Abbott Signs Law Targeting Epic City

The state of Texas just rewrote the rulebook to target a proposed faith-based community northeast of Dallas.

Texas Gov. Greg Abbott signed into law a bill aimed squarely at the controversial Epic City development, a 1,000-home project led by members of the East Plano Islamic Center, the Dallas Morning News reported.

House Bill 4211, which took effect immediately upon Abbott’s signature, introduces new disclosure and ownership rules for business entities selling interest in shared real estate ventures. The law was authored by Rep. Candy Noble, a Republican from the Collin County town of Lucas.

The new law says developers must disclose that investors are buying into a business, not individual properties. It also stipulated that the business cannot charge fees or collect proceeds from resale of investors interests, and bars Epic City from claiming religious exemptions for home sales on parcels larger than 25 acres.

Noble had questioned the Epic City’s unusual fit into typical development financing frameworks: “The answer is — it seems to be a little bit of all of those, and technically, none of them,” she said of Community Capital Partners, the for-profit entity leading the project, referencing co-ops, timeshares, HOAs and MUDs.

It’s the newest avenue for political scrutiny of Epic City, which has already drawn five state-level investigations and a civil rights probe by the U.S. Department of Justice. Advocates have called the reasoning behind the legal fire vague, while others have said its aim to be a Muslim-centered community could open the door to discriminatory practices.

A spokesperson for Abbott said the law is meant to “defend” Texas communities “from any threats posed by Epic City or other entities seeking to create a discriminatory or illegal compound.” The developers behind Epic City, however, have maintained the project is open to people of all faiths and will fully comply with state and federal housing law.

Community Capital Partners previously told the outlet it will not restrict private lot sales and is only monitoring investor transfers to stay compliant with securities laws. Investor documents indicate the project is being funded through private offerings and lot sales, with shares open only to accredited investors.

The planned community would span 402 acres across Collin and Hunt counties. It includes proposals for over 1,000 homes, a mosque, K-12 school, senior housing, a community college, retail and sports facilities. Additional nearby neighborhoods dubbed Epic Ranches One and Two were planned but appear to have stalled. The project has yet to submit formal development plans.

— Judah Duke