The Department of Housing and Urban Development has launched an investigation into The Meadow, a planned Muslim-centric development in northern Dallas-Fort Worth, over possible violations of fair housing laws.
The agency announced Friday that its Office of Fair Housing and Equal Opportunity would investigate groups behind the project, EPIC Real Properties, Inc., and Community Capital Partners, LP, for potential “religious and national origin discrimination.”
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The development, previously called EPIC City, is expected to feature more than 1,000 homes, a K-12 faith-based school, a mosque, elderly and assisted living, apartments, clinics, retail shops, a community college, and sports fields built on 402 acres in Collin and Hunt counties, roughly 40 miles northeast of downtown Dallas.
Community Capital Partners, a for-profit development group, was formed by members of the East Plano Islamic Center (EPIC) — one of North Texas’ largest mosques. The project was previously called EPIC City.
D-FW Real Estate News
Developers say the HUD investigation involves matters that were previously resolved through a binding settlement with the Texas Workforce Commission last year.
“It is deeply concerning the East Plano Islamic Center may have violated the Fair Housing Act and participated in religious discrimination,” HUD Secretary Scott Turner said in a statement.
“I will not stand for illegal religious or national origin discrimination in housing and will ensure that this matter receives a thorough investigation so that this community is open to all Texans.”
In a news release, HUD said it received a complaint from the Texas Workforce Commission “detailing a large-scale pattern of religious discriminatory conduct.”
Allegations include:
Marketing materials that promoted the development as an exclusively ‘Muslim community’ and that it would represent ‘the epicenter of Islam in America.’Discriminatory financial terms that required lot owners to subsidize a mosque and Islamic educational centers.A “bias sales mechanism” consisting of a two-tier lottery system for lot sales, which granted lot access to Tier One buyers.
Community Capital Partners has repeatedly denied claims of discrimination, touting the planned development as open and inclusive. The group has said it will follow state and federal housing laws.
Developers are working to submit project plans to county officials for approval.
Representatives for the developer said the investigation doesn’t prove wrongdoing and rehashes the same allegations made previously by Texas officials.
“We do not discriminate. We do not seek exclusivity. We support equal housing opportunity and religious freedom, both of which are protected under federal and Texas law,” the group said in a statement.
“We will cooperate with lawful investigative processes. We will also vigorously defend our rights and insist that government officials honor their agreements and follow the law.”
Community Capital Partners said the issue was only elevated to national authorities after the company sought judicial relief against the state.
The development group said it filed a lawsuit in Travis County after they refused to comply with the previous agreement.
Attempts to contact the Texas Workforce Commission (TWC) were not immediately returned. The agency is the entity responsible for enforcing the Fair Housing Act in Texas.
Community Capital Partners reached a settlement with the state commission in September.
As part of the deal, the developers were required to complete a housing training program. The firm also agreed to review and revise marketing and sales materials to ensure they are nondiscriminatory.
Community Capital Partners is also required to develop and implement fair housing policies. Those policies must be reviewed by the state commission.
The developers allege that the TWC issued a second complaint, instead of honoring the settlement.
“We filed suit in Travis County to require the state to follow the law and enforce the agreement after it was signed,” said Eric Hudson, the developer’s attorney. “It was only after we sought judicial relief and a hearing was set, did this matter get referred to HUD. That sequence of events raises serious due process concerns.”
This latest investigation comes after Texas Attorney General Ken Paxton filed a civil lawsuit in Collin County against developers, alleging they engaged “in an illegal development scheme that violated Texas securities law.”
That case is ongoing.
The U.S. Department of Justice dropped a civil rights investigation into the project in June.
Gov. Greg Abbott has directed multiple state agencies to investigate EPIC and its affiliated entities. Abbott said in a December social media post that four agencies continue to investigate the planned development.