The overview
PFCs and HFCs are entities formed with the intent of promoting affordable housing opportunities. Properties owned by these entities are not taxable, which can end up negatively impacting municipalities, attorney Jason Rommel said at the meeting.
The new ordinance will establish certain regulations surrounding the formation and operation of these entities within city limits, with the intent of protecting city interests, according to city documents.
Key points of the ordinance include requiring City Council approval for formation of these entities, addressing concerns related to the entities tax-exempt status, and defining how the city may enforce regulations laid out in its code of ordinances, in relation to these entities.
Texas legislation was passed in 2023 that aimed to curb problems with PFCs, and current legislation addressing HFCs is pending, Rommel said.
“This ordinance says you cannot do these things unless we the city say you can. It just gives us the ability to have a seat at the table and decide whether or not whatever project it is is good for the city of Bee Cave,” Rommel said.
What they’re saying
“Generally, [HFCs and PFCs are] used for workforce housing. Just because we’re passing this ordinance doesn’t mean that we’re against workforce housing,” council member Andrea Willott said. “It’s just that as we looked into the type of financing it is and how the city would be disadvantaged by the loss of the property tax, we decided to write this ordinance, and I’m completely for it.”
Interim council member Blake Sbrocco agreed with Willott while emphasizing the city’s support for workforce housing.
“It’s important that we reiterate that we most definitely want to welcome people that want to live here,” Sbrocco said. “But at the same time this ordinance offers an opportunity to button up any potential loopholes as well as give the city a seat at the table, as well as our community residents, which I think is incredibly important.”
What else?
The creation of workforce housing in Bee Cave remains an ongoing discussion topic for City Council.
In February 2024, Bee Cave began searching for development proposals to create the city’s first workforce housing project, according to previous reporting by Community Impact.
At a council meeting held July 9, those proposals were denied, and City Council members voted unanimously to create a new request for workforce housing with updated criteria.
The city had previously considered a city-owned property, the Skaggs Tract, as a location for a workforce housing project, though that property was later agreed upon as a suitable location for a new city library building at a meeting held Dec. 10.
At that meeting, Mayor Kara King stated that the city was still evaluating workforce housing opportunities.
