Following HUD’s determination that the Defendants had engaged in intentional race discrimination and had allowed a racially discriminatory hostile environment at Providence Village, on July 21, 2025, Relman Colfax, on behalf of DHA, filed a complaint in the United States District Court for the Eastern District of Texas. In Denton Housing Authority v. Providence Homeowners Association, Inc. and Firstservice Residential Texas, Inc., DHA brought this action to seek redress for the damages caused by the Defendants’ discriminatory conduct, including the ban on renting to voucher-holders and the hostile environment caused at Providence Village, as well as injunctive relief to end the current racially motivated restrictions on investor-owned rental housing.
As a result of the discriminatory conduct at Providence Village, many DHA clients moved out, and DHA lost fees when people left its service area or when they were not
able to find new housing quickly. By interfering with the ability of voucher-holders and Black residents to live in Providence Village, the Defendants’ conduct also impaired DHA’s mission and its core, mission-driven activities of providing quality affordable housing. DHA has also had to divert resources to help voucher-holders and landlords understand their rights and to help people find new housing in the middle of their leases.
“Denton County already has a dearth of affordable housing, in particular in high opportunity areas, and Defendants’ actions further constrained that housing stock, limiting DHA’s ability to carry out its primary activity of connecting people with quality affordable housing,” the complaint reads.
Formed in 1970, Denton Housing Authority is a public agency established under state law. DHA works with low-income families to find safe, affordable housing in Denton County neighborhoods with amenities all families want—good schools, grocery stores, and safe public spaces. For years, DHA placed tenants in Providence Village.
“The Denton Housing Authority remains a lifeline to families who are seeking safe housing. We hope that through this legal action, the Defendants will be held accountable, the rights of the families harmed will be vindicated, and justice will finally be made possible for those seeking it. Every family deserves to live in dignity and free from discrimination,” said Rebecca Livengood, Partner at Relman Colfax.
On July 27, 2022, the Denton Housing Authority (“DHA”) filed an administrative Fair Housing Act (“FHA”) complaint with the U.S. Department of Housing and Urban Development (“HUD”) alleging that a Dallas-area homeowners association and its management company discriminated on the basis of race and other protected classes when they adopted and enforced a new policy barring rentals to families assisted under HUD’s Housing Choice Voucher program. Of the 157 Voucher households affected, 93% were black families.
Through its Chief Executive Officer, Sherri McDade, DHA advised Voucher holders of their rights under state and federal law, including their rights to file housing discrimination complaints with HUD. In addition to the DHA complaint; additional housing discrimination complaints were filed by Voucher households and by their landlords, all of whom were injured by the new policy they alleged was motivated by animus against persons protected under the FHA.
There was substantial national press coverage of PHOA’s actions, including by HBO’s John Oliver (at 11:03 of the segment). PHOA agreed not to enforce the policy while federal investigations were pending. However, in 2024, it adopted a new policy that restricted landlords from renting more than one property and limited the number of rental units to 25 percent of the lots in Providence Village. These new policies also limit renters’ access to housing and HUD found that they violated the HOA’s agreement not to enforce the earlier policy.
On January 14, 2025, the U.S. Department of Housing and Urban (“HUD”) issued a determination that the Providence Homeowners Association, Inc. (“PHOA”), its property management company, First Service Residential Texas, Inc. (“FirstService”), its property manager and president of PHOA violated the Fair Housing Act by engaging in intentional discrimination based on race and color against Section 8 Voucher holders.
Sara Pratt developed the legal theory and evidence to support these claims and consulted with HUD's investigative team to ensure its Determination was well supported.
A copy of the complaint can be found here. A copy of the HUD Charge can be found here, and a copy of the HUD Determination can be found here.