This week, a group of concerned Texans (i.e. businesspeople & lobbyists) met w/ Rep. Gary Gates to discuss one of the thorniest issues in state politics today: Traveling HFCs, property-tax absolving 🤲 vehicles being used by multifamily players as lifelines on their most troubled deals while putting a permanent dent in city coffers. A new bill to determine the fate of the vehicle is doing the rounds in the legislature, and so now’s cattle-trading time, w/ champions of the loophole squaring up against those who think it’s an abomination.

One enterprising person in the latter camp went to the meeting armed w/ a straightforward but damning tally: a list of properties that had availed of the loophole since late August, adding up to ≈ $2.7B in assessed value and $55M in property taxes in ‘24. Those properties, many of them w/ household-name sponsors, are now off the tax rolls in cities such as Dallas, Houston, and Austin, potentially forever, so the tally was an illustration of the damage that’s already been done.

But even spicier was the 2nd piece of the analysis, a copy of which was shared w/ The Promote: someone had figured out the naming conventions used by new Traveling HFC entities, sponsored by far-flung jurisdictions such as Pecos County, Maverick County & Pleasanton. That tally shows hundreds of in-progress Traveling HFC entities tied to properties in major cities, illustrating the mad rush to get the tax break while the gettin’ is good. 🏇 🏇 🏇

The message to lawmakers was clear: Fix this now, or be forever screwed 👇