HUTTO — A loophole of sorts is threatening to cost the fast-growing Hutto Independent School District more than $1 million in tax revenue in a plan intended to promote affordable housing — not in Williamson County but faraway Cameron County, some 350 miles to the south in Brownsville.
Precinct 4 Commissioner Russ Boles is spearheading efforts to avoid the tax loss but is bracing for a financial hit.
“They (Hutto ISD) face the challenges any growing school district does, and there’s never enough money to go around,” Boles told the Press.
He finds himself racing against time before two apartment complexes are granted tax-exempt status — taking some $2.4 million off the 202425 tax rolls, including $1.2 million from Hutto ISD as the taxing entity with the most to lose.
By entering into a partnership of sorts with Cameron County Housing Finance Corp., the owners of a pair of Round Rock apartment complexes would be guaranteed taxexempt status on those properties.
Joining such a partnership represents the landowners’ promise to provide affordable housing.
The Round Rock properties that could be deleted from the county’s tax rolls are The Sommery at 5540 Sofie Place, a 315,884-square-foot apartment complex built in 2023 that was appraised at $63,850,000 last year and Siena Round Rock at 6531 CR 110, a 160,070-squarefoot complex constructed in 2023 and appraised at $37,715,850.
The Cameron County HFC website details the agency’s mission to finance affordable housing throughout that South Texas county, yet the group increasingly teams up with landowners across the state with the enticement of tax-exempt status.
“Every civilian should have accessibility to adequate, appropriate and affordable housing,” the website reads. “Our housing- assistance initiatives are aimed at helping lowincome families and other underrepresented groups in Cameron County who lack access.”
The pending deal in Wilco is hundreds of miles away from the Cameron County HFC’s focus, which only raises more questions among skeptics such as Boles.
Far from its own backyard, would Cameron County HFC at least be guaranteeing affordable housing in Wilco?
“That’s what they are going to say, but it’s not,” Boles said. “Williamson County has its own HFC and knows what is needed in the community. The CCHFC does not. I suspect most of the CCHFC board members and the Cameron County Commissioners Court have never been to Hutto or these properties.”
Cameron County HFC’s Executive Director Mark A. Yates did not respond to a request for comment.
In addition, there is no need to seek permission from the Williamson County Commissioners Court to allow the deals to pass through, Boles said.
Still, the commissioner recently wrote to Cameron County Judge Eddie Treviño Jr., appealing to his support of local schools that is included in the latter’s biography.
“If you did not know, HISD is a high-growth school district adding more than 600 students annually,” Boles wrote. “(The district) struggles to keep up with the cost to maintain facilities and pay teachers. Additionally, in their issuance of bond debt, they anticipated the levy from these properties before issuing those bonds. Levy that will not be available if exempted.”
None of the other taxing entities were alerted to potential tax exemptions that would undercut their revenue, Boles wrote, including Williamson County and Siena Municipal Utility District No. 1 and No. 2.
Given Treviño’s written support for schools, Boles asked the judge to urge Cameron HFC to secure local commissioners’ approval before proceeding.
“Imagine the disappointment of Brownsville (Independent School District) if a Williamson County HFC exempted a hundred-million dollars from its tax rolls without knowing,” he wrote to the judge in referencing the affected properties’ taxable value.
“There may be other Williamson County properties the Cameron County HFC is in the process of exempting or properties they seek to exempt. I ask that they acquire approval from the Williamson County Commissioners Court before doing so.”
Boles told the Press he had yet to hear back from Treviño.
