HUD Investigates North Texas Development for Religious Discrimination

HUD Investigates North Texas Development Over Religious Discrimination Allegations

The U.S. Department of Housing and Urban Development (HUD) is investigating whether developers of a master-planned community in North Texas, formerly known as East Plano Islamic Center City, discriminated against people based on their religion or national origin. The investigation centers on The Meadow, a planned community near Josephine, northeast of Dallas, which has over 1,000 residential units planned, along with a mosque, a K-12 faith-based school, and retail spaces.

The probe was launched after several state officials accused the entities behind the development, now called The Meadow, of religious discrimination. It follows a previous investigation by the U.S. Justice Department, which was quietly closed after developers agreed to adhere to federal fair housing laws.

HUD Secretary Scott Turner announced the investigation Friday, stating it stems from a complaint filed by the Texas Workforce Commission alleging a “large-scale pattern of religious discriminatory conduct” by EPIC Real Properties, Inc., and Community Capital Partners. According to Turner, “As HUD Secretary, 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.”

The Texas Workforce Commission had previously investigated the allegations, resolving its inquiry last September, according to documents obtained by KERA. HUD did not immediately respond to emailed requests for comment regarding the investigation or the Workforce Commission’s complaint.

Officials with The Meadow released a statement asserting they have complied with all applicable laws and that the HUD investigation revisits concerns already addressed through a conciliation agreement with the state workforce commission. Eric Hudson, legal counsel for Community Capital Partners, stated that the sequence of events – the state investigation’s resolution followed by the HUD probe – “raises serious due process concerns and appears less like neutral enforcement and more like an effort to shift forums once the State was required to defend its actions in court.”

This is not the first scrutiny faced by the planned community. The project has repeatedly drawn criticism from Texas Governor Greg Abbott, Attorney General Ken Paxton, and other state officials. Multiple investigations from various state agencies and a lawsuit filed by Paxton’s office are currently underway.

The Department of Justice initiated its own investigation in May 2025, at the request of U.S. Senator John Cornyn, but subsequently closed the case after reaching an agreement with the developers. Opposition to the development has become a prominent issue for some state Republicans during the recent primary election cycle.

The HUD investigation into The Meadow comes on the heels of the department’s closure of a years-long investigation into the distribution of Hurricane Harvey aid in Texas. That investigation found “no reasonable cause” to believe Texas officials discriminated based on race or national origin.

Governor Abbott publicly supported the new investigation, issuing a statement shortly after its announcement. He credited the initial state investigation and the resulting complaint from the Texas Workforce Commission for prompting the federal probe. Abbott also expressed hope that the investigation would ultimately prevent the project’s completion, stating, “Together, we will hold anyone involved in violating the law accountable. The Meadow will remain just that — an empty field.”