In one investigation, the U.S. Department of Housing and Urban Development concluded that a Texas state agency had steered $1 billion in disaster mitigation money away from Houston and nearby communities of color after Hurricane Harvey inundated the region in 2017. In another investigation, HUD found that a homeowners association outside of Dallas had created rules to kick poor Black people out of their neighborhood.
The episodes amounted to egregious violations of civil rights laws, officials at the housing agency believed — enough to warrant litigation against the alleged culprits. That, at least, was the view during the presidency of Joe Biden. After the Trump administration took over, HUD quietly took steps that will likely kill both cases, according to three officials familiar with the matter.
[In the Houston case] HUD sent the money to a state agency called the Texas General Land Office, which awarded the first $1 billion in funding to communities affected by Harvey through a grant competition.
The result: Of that initial $1 billion, Houston — where nearly half of all homes were damaged by the hurricane — received nothing. Neither did Harris County, where Houston is located, or other coastal areas with large minority populations.
HUD launched an investigation into the competition in 2021, ultimately finding that GLO had discriminated on the basis of race and national origin, thereby violating Title VI of the Civil Rights Act of 1964 and possibly the Fair Housing Act as well.
On Jan. 15, HUD referred the Houston case to the Department of Justice, a necessary step to a federal lawsuit after the housing agency finds evidence of discrimination. Less than a month later, on Feb. 13, the agency rescinded its referral without public explanation. HUD did the same with the Dallas case not long after.
Sara Pratt, a former HUD official and an attorney for complainants in both Texas cases. “The message is: The federal government no longer takes housing discrimination seriously.”
HUD spokesperson Kasey Lovett disagreed, saying there was precedent for the rescinded referrals, which were done to gather more facts and scrutinize the investigations. “We’re taking a fresh look at Biden Administration policies, regulations, and cases. These cases are no exception,” Lovett said in a statement.