Tax Man, Meet the PFC: Navigating the Texas OpEx Rodeo

In Texas, property taxes and insurance premiums can swallow 25% to 35% of an apartment complex’s entire operating budget. That turns county appraisal district protest season into an Olympic contact sport.

Enter the Public Facility Corporation (PFC)—a structured public-private vehicle where private operators partner with local public entities to trade property tax exemptions for dedicated affordable and workforce units. With modernized legislative guardrails now in place, multifamily sponsors are leaning heavily into structured partnerships and aggressive appraisal protests to safeguard their Net Operating Income (NOI) against rising expenses.