Texas Wins Suit, Abides By Fair Housing Act

AUSTIN – A federal district court ruled today that the Texas Department of Housing and Community Affairs (TDHCA) complied with the Fair Housing Act concerning its distribution of low-income housing tax credits.

The plaintiff in the case, Inclusive Communities Project, Inc. (ICP), argued that TDHCA violated the Fair Housing Act by awarding too many tax credits to minority communities.

The district court previously rejected ICP’s claim that TDHCA engaged in intentional racial discrimination.

Today’s ruling rejects ICP’s disparate-impact claim, finding that ICP failed to prove that any policy or practice of TDHCA caused a racial disparity in the distribution of tax credits.

This is the most recent decision in a lengthy fair housing suit that was heard by the United States Supreme Court last year before being sent back to the district court.

In today’s decision, the district court relied on language from the Supreme Court’s opinion that limited the use of disparate-impact claims under the Fair Housing Act.

The district court applied the “robust causality” requirement that was mandated by the Supreme Court, held that ICP had not met that heightened standard, and dismissed ICP’s lawsuit.

To view a copy of the opinion, click here: https://www.texasattorneygeneral.gov/files/epress/ICPOpinion.pdf?cachebuster:78