Civic Insights with David Billings
Affordable housing is a top priority in the Texas GOP platform, promising attainable homeownership and zoning reform. Yet, as the Dallas Morning News highlighted the 89th Legislative Session, Senate Bill 840 (SB 840)—intended to expand apartment and mixed-use development in large cities—has not translated into meaningful solutions on the ground.
SB 840 sought to open commercial areas to higher-density housing to ease supply shortages. However, the Morning News observed: “Texans deserve more choices, not clever zoning tricks that leave workers and families scrambling for options.” Cities such as Irving and Frisco have found ways to comply with the letter of the law while undermining its intent. Irving now mandates luxury eight-story buildings, inflating costs, while Frisco reclassified commercial land as heavy industrial to sidestep the law entirely.
So, what is the “Big Disconnect”?
Simply put, the state legislature’s priorities often clash with local realities. Since the 86th Legislative Session, local officials have faced pressure from a vocal minority to deny residential development projects, which can lead to declining sales tax revenue. Developers, in turn, use PACs and lobbyists to influence Texas law, steadily eroding home-rule authority and local decision-making.
This isn’t a partisan issue—it’s about practical governance. Every city, regardless of size, must manage growth, infrastructure, and municipal services. Yet recent legislative sessions have often prioritized lobbyist interests over cities’ needs in the name of “affordable housing” and statewide zoning, while simultaneously restricting the very tools local governments rely on for fiscally responsible growth. Lawmakers may pass laws and zoning reforms intended to support affordable housing, but these actions often leave municipalities with few ways to advocate for their citizens’ interests—forcing local leaders to navigate poorly written state mandates with one hand tied behind their back.
The real impact of lobbyists
From June 1–30, 2024, $480 million was spent by lobbyists and special interest groups to influence state legislation. Notably:
- Texas Realtors PAC: $6.6 million
- Associated General Contractors PAC: $0.9 million
- Texas Land Title PAC: $0.76 million
- Various Texas apartment associations: over $1 million
For decades, these groups have sought to limit annexation authority, weaken oversight of extraterritorial jurisdictions (ETJs), dictate building standards, and implement statewide zoning for larger cities. Meanwhile, MUDs—marketed as affordable housing solutions—expand beyond city limits, often leaving families with high property taxes, utility fees, and separate fees for fire and police services.
A real-world example
In Josephine (Collin & Hunt Counties), the city provides water, sewer, sanitation, police, and fire services to MUD residents outside city limits on a cost-of-service basis. While this ensures existing residents do not subsidize new subdivisions, tensions remain: MUD residents argue fees are too high, while the city notes that MUD taxes only repay developer bonds and do not contribute to funding essential city services.
Legislative realities
Zoning workarounds in Frisco and Irving show how SB 840 can be undermined. Beyond this, towns like Fate, Rockwall, Heath, McLendon-Chisholm, and Josephine face a broader challenge: Austin sets priorities without understanding local conditions or expectations. Developers profit, the state touts affordability, and cities are left to fund infrastructure and essential services without adequate authority or revenue.
The state must recognize that cities face unique challenges that lawmakers cannot fully address or understand. All Texans deserve equitable representation in Austin, and state legislators cannot always advocate for the specific circumstances of each municipality.
SB 9 (89R), which caps city property tax increases, compounds the problem, forcing local governments to make difficult choices about fire stations, road maintenance, and police staffing.
No elected official wants to openly oppose GOP leadership, but sidelining cities in decision-making widens the gap between state policy and voters’ needs. Local leaders—regardless of party—balance budgets, approve water lines, fix roads, provide emergency services, and answer 911 calls. Ignoring the cities hurts affordability but stifles economic development in Texas.
As the Morning News editorial noted: “Renters don’t need a yoga room; they need more housing options at reasonable prices.” I would add: Texans need fiscally sound, functional cities. Without strong municipal governance, state affordability goals are largely an illusion.
The lesson
Local governance matters. Housing affordability matters. Fiscal flexibility matters. The “Big Disconnect” is real, and Austin’s limits on local decision-making are real. Until the state engages meaningfully with cities, the burden will continue to fall on local communities to navigate statewide mandates while trying to meet each city’s unique needs.
About the Author
David Billings, retired Mayor of Fate, has served the community for over a decade. A longtime business leader in the telecommunication industry, Navy veteran, and resident of Rockwall County, he brings both professional and civic experience to his writing on government, budgeting, and local economics. He is a graduate of Leadership Rockwall, North Texas Commission Leadership Program, active in several Rockwall County non-profits boards, and the American Legion.
He is passionate about civic involvement in local government, maintaining transparent governance and thoughtful strategic planning to preserve a bright future for the regions.
