For Immediate Release
March 06, 2025
Contact: Eddie Treviño, Jr.
Yesterday, Cameron County was made aware of a lawsuit against Cameron County Housing and Finance Corporation (CCHFC) via press conference. Cameron County is not a named party in the lawsuit, and we have not been given nor 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 Cameron County Housing Finance Corporation 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.
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Letter to Commissioner Boles
January 24, 2025
Russ Boles, Commissioner Precinct 4
Williamson County, Texas
3001 Joe Dimaggio Blvd.
Unit 1300
Round Rock, TX 78665
Dear Commissioner Boles:
I am in receipt of your recent communication regarding the Cameron County Housing Finance Corporation. 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 Cameron County Housing Finance Corporation 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 the 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 have 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 the Request itself notes at 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 that …”We have also been provided with legal analysis to the contrary”. Clearly this is a matter of some dispute but it is our belief 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 ofconflicts 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.
Respectfully,
Eddie Treviño, Jr.
County Judge
Cc: Cameron County Commissioners’ Court
Bill Gravell, Jr., Williamson County Judge