The Texas Workforce Housing Coalition (TWHC) and Post WB Apartments, LLC have filed a lawsuit against the Bexar Appraisal District. The lawsuit challenges the constitutionality of House Bill 21 (HB21), which was passed in May 2025. According to the plaintiffs, the bill’s implementation could worsen Texas’s affordable housing crisis and lead to mass evictions of middle- and working-class families.
For many years, Texas law allowed real estate developers to partner with publicly-sponsored Housing Finance Corporations (HFCs) to provide affordable housing in exchange for property tax exemptions. However, HB21 has altered these agreements retroactively, affecting contracts signed under the previous law known as Old Chapter 394. Although HB21 will not take effect for existing developments until January 1, 2027, some appraisal districts have already begun reversing prior approvals based on the new legislation.
“The State of Texas lured billions of dollars worth of investments from real estate developers to build affordable housing for working class Texans with the promise of favorable tax treatment only to now pull the rug out from under those developers,” said Trey Cox, lead attorney from Gibson Dunn & Crutcher representing TWHC. He emphasized that this situation could lead to a breakdown in legal trust and harm essential workers like teachers and nurses who rely on affordable housing.
The plaintiffs are seeking a court declaration that HB21 violates the Texas Constitution and that Old Chapter 394 permitted HFCs to own property outside their jurisdictions. They argue that changing laws retroactively undermines investor confidence and could deter future investments in Texas.
In related actions, TWHC has also filed a petition concerning Williamson County’s lawsuit against Cameron County Housing Finance Corp., which questions CCHFC’s authority regarding property acquisitions outside its county.
The Texas Workforce Housing Coalition is represented by Gibson, Dunn & Crutcher LLP and Chasnoff | Stribling LLP.
Information from this article can be found here.
