LIHTC Court Decision

The Dallas Federal District Court today ruled in favor of the plaintiff in a lawsuit that challenged the Texas Department of Housing and Community Affairs’ (TDHCAs’) allocation of low-income housing tax credits (LIHTCs) in the Dallas metropolitan area. The court found that the plaintiff, The Inclusive Communities Project Inc. (ICP), proved its claim under the Fair Housing Act (FHA) that the agency’s allocation decisions have a disparate racial impact, albeit an unintentional one. TDHCA has 60 days to submit a remedial plan to address the FHA violations. There is a possibility that the ruling and the agency’s remedial actions could affect the release of TDHCA’s 2012 LIHTC allocations, according to the Texas Affiliation of Affordable Housing Providers.