Lawsuit throws Houston’s access to disaster-recovery funds into jeopardy

Local housing group is blocking Houston from receiving federal funds in protest of the city's policies

TRD WEEKEND EDITION /
Mar.March 25, 2018 01:00 PM

Left: Sylvester Turner in 2015. (Credit: Traci Patterson, back photo by Nick Youngson)

A local housing group is taking Houston to task over policies that it says perpetuates racial segregation throughout the city.

The group, called Texas Housers, filed a lawsuit last week alleging that the city has a track record of refusing to allow low-income housing developments to be built in predominantly white neighborhoods and that the Department of Housing and Urban Development has known about it all along, reports the Wall Street Journal.

The suit could block Houston from receiving the $30 million it receives annually from HUD and much more; the state has received $5 billion from HUD and is now tasked at distributing it throughout area affected from last year’s hurricane season, and HUD has another $28 billion it still needs to distribute to areas damaged by natural disasters.

“The lawsuit is not in the best interests of people in the city of Houston, who were directly impacted by Hurricane Harvey and found themselves displaced by the flood waters,” the Houston mayor’s spokesman, Alan Bernstein, told the Journal.

But the Housers say the rebuilding process has to be done equitably.

“Are we going to continue upholding segregation are or are we going to give families a real choice?” said co-director Chrishelle Palay to the Journal. [WSJ]Erin Hudson


Related Articles

arrow_forward_ios
Alex Rodriguez (Photos by Guerin Blask)

A-Rod is coming for NYC and SoFla real estate

Joel Schreiber (Credit: Shir Stein and Wikipedia)

WeWork’s first investor used his stock as collateral. Now his lenders are suing him

There will be 70 agents based at the new office (Credit: iStock)

Compass opens Long Island City office as new-development sales surge

Caspi Development’s Joshua Caspi, Core Asset Management’s James R. Parks, Hana Financial Investment’s Lee Jin-Kook, and 456 Greenwich

Goodbye bankruptcy, hello construction loan: Breakthrough for Tribeca hotel project

The Daily Digest - Tuesday

New life for Toys “R” Us, Masa Son is “embarrassed” with the Vision Fund: Daily digest

Nooklyn CEO Harley Courts (Credit: iStock)

Brokerage slashes agent commissions, delays payments after rent law change

Nuveen CEO Vijay Advani, Blackstone President & COO Jonathan Gray and one of the Texas properties

Blackstone just sold off a 29M sf national industrial portfolio

10 Hanover Square (Credit: Google Maps)

FiDi landlord violated rent stabilization regs for years: lawsuit

arrow_forward_ios