HB 21

"🚨 What Really Happened with Texas HB 21 (2025) – The Housing Bill That Got Hijacked

At first glance, HB 21 looked like a win for Texans. It promised to crack down on out-of-control housing finance corporations (HFCs) that were building tax-exempt “affordable housing” with no real oversight. It was supposed to restore local control, bring transparency, and make sure these developments actually served low- and middle-income families.

That’s how it started. But that’s not how it ended.

After going through the Senate, HB 21 was quietly rewritten to open up new legal loopholes that benefit developers, consultants, and politically connected firms—while pushing the real costs onto everyday Texans.

Here’s what the final version of HB 21 actually does:

👉 Lets developers claim property tax exemptions BEFORE they meet any affordability promises.
They get up to two full years of tax breaks—even if they haven’t capped rents or housed a single low-income family.

👉 Creates a “pay-to-play” loophole.
If they can’t (or won’t) meet rent caps, they can just pay cash to local government and still keep their tax perks.

👉 Hands oversight power to a single unelected agency: TDHCA.
There’s no role for the State Auditor or Legislative Budget Board. The audits that determine compliance? Developers hire their own auditor.

👉 Expands who can benefit.
It’s not just public housing agencies anymore. Private developers and public-private “users” now qualify for the same tax breaks—just for being involved in the deal.

👉 Tenant protections? Mostly symbolic.
They sound good, but the final version still allows eviction for vague reasons and leaves renters with little recourse.

And here’s the part most people don’t see:
This bill started out strong. It was introduced as a way to close loopholes and protect local communities. But by the time it got through the Senate, it had been quietly rewritten to do the opposite.

This is how policy corruption works in Texas:
A good bill enters the Capitol.
A gutted bill leaves the chamber.
And voters are left holding the bag—while developers cash in on public exemptions.

HB 21 isn’t about housing. It’s about power.
It shifts control away from voters and local governments and gives it to a small circle of private interests and state agency insiders—with little to no oversight.

If you care about affordable housing, public school funding, or local accountability—you should care about how this bill passed.

Read the fine print. Watch the amendments. Don’t just trust the headline.

This was a red bill in disguise.
And unless more Texans start paying attention, it won’t be the last."