(Texas Scorecard) – A Democrat lawmaker is under scrutiny at the Texas Capitol after pushing legislation that could benefit his own private real estate firm—while taxpayers are left footing the bill.
State Rep. Rafael Anchía of Dallas filed a bill this session that appears to crack down on Housing Finance Corporations, or HFCs—entities used by developers to secure long-term 99-year property tax exemptions under the guise of affordable housing. But while Anchía claims to be reining in these deals, his own firm, Civitas Capital Group, profits directly from them.
Civitas has used HFCs to develop at least six housing projects across Texas. Due to their tax-exempt status, those developments represent more than $167 million in property value shielded from taxation, costing local governments millions in revenue. Anchía has not commented on the apparent conflict of interest this presents.
According to a report from Texans for Fiscal Responsibility, Anchía’s firm “openly boasts about its ability to uncover opportunities that others miss—often involving public-private partnerships and regulatory arbitrage.” The group points out that while these arrangements may be technically legal, “the ethical concerns are glaring.”
In February, Anchía filed House Bill 2937 which proposes limiting Housing Finance Corporations to operate only within the boundaries of the jurisdictions that created them—effectively stopping them from cutting tax-free housing deals in areas where local voters have no say. Just weeks later, Republican State Rep. Cecil Bell (Magnolia)—who chairs the committee where that bill would be heard—filed an identical piece of legislation, House Bill 1585.
Despite being filed after Anchía’s, Bell’s version was assigned a lower number and fast-tracked for a hearing. That kind of maneuver, TFR notes, “could not have been given the low bill number it received without the signoff of Speaker Dustin Burrows.”
On its face, the bill looks like an effort to reform a broken system, but critics say it’s all part of a calculated strategy as most of Civitas’ developments would not be affected by the bill. Texans for Fiscal Responsibility calls it “orchestrated political theater, designed to appear as reform while shielding insider interests.”
Additionally, the legislation includes a carve-out: neither bill applies retroactively. That means Civitas’ existing projects—worth more than $167 million—would remain untouched, while the bill effectively locks out new competitors.
“This is not true reform,” TFR’s report reads, “but rather a strategic effort to protect entrenched interests and maintain the status quo of tax-exempt perks for politically connected developers.”
During the committee process, State Reps. Shelley Luther, David Lowe, and Terri Leo-Wilson voted against the bill. But they were outnumbered by others—including Republicans Carl Tepper and David Spiller—who joined Democrats to advance it.
The legislation has not yet been put on a calendar for a full House vote.
Anchía did not respond to a request for comment.