​On Friday, Texas Attorney General Ken Paxton announced his office is looking into the Love Austin PAC and the nonprofit Foundation Communities.

AUSTIN, Texas — The state of Texas is launching an investigation into two groups that are pushing to get a property tax rate increase on Austin’s ballot passed.

On Friday, Texas Attorney General Ken Paxton announced his office is looking into the Love Austin PAC and the nonprofit Foundation Communities to determine if any laws have been broken related to nonprofit compliance with campaign finance laws.

Love Austin supports Proposition Q, which would raise property taxes to generate roughly $110 million for the city of Austin this fiscal year. City staff say that money would fund vital programs.

According to a campaign finance report filed on Oct. 6, Foundation Communities donated $25,000 to Love Austin in September. Foundation Communities has contracts with the city to run certain programs and owns more than two dozen affordable housing developments in the city.

Paxton has accused Foundation Communities’ donation of being a “sham” that could be illegal, writing that his office will determine if government-funded organizations are spending money on a push to raise the tax rate in exchange for possible future benefits.

Joe Cascino with the Love Austin PAC told KVUE they will respond to the AG’s investigation “in a timely manner.”

KVUE also reached out to Foundation Communities for comment on the investigation. We have not yet heard back.