The Justice Department announced the settlement late Thursday, after the federal lawsuit had been filed earlier that day.
Justice Department officials said the settlement sends a strong message.
“Local governments that resort to discriminatory tactics to block the development of affordable housing and to lock out families with children will be held accountable,” Assistant Attorney General Kristen Clarke said in a statement. She heads the Justice Department's Civil Rights Division.
The City of Arlington denied any violations of law and asserted in a statement that council members "had numerous reasons why the project did not meet the City’s criteria for safe and decent housing, unrelated to whether the citizens who might reside in the project were seniors or families with children."
While disputing the validity of the complaint, the statement continued, "the City believes it is in the best interest of the City and its citizens to resolve the disagreement amicably in order to focus on providing City services instead of costly litigation."
The lawsuit had alleged that Arlington violated the Fair Housing Act by blocking an affordable housing project proposed by Community Development Inc., a private nonprofit organization that develops affordable housing. The project was to be financed by the federal Low-Income Housing Tax Credit (LIHTC), according to a Justice Department statement.
According to the Justice Department statement, “such tax credits are awarded by the State of Texas on a competitive basis, and it is very difficult for new developments to obtain tax credits unless they receive a Resolution of Support or a Resolution of No Objection from the local government.”
The lawsuit alleged that an Arlington’s policy supported LIHTC-supported developments only for housing intended for senior residents.
“Under the Fair Housing Act, cities cannot discriminate against families with children – nor can they discriminate on the basis of race, color, national origin, sex (including gender identity and sexual orientation), religion or disability,” Chad E. Meacham, acting U.S. Attorney for Northern District of Texas, said in the statement. “This law is just as important now as it was when it was passed more than 50 years ago, and we are committed to upholding it.”
The allegations that Arlington violated fair housing law go back to 2017. CDI had filed a complaint with the U.S. Department of Housing and Urban Development. HUD later concluded that Arlington had violated the Fair Housing Act and referred the case to the Justice Department.
CDI will be paid $395,000 under the terms of the settlement. And, according to the Justice Department statement, the city is required to "maintain a non-discriminatory policy for future LIHTC developments, provide Fair Housing Act training to certain city officials, and submit to compliance and reporting requirements for the term of the settlement."
The settlement must be approved by a Northern District of Texas federal judge.
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