By EDDIE TREVINO JR.
Cameron County Judge
Cameron County was recently made aware of a lawsuit against the Cameron County Housing and Finance Corporation (CCHFC) via a press conference.
Cameron County is not a named party in the lawsuit, and we have not been given or provided a courtesy copy of the lawsuit. As such, we do not have any information regarding the legal and factual claims made in the lawsuit by Williamson County.
Earlier this year, I responded to Williamson County Commissioner Russ Boles via letter, stating that the CCHFC is a separate entity with its own Board of Directors and legal representation. This letter is included in this press release and speaks for itself.
In it, I addressed him stating that I am in receipt of your recent communication regarding the CCHFC.
County officials are aware of the concerns and issues you have raised. As you know, I have been attending to important family matters and have been unable to respond to your earlier attempts to discuss this matter.
The CCHFC is a separate legal entity and “instrumentality of government.” It has its own Board of Directors and attorney. It has powers enumerated by enabling legislation, including conducting business statewide as opposed to being limited to Cameron County. It was created by the County in 1979. Although it was created by the County, it is not controlled by the County in its day-to-day business operations. The County has the authority to replace the board members at will, with or without cause.
The County has the ability to amend the bylaws but has not micromanaged or interfered with its operation or management. Any County in the state of Texas, which has created a Housing Finance Corporation, has limited authority to interfere with their Corporation’s action if such actions are within their legal authority.
As we understand, a housing finance corporation created under the Act is declared a “public instrumentality” that is not a division of the county but operates on behalf of the sponsoring county. The statute further declares that since the corporation is performing a governmental function, that all of its property, income, and bonds are exempt from state and local taxes.
The corporation has broad authority to purchase, lease, sell, mortgage, and exchange its property and assets. It may borrow money and lend money for corporate purposes. It may conduct studies and generally promote residential development. It may establish rules and regulations concerning the eligibility of loan applicants. It may issue bonds for the cost of residential development and home mortgages in an amount not to exceed the limitation specified in the statute. The attorney general has also ruled that a county cannot guarantee housing corporation bonds.
The Texas Housing Finance Corporation Act was amended in 1989 to add to the powers of such entities the authority to contract with other housing corporations or their agents for general services, in addition to the authority to contract with housing authorities, non-profit entities, and any other “similar entity” as to residential development. Over the years, the Cameron County Housing Corporation has operated throughout the state of Texas lawfully and within the discretion and direction of its Board of Directors based upon the legal counsel of its attorney.
As you are undoubtedly aware, members of the Texas Committee on Urban Affairs submitted RQ-0566-KP on October 2, 2024, with respect to the same concerns you have expressed to us. It appears this Request remains pending. I note that the request itself notes, on page 2 in the second full paragraph, that, “We have been made aware of legal opinions given in support of the legality of such trans-jurisdictional residential developments and the resulting tax exemptions.”
The request continues by noting, “We have also been provided with legal analysis to the contrary.” Clearly, this is a matter of some dispute, but we believe that the Cameron County Housing Corporation has, in all things, operated lawfully.
With respect to your accusations of conflicts of interest within the Board of Directors, I note that the CCHC has its own independent legal counsel. However, I will ask the Cameron County Court’s Civil Legal Division to consider the substance of your letter and the accusations of conflicts of interest.
In conclusion, Cameron County will await a response from the Attorney General and give due consideration to the same; and, in the meantime, I would suggest that that the best avenue to address your concerns and issues is through the Texas Legislature.