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Affordable-Housing Coalition Files Lawsuit Over Unconstitutional Housing Reform

The coalition argues that HB21's retroactive tax changes violate contracts and Texas law, risking eviction of working families and destabilizing the affordable housing market, advocates warn.

  • The Texas Workforce Housing Coalition and Post WB Apartments, LLC filed a lawsuit on September 9, 2025, in Cameron County District Court against the Bexar Appraisal District challenging House Bill 21's constitutionality.
  • HB 21, passed in May 2025, retroactively changed laws under Chapter 394, impairing existing contracts and closing a loophole used by traveling housing finance corporations.
  • The lawsuit seeks to restore previous tax exemptions, contends that HB 21 unlawfully disrupts existing contracts under the Texas Constitution, and highlights that appraisal districts have begun rescinding exemptions ahead of the law’s 2027 implementation date.
  • Gibson Dunn Partner Trey Cox emphasized that Texas attracted substantial real estate investments by promising favorable tax incentives to developers of affordable housing, but has now undermined those investors by reversing those commitments.
  • The suit warns that HB 21’s implementation will worsen Texas’ affordable housing crisis, potentially causing mass evictions and forcing essential workers from their homes.
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Affordable-Housing Coalition Files Lawsuit Over Unconstitutional Housing Reform

The Texas Workforce Housing Coalition is suing the Bexar Appraisal District, alleging violations of the Texas Constitution in the implementation of HB21 housing reforms Lawsuit says unconstitutional attempts to revoke properties' tax-exempt status will exacerbate State's affordable-housing crisis and spark mass evictions of middle- and working-class families AUSTIN, Texas, Sept. 9, 2025 /PRNewswire/ -- The Texas Workforce Housing Coalition ("TWH…

·New York, United States
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Benzinga broke the news in New York, United States on Tuesday, September 9, 2025.
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