Title
Consider and take action on a resolution establishing the City’s default policy of non-approval for housing finance corporation projects within League City (Mayor Long)
Background:
Approval of this item will establish the City’s default policy position of non-approval for proposed future projects involving housing finance corporations within the City.
Prior Practices and Concerns:
In recent years, housing finance corporations organized outside of the City have proposed or approved multifamily housing developments located within the City’s jurisdiction. In some instances, these entities were not geographically connected to the City and acted without direct local oversight, yet were able to pursue tax-exempt financing structures that could reduce or eliminate property tax obligations. As a result, such developments could utilize City services and infrastructure while contributing little or nothing to the City’s tax base, raising concerns regarding local control, fiscal impacts, and consistency with City planning and development standards. These issues were not unique to the City and were experienced by municipalities across Texas.
2025 Legislative Fix:
In response, the Texas Legislature adopted House Bill 21 in May 2025, amending Chapter 394 of the Texas Local Government Code. The legislation requires that a housing finance corporation obtain a formal resolution of support from the governing body of the municipality in which a proposed development is located when the corporation is organized outside that municipality. This change was intended to restore local authority and ensure that municipalities have a direct role in approving or disapproving such projects.
League City’s Default Policy:
This resolution establishes a general default policy position of non-approval for housing finance corporation developments within the City. It is intended to eliminate any assumption of implied or automatic support for such projects. At the same time, the resolution p...
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