Inclusive Communities Project, Inc. v. Texas Department of Housing & Community Affairs

749 F. Supp. 2d 486, 2010 U.S. Dist. LEXIS 102777, 2010 WL 3766714
CourtDistrict Court, N.D. Texas
DecidedSeptember 28, 2010
Docket4:08-cv-00546
StatusPublished
Cited by13 cases

This text of 749 F. Supp. 2d 486 (Inclusive Communities Project, Inc. v. Texas Department of Housing & Community Affairs) is published on Counsel Stack Legal Research, covering District Court, N.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Inclusive Communities Project, Inc. v. Texas Department of Housing & Community Affairs, 749 F. Supp. 2d 486, 2010 U.S. Dist. LEXIS 102777, 2010 WL 3766714 (N.D. Tex. 2010).

Opinion

MEMORANDUM OPINION AND ORDER

SIDNEY A. FITZWATER, Chief Judge.

In this action alleging that defendant Texas Department of Housing and Community Affairs (“TDHCA”) perpetuates racial segregation and discrimination through the allocation of Low Income Housing Tax Credits (“LIHTC”), the court must decide whether plaintiff The Inclusive Communities Project, Inc. (“ICP”) has standing and whether it has established prima facie cases under the Fair Housing Act (“FHA”), 42 U.S.C. §§ 3604(a) and 3605(a), the Fourteenth Amendment (actionable under 42 U.S.C. § 1983), and 42 U.S.C. § 1982. Concluding that ICP has demonstrated its standing beyond peradventure, has established a prima facie case for each of its claims, and has adduced evidence that would enable a reasonable jury to find in its favor on each of its claims, the court grants ICP’s motion for partial summary judgment and denies de *492 fendants’ motions for judgment on the pleadings and for summary judgment. 1

I

The background facts and procedural history of this case are set out in the court’s prior memorandum opinion and order. See Inclusive Cmtys. Project, Inc. v. Tex. Dep’t of Hous. & Cmty. Affairs, 2008 WL 5191935, at *1 (N.D.Tex. Dec. 11, 2008) (Fitzwater, C.J.) (“ICP I”). The court therefore adds to ICP I the facts and procedural history pertinent to the court’s present decision.

ICP is a Dallas-based non-profit organization that assists low-income persons in finding affordable housing and seeks racial and socioeconomic integration in Dallas housing. In particular, ICP works with African-American families who are eligible for the Dallas Housing Authority’s Section 8 Housing Choice Voucher program (“Section 8”). ICP assists Section 8 participants in obtaining apartments in predominately Caucasian, 2 suburban neighborhoods 3 by offering counseling, assisting in negotiations with landlords, and providing financial assistance (for example, security deposits). At times, ICP must provide “landlord incentive bonus payments” to landlords to secure housing for Section 8 participants.

TDHCA 4 is the state entity that administers the federal LIHTC program, granting tax credits under 26 U.S.C. § 42 to low-income housing developers to encourage investment in low-income, multifamily rental housing. Developers can sell their tax credits to finance housing construction. The tax credits are allocated according to the federal statute, which requires the state agency to act according to an annual “Qualified Allocation Plan” (“QAP”) developed by the agency. See 26 U.S.C. § 42(m); 10 Tex. Admin. Code § 50.1 et seq. (2010) (setting forth QAP developed by TDHCA). TDHCA receives applications for proposed developments and has the sole authority to approve or deny tax credits for those developments. 5 The agency receives more applications than it can fund, and the exact amount of tax *493 credits allocated to Texas varies each year (for example, $43 million in tax credits was allocated to Texas in 2007). Any developer who receives LIHTC must accept as tenants otherwise-eligible Section 8 participants who use Section 8 vouchers to help pay rent. See 26 U.S.C. § 42(h)(6)(B)(iv). According to ICP, Section 8 participants struggle to obtain housing in non-LIHTC developments.

ICP alleges that TDHCA has disproportionately approved tax credits for low-income housing in minority neighborhoods and has denied applications for non-elderly 6 low-income housing in predominately Caucasian neighborhoods; that 92% percent of all LIHTC units in the city of Dallas are in census tracts where more than one-half of the population is minority; that TDHCA has discretion in determining which proposed projects receive tax credits, and that TDHCA improperly takes race into account (both of the neighborhood and of potential residents), perpetuating racial segregation in Dallas housing; that defendants made housing and financial assistance for housing construction unavailable because of race, in violation of the FHA; and that defendants used race as a factor in their allocation of tax credits, in violation of the Fourteenth Amendment, actionable under § 1983, and § 1982, which requires that defendants give all United States citizens the same right to lease property as Caucasian citizens. ICP requests broad equitable relief, including, inter alia, an injunction requiring TDHCA to create as many LIHTC units in non-minority census tracts as in minority census tracts; forbidding TDHCA from considering the racial composition of the area or potential residents; and enjoining TDHCA from perpetuating racial segregation.

ICP moves for partial summary judgment, asking the court to hold that ICP has standing to bring its claims, that it has established a prima facie case of racial discrimination based on a pattern of racial segregation in LIHTC units, and that, under the circumstantial evidence framework of Village of Arlington Heights v. Metropolitan Housing Development Corp., 429 U.S. 252, 97 S.Ct. 555, 50 L.Ed.2d 450 (1977), defendants’ actions have a greater effect on non-Caucasians than on Caucasians. Defendants move for judgment on the pleadings and for summary judgment, asserting that ICP lacks standing and that it is not entitled to relief on the merits.

II

The court begins by summarizing the standards under which the parties’ motions are to be decided.

A

Defendants move under Rule 12(c) for judgment on the pleadings. A Rule 12(c) motion “is designed to dispose of cases where the material facts are not in dispute and a judgment on the merits can be rendered by looking to the substance of the pleadings and any judicially noticed facts.” Hebert Abstract Co. v. Touchstone Props., Ltd., 914 F.2d 74, 76 (5th Cir.1990) (per curiam) (internal citations omitted). The motion “should be granted only if there is no issue of material fact and if the pleadings show that the moving party is entitled to prevail as a matter of law.” Greenberg v. Gen. Mills Fun Grp., Inc., 478 F.2d 254, 256 (5th Cir.1973) (per curiam).

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749 F. Supp. 2d 486, 2010 U.S. Dist. LEXIS 102777, 2010 WL 3766714, Counsel Stack Legal Research, https://law.counselstack.com/opinion/inclusive-communities-project-inc-v-texas-department-of-housing-txnd-2010.