In a recent investigation, the U.S. Department of Housing and Urban Development (HUD) found that a Texas state agency diverted $1 billion intended for disaster mitigation away from Houston and nearby communities of color following the devastation caused by Hurricane Harvey in 2017. In another case, HUD discovered that a homeowners association near Dallas implemented rules to evict poorer Black residents from their community.
Officials determined these incidents to be significant violations of civil rights laws, prompting litigation considerations against the accused parties during Joe Biden’s presidency. However, under the Trump administration, HUD reportedly took quiet steps to potentially end both cases, according to three knowledgeable officials.
These measures are considered unprecedented, as current and former HUD officials noted that the agency has never retracted cases of this scale after confirming evidence of discrimination. As a result, these long-standing high-profile investigations remain unresolved, leaving alleged offenders without governmental penalties and victims without compensation.
Doris Brown, a Houston resident and co-founder of a community group that filed the Harvey complaint, expressed disappointment, reflecting on the potential aid that could have helped those still suffering flood damage in predominantly Black neighborhoods.
In January, HUD forwarded the Houston case to the Department of Justice (DOJ) to prepare for a federal lawsuit following the discovery of discrimination evidence. However, by February, the agency withdrew its referral without providing a public explanation. The same occurred with the Dallas case shortly thereafter.
This development has raised concerns about the reduction of civil rights enforcement under President Donald Trump and HUD’s Secretary Scott Turner, a Texas native. Sara Pratt, a former HUD official involved in both Texas cases, criticized the administration for dismantling fair housing enforcement and education systems, suggesting that the federal government no longer prioritizes housing discrimination issues.
HUD spokesperson Kasey Lovett countered this perspective, citing possible precedents for the rescinded referrals, which aimed to gather more facts and reevaluate the investigations. Lovett stated, “We’re taking a fresh look at Biden Administration policies, regulations, and cases. These cases are no exception,” emphasizing HUD’s commitment to upholding both the Fair Housing Act and the Civil Rights Act against housing discrimination.
The DOJ did not comment on the situation.
The Harvey case revolves around a $4.3 billion grant allocated to Texas for improving drainage, flood control, and other storm mitigation measures. HUD’s investigation revealed that the Texas General Land Office (GLO) allocated the initial $1 billion in a manner excluding vulnerable communities such as Houston and Harris County, which had experienced significant hurricane damage. Instead, relief funds were disproportionately awarded to rural, predominantly white areas less affected by the disaster. HUD found that even after public outcry, GLO’s subsequent offer of $750 million to Harris County remained insufficient, with no aid going directly to Houston.
HUD’s 2021 investigation concluded that GLO’s actions violated Title VI of the Civil Rights Act of 1964 and possibly the Fair Housing Act due to racial and national origin-based discrimination. GLO, however, contested these findings, asserting the allocations benefited many people of color and highlighting the DOJ’s return of the case to HUD for further investigation.
Regarding the Dallas case, HUD accused Providence Village’s Homeowners Association of discriminating by adopting rules in 2022 that banned renting to Section 8 Housing Choice Voucher holders, primarily affecting Black families. The Texas Legislature later prohibited such bans, but the association implemented new rental restrictions with similar impacts in 2024. Throughout this period, the community faced racist attacks on social media and protests by a white nationalist group.
In January, HUD accused the Providence HOA, its president, a property management company, and one of its managers of Fair Housing Act violations. The accused parties have denied these allegations, with the HOA maintaining that the rules protected property values and addressed crime concerns.
The cases faced abrupt termination after HUD’s Office of General Counsel rescinded the referrals to the DOJ, providing no further information on the decisions.
These actions align with a broader rollback of civil rights enforcement at the DOJ under the Trump administration. HUD also canceled grants to local fair housing groups and projected significant staffing reductions in its Office of Fair Housing and Equal Opportunity, which may significantly impact housing discrimination work.
While the complainants could file their own lawsuits, many are dismayed by the government’s reversal. Ben Hirsch, involved in the Harvey complaint, expressed deep concern that future floods could have catastrophic outcomes due to the decisions made in these cases.
