The Texas attorney general is investigating an Austin political action committee and a local nonprofit organization he alleges could be involved in an electioneering scheme to pass Proposition\u00a0Q, the city property tax hike on the Nov. 4 ballot.<\/p>\n
Attorney General Ken Paxton announced the probe into Foundation Communities<\/a> and the Love Austin PAC Friday afternoon, saying he was seeking \u201cto determine if any laws have been broken related to non-profit compliance with campaign finance laws,\u201d according to a news release<\/a>.<\/p>\n Paxton pointed to a $25,000 pledge the affordable housing nonprofit gave<\/a> to the pro-Prop Q PAC in September, suggesting the donation may have been illegal because the organization could benefit from the additional tax revenue Prop Q would bring in for the city of Austin.<\/p>\n \u201cEvery non-profit, including Foundation Communities, that is unlawfully contributing to an effort to squeeze more taxes out of Texans must immediately stop,\u201d Paxton said in the news release. \u201cIt’s a sham, and it could be illegal.\u201d<\/p>\n Paxton did not specify which laws the organization is accused of violating.<\/p>\n Walter Moreau, the executive director of Foundation Communities, said he is confident the organization has followed all campaign finance laws and is cooperating with the attorney general\u2019s inquiry.<\/p>\n \u201cFor the past 35 years, Foundation Communities has served the people of Austin by creating and maintaining affordable housing and support services for residents who were struggling with the cost of housing, and those experiencing homelessness,\u201d Moreau said in a statement. \u201cOne of the main goals of Proposition Q is to raise funds for this very work, and that\u2019s why we support the initiative.\u201d<\/p>\n Moreau told the American-Statesman he received a so-called “request to examine” from the AG\u2019s office about a week ago. He said investigators were seeking public organizational documents, the nonprofit\u2019s conflict of interest policy and internal communications related to the PAC. The organization is working with an outside attorney to prepare its response, which is due Nov. 3, he said.<\/p>\n Prop Q<\/a>, if voters approve it, would raise Austin property taxes by about 20% to bolster the city\u2019s coffers by $110 million. Much of the new revenue is earmarked for homelessness and housing programs. The Love Austin PAC is the primary political group supporting the measure\u2019s passage.<\/p>\n Under federal tax code<\/a>, nonprofit organizations are prohibited from supporting or opposing any candidate for elective office but it\u2019s generally\u00a0considered OK<\/a> for those organizations to lobby for ballot measures.<\/p>\n