Texas Attorney General Ken Paxton has filed another lawsuit in Collin County related to a planned Muslim-centric development with ties to the East Plano Islamic Center.
Paxton’s office announced the lawsuit against Double R Municipal Utility District No. 2A of Hunt and Collin Counties and members affiliated with the board on Monday.
The state’s top prosecutor accused the group of actions “that appear designed to evade state oversight and support the illegal East Plano Islamic Center (’EPIC’) real estate development” through improper appointments and the unlawful expansion of the district’s boundaries.
The development, called The Meadow, 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.
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Community Capital Partners (CCP), a for-profit development group, was formed by members of the East Plano Islamic Center — one of North Texas’ largest mosques — to oversee the project. The development was previously called EPIC City.
In a statement, CCP’s attorney said the filing was the “latest escalation in sustained lawfare” by Paxton and Gov. Greg Abbott, who seek to politicize the project.
The questions raised in the lawsuit are technical and will be resolved, the development group said.
“I will not allow individuals to cheat the system to advance an illegal development and destroy beautiful Texas land,” Paxton said in a statement. “If EPIC City’s developers or operatives are attempting to illegally take over local governmental structures in North Texas, my office will do everything in our power to stop their scheme.”
Municipal utility districts are authorized by the Texas Commission on Environmental Quality to support utilities such as water, sanitary sewer, drainage and flood control for planned residential developments within a certain area.
Developers front the cost, and the district issues bonds to repay the developer for the infrastructure investment. Districts raise revenue through ad valorem taxes on properties within the district to repay bonds, cover maintenance and other related costs.
The Double R district was originally created in 2015, and the original board was installed in 2021. It remained inactive until late 2025, the lawsuit states.
Paxton alleges members of the Double R district met in rural Collin County in September 2025, where the entire board was replaced.
The same day, the new board reviewed a petition from Community Capital Partners to annex the roughly 400 acres where The Meadow would be built. Those members approved the request.
Developers are required to obtain certain permissions from the Texas Commission on Environmental Quality before construction on the project can begin.
Community Capital Partners had not yet received this permission.
In plans initially submitted to Collin County officials in late 2025, the developer stated that the Double R district would provide sewer services.
Collin County officials informed Community Capital Partners earlier this year that the Double R district was not listed as active by state officials.
It also appeared that newly appointed board members didn’t meet state qualifications, meaning they lacked the authority to expand the district’s boundaries.
Board members must own land or be registered to vote within the district.
The new board members — Yaneli Molina, Hatim Mahmoud Yusuf, Nadeem Ashraf Khan, Asim Hussain Khan and Faisal Abbas — were also named individually in the lawsuit.
The Texas Commission on Environmental Quality requested information from Double R showing that the directors met state qualifications.
Documents returned to the state agency showed that the five members lived outside the district and did not appear to have a valid deed for property with the district, the lawsuit alleges.
Paxton’s office is contesting the boundaries of the district and wants the land tied to The Meadow development removed.
The attorney general’s office also wants the court to prevent the district from taking further action and to determine if the board members are qualified to hold their positions, according to the lawsuit.
The developer and their attorney Eric Hudson pushed back against the lawsuit.
The group said the district process was not improvised. Texas-based law firm Winstead has handled the process for the last 18 months, and issues raised in the lawsuit will be resolved on the record.
Hudson said the lawsuit “isn’t about plumbing districts. It’s about lawfare. And courts exist to separate the two.”
“When the Governor and Attorney General repeatedly label a development by religion and then unleash escalating legal attacks to keep it from moving forward, people are right to see what’s happening,” he said. “That looks a lot like religious discrimination dressed up as land use enforcement. The Constitution doesn’t allow government to pick winners and losers based on faith.”
This is Paxton’s second lawsuit tied to the planned project.
In December, he sued the East Plano Islamic Center, Community Capital Partners and others for “engaging in an illegal development scheme that violated Texas securities law.”
That case is ongoing.
Monday’s lawsuit comes after the Department of Housing and Urban Development announced Friday it was launching an investigation into the development over alleged Fair Housing Act violations.
The developers denied the allegations, accusing state and federal agencies of rehashing issues that were previously resolved through a settlement with the Texas Workforce Commission.
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.
The U.S. Department of Justice dropped its brief civil rights investigation into the project in June.
Gov. 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.
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