Apartment deals have been canceled, lawsuits have been threatened, and families are caught in the middle.

CORPUS CHRISTI, Texas — A legal fight over affordable housing in Corpus Christi just escalated again.

RELATED: Affordable housing lawsuit rocks Corpus Christi

The Corpus Christi Housing Authority has officially canceled more than a dozen controversial tax abatement agreements that would have removed hundreds of millions of dollars in apartment properties from local tax rolls.

Apartment owners warn the decision could displace families and eliminate affordable housing units. County leaders argue the deals never should have been approved.

The Housing Authority board voted to void 13 agreements approved by a previous board. The deals allowed portions of existing apartment complexes to be designated as low income housing in exchange for removing those properties from the tax rolls.

Apartment owner Joe Bruggeman says the decision puts housing stability at risk.

“We are very disappointed and we are going to take action to keep the deals in place because we think they offer a great value to the community,” Bruggeman said.

City and county officials say the issue is not affordable housing, but how the agreements were approved.

Deputy City Attorney Buck Brice told the board the deals violated state law.

“Last year our City Council passed a resolution finding that these purchase and lease agreements were approved in violation of the Open Meetings Act and other public meeting requirements,” Brice said. “I asked the board today to take action to void these unlawful agreements.”

Before the vote, apartment owners and property managers lined up to warn of immediate consequences for tenants.

Beth Hayes with Summit Apartments said dozens of families could lose their homes.

“If we were removed from this program, there are at least 65 families that would no longer qualify to live at the Summit and we would have to non renew and displace them at the end of their lease term,” Hayes said.

Robert Martinez with Rockstar Management echoed those concerns.

“If these agreements are retroactively voided, the consequences will be significant,” Martinez said. “Reduced rents will no longer be sustainable, resulting in displacement of these 52 families.”

By canceling the agreements, the Housing Authority also exits a lawsuit filed by Nueces County. The county alleges the authority violated the Texas Open Meetings Act for more than a year by approving the deals without proper public notice.

Housing Authority Commissioner Joe McComb said the board had little choice.

“I have to commend the chair lady who was chair at the time acknowledging once it was called to the attention of the board, the new board took action,” McComb said.

But the dispute is far from over.

Bruggeman says he is preparing to take the Housing Authority to court in an effort to reinstate the agreements. He argues similar deals are used by housing authorities across Texas.

The fight comes as Corpus Christi faces a severe housing shortage. Roughly 30,000 people remain on the Section 8 waiting list, while city and county leaders continue to debate how far tax incentives should go to preserve affordable housing.

Whether the canceled deals stay dead or get revived may now be decided by a judge.

Teresa Henderson, Managing Director and Head of Client Success for TrailRunner International, said the Housing Authority’s decision to void the Workforce Housing Opportunities contracts was a “shocking and shameful reversal.”

“The CCHA created the Workforce Housing Opportunities Program, recruited apartment owners to participate, approved the acquisition of 13 properties, and signed contracts that required those properties to provide reduced rents for residents struggling to live in the city,” Henderson said.

Henderson said the decision is based on claims that are currently pending in court.

“The decision is based on empty claims that the organization did not properly notify the public of its plans,” she said. “The CCHA broke its promise to hundreds of working families who depend on the W.H.O. Program, removing a critical safety net and making it possible they will lose their homes.”

Henderson said the authority acted without regard for its obligations to tenants. 

“Today, CCHA has acted without regard for its contractual or legal obligations, or for the hard-working people the organization is duty-bound to assist,” she said.