A rare win for taxpayers is sitting on Governor Greg Abbott’s desk—but powerful forces are working behind the scenes to derail it.
House Bill 21 by State Rep. Gary Gates (R-Richmond)has cleared both chambers of the Texas Legislature with bipartisan support and now awaits the governor’s signature. The bill is a badly needed reform of Housing Finance Corporations (HFCs), which for years have been used by politically connected developers to secure near-permanent property tax elimination under the guise of affordable housing. HB 21 reins in this abuse, enforces transparency, and ensures that any tax-exempt projects genuinely benefit low- and moderate-income Texans.
The timing of this reform is no coincidence. It follows a failed legislative effort to pass weaker HFC reforms—like HB 1585, which critics argued protected the status quo and the private interests of lawmakers tied to the HFC industry. That bill, advanced by Rep. Cecil Bell (R-Magnolia) and aligned with Democrat Rep. Rafael Anchía (D-Dallas) (who has financial ties to HFC-backed projects through Civitas Capital Group), was criticized for grandfathering existing tax-free developments and falling short of real reform. In contrast, HB 21 sets clear geographic boundaries for HFC activity, establishes affordability standards, and requires annual independent audits—audits that must be disclosed publicly.
HB 21 ensures developments receiving tax breaks are reserving a meaningful number of units for truly affordable housing and delivering actual rent reductions—not just gaming the system. If developers fail to meet those benchmarks or refuse transparency, they lose their exemptions. It’s a common-sense approach that protects taxpayers from being forced to subsidize luxury housing or enrich private firms under the guise of public benefit.
Yet, despite its broad support and sound policy design, whispers around Austin suggest that some wealthy interests—possibly from out-of-state or with deep pockets in real estate—are heavily lobbying Governor Greg Abbott to veto the bill. Why? Because HB 21 threatens a lucrative racket. Under the current HFC scheme, developers could avoid millions in taxes while offering minimal public benefit. HB 21 ends that.
HB 21 is exactly the kind of reform Texas taxpayers need. It reins in government-sanctioned corporate welfare and ensures tax breaks are not handed out through loopholes and lobbying.
Texans should urge Governor Abbott to sign HB 21 into law. It is the result of principled reform, not political theater. HB 21 delivers clear, enforceable guardrails that will save taxpayers money and restore trust in the system.
Anything less is a victory for the insiders—and a loss for every Texan footing the bill.
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