted exemptions yet;
WHEREAS, because of the urgent need to strip the granting of exemptions to
Pecos HFC, Pleasanton HFC, La Villa HFC, Maverick County HFC, and Cameron
County HFC the City filed Cause No. 348-363561-25 styled City of Arlington v. Pecos
Housing Finance Corporation, a Texas Nonprofit Corporation; Joe Don Bobbitt, in his -
Official Capacity as Chief Appraiser of'Tarrant Appraisal District v. City gf'Fort Worth.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY Of f'O T `i'ORTH, TEXAS, THAT:
The City Attorney is authorized to intervene in Cause No. 348-363561-25,
associated court costs are similarly authorized, the lawsuit styled City ofArlington v. Pecos
Housing Pinance Corporation, a Texas Nonprofit Corporation; Joe Don Bobbin, in his
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City of Fart Worth, Texas
Mayor and Council Communication
DATE: 06/24/25 M&C FILE NUMBER: M&C 25-0570
LOG NAME: 12TRAVELING HFC LAWSUIT
SUBJECT
(ALL) Adopt the Attached Resolution to Ratify a Lawsuit, Cause No. 348-363561-25, City of Arlington v. Pecos Housing Finance Corporation, a
Texas Nonprofit Corporation; .foe Don Bobbit, in his Official Capacity as Chief Appraiser of Tarrant Appraisal District v. City of Fort Worth, to
Enjoin Pecos, Pleasanton, La Villa, Maverick County, and Cameron County Housing. Finance Corporations as Well as Any Other Traveling.
Housing Finance Corporation that has Property in Fort Werth from Purchasing Properties in Fort Worth and to Enjoin the Tarrant Appraisal District
from Exempting Fort Worth Properties Owned by Traveling Housing Finance Corporations
RECOMMENDATION'
It is recommended that the City Council.-
1 . It is recommended that the City Council adept the attached resolution and authorize the ratification of a lawsuit the City Attorney's Office has
filed, Cause No. 348-363561-25, City of Arlington v. Pecos Housing Finance Corporation, a Texas Nonprofit corporation; Joe Don Bobbilt, in
his official capacity as Chief Appraiser of Tarrant Appraisal District v. City of Fort Worth, to enjoin Pecos, Pleasanton, La Villa, Maverick
County, and Cameron County Housing Finance Corporations and any other traveling housing finance corporation that has property in Fort
Worth from purchasing properties in Fort Worth and to enjoin the Tarrant Appraisal District from exempting Fort Worth properties owned. by
these Housing Finance Corporations.
DIS.C:USS1ONi:
The City recently learned that the Pecos Housing Finance Corporation (HFC), Pleasanton HFC, La Villa HFC, Maverick County HFC, and
Cameron County HFC have been unlawfully removing Fort Worth based properties from Tarrant County tax appraisal rolls resulting in the loss of
millions of dollars in real property value from the local tax base. In short, a handful of tiny public corporations, some located hundreds of miles away
in towns with no connection to Fort Worth, have drastically reduced Fort Worth's yearly tax revenue while they rake in undeserved fees and profits
from Fort Worth based rental properties. HFCs that operate outside of their jurisdictions are known as traveling HFCs.
Fort Worth has intervened in a lawsuit brought by the City of Arlington to ask the Court to. halt the Defendant HFCs' unlawful behavior before they do
any further irreversible damage to Fort Worth's tax base, and to stop the Chief Appraiser of the Tarrant Appraisal District from granting tax
exemptions requested by the Defendant HFCs for any Fort Worth based properties.
Estimate of filing fees expected to be less than $2,000.00. Funding is budgeted in the Lawsuit Expenses account within the Risk Financing Fund
for the Human Resources Department.
A Form 1295 is not required because: This M&C does not request approval of a contract with a business entity.
FISCAL. INFORMATION 1 CERTIFICATION:
The Director of Finance certifies that upon approval of the recommendation, funds are available in the current operating budget, as previously
appropriated, in the Risk Financing Fund. Prior to an expenditure being incurred, the City Attorney and Human Resources Departments have the
responsibility to validate the availability of funds,
Submitted for Citv Manaaer's Office tt•. ALL ACMs 6122
Orlainatina Business Unit Head: Leann Guzman 8973
Additional Information Contact: Leann Guzman 8973