Fair housing organizations have filed a lawsuit against the Department of Housing and Urban Development (HUD) and the Department of Government Efficiency (DOGE) following the termination of key funding.
Relman Colfax, a civil rights law firm, and four members of the National Fair Housing Alliance filed their case on behalf of a proposed class of about 66 groups that had their Fair Housing Initiatives Program (FHIP) grants abruptly terminated by HUD and DOGE on Feb. 27.
The cancellation of the grants jeopardizes over $30 million in critical, congressionally authorized funding for fair housing groups to fight housing discrimination and enforce fair housing laws throughout the country, according to the plaintiffs.
They contend that the actions of HUD and DOGE are in violation of the Administrative Procedures Act and in excess of their authority.
The termination of the funding is already having a profound effect on the fair housing organizations, according to Rebecca Livengood, partner at Relman Colfax.
“Many have had to halt programs and fire staff, and many are at risk of closing in the very near term,” she tells Affordable Housing Finance.
One of the plaintiffs is the Fair Housing Council of South Texas, and its work includes advocating for people with disabilities to receive reasonable housing accommodations. Now, some of those cases will have to be suspended, according to Livengood.
The elimination of funding also looks to halt several housing discrimination investigations.
The Massachusetts Fair Housing Center has been forced to turn away clients, including a domestic violence survivor facing displacement from her temporary shelter, according to the law firm.
The Intermountain Fair Housing Council in Idaho will be forced to narrow its service, leaving a number of counties without eviction prevention or fair housing services.
The Greater Houston Fair Housing Center is not a plaintiff in the lawsuit but is hard hit by the recent events. It has ceased operations as of Feb. 27 at the direction of HUD, according to a message on its website.
For decades, Congress has recognized that fair housing organizations are needed across the country, says Livengood, adding that there is statutory mandate that HUD make grants under FHIP.
“To stop all of that funding is an existential threat to those organizations,” she says.
If the fair housing organizations are not identifying discrimination and informing people about their rights, there’s no question that housing discrimination will increase, stresses Livengood.
Filed in the U.S. District Court for the District of Massachusetts, the lawsuit has been assigned to Judge Richard G. Stearns, who has issued an order directing the government to respond by Friday, March 21, with a hearing anticipated next week.
The plaintiffs are seeking a temporary restraining order and the funding restored.
According to the lawsuit, the cancellation of FHIP grants came through a form letter explaining that HUD was terminating the grants at the direction of DOGE. HUD then said the grants were being terminated because they “no longer effectuate the program goals or agency priorities.”
That doesn’t make sense because the work of the fair housing organizations has consistently aligned with the goals and priorities that have been set by the agency, says Livengood.
“DOGE has no authority to direct HUD to cancel grants, nor does HUD have any authority for accepting DOGE’s grant-related directives,” reads the lawsuit.
Separately, HUD secretary Scott Turner also announced that HUD will terminate the Biden-era Affirmatively Furthering Fair Housing rule, saying the move will cut red tape and return decision-making power back to local and state governments. Fair housing advocates say this is another step in dismantling the fair housing framework in the country.
