That's according to industry members and state Rep. Gary Gates, R-Rosenberg, who owns and operates apartments and has built his legislative career around housing and public finance issues. Cities carry sovereign immunity and access to taxpayer funds, letting them outlast developers who work on tight construction timelines and can't afford to stall. Facing code disputes, lawyers often tell homebuilders to just stop work rather than fight it out in court.
The imbalance means cities can enforce questionable rules with little fear of pushback. Gates says the Texas Legislature could respond by expanding the wave of housing reform bills it passed in 2025, this time chipping away at the sovereign immunity that gives cities the upper hand in these standoffs.
For builders and developers, the message is blunt. A courtroom win doesn't matter much if the project dies waiting for it, and that's the kind of victory nobody wants.