Texas Gov. Abbott, HUD investigating Islamic community in north Texas

The state of Texas and U.S. Department of Housing and Urban Development are investigating an Islamic community in North Texas.

HUD Secretary Scott Turner directed HUD’s Office of Fair Housing and Equal Opportunity to investigate the East Plano Islamic Center (EPIC) for potential violations of the Fair Housing Act in response to a request by the state of Texas.

At issue is a real estate development, EPIC City, near Josephine, Texas, being built by Community Capital Partners (CCP) affiliated with EPIC. In 2024, EPIC announced plans to build 1,000 homes, a K-12 Islamic school, athletic fields and retail space on a 400-acre complex in Collin and Hunt counties.

EPIC says it’s “a multi-ethnic, multi-racial, multi-lingual, non-sectarian, diverse, and open community” that is “committed to civic and civil engagement with communities of other faiths and society at large.” It’s also affiliated with the Qalam Collegiate Academy, which provided middle and high school education in line with Texas Education Agency guidelines.

Last March, Gov. Greg Abbott issued a series of directives, including directing the Texas Workforce Commission to investigate EPIC to determine if it had violated the Texas Fair Housing Act. TWC said it found “a large-scale pattern of religious discriminatory conduct by the developers,” including producing marketing materials promoting EPIC City as an exclusively “Muslim community” to represent “the epicenter of Islam in America.” It also alleges discriminatory financial terms requiring lot owners to subsidize a mosque and Islamic educational centers and a “bias sales mechanism consisting of a two-tier lottery system for lot sales, which granted lot access to Tier One buyers.”

Last May, the TWC and CCP reached a settlement with EPIC agreeing to complete a fair housing training program, the Dallas Morning News reported.

In January, EPIC renamed EPIC City the Meadow. One month later, HUD announced it was investigating EPIC Real Properties, Inc., and CCP, arguing they may have violated the Fair Housing Act by engaging in religious and national origin discrimination.

“The Meadow was marketed as an exclusively ‘Muslim community’ intended to serve as ‘the epicenter of Islam in America.,” Abbott said in response to the HUD investigation. He said he hopes HUD will “hold EPIC and its affiliates accountable to our anti-discrimination laws. Together, we will hold anyone involved in violating the law accountable. The Meadow will remain just that – an empty field.”

The HUD action is one result of several investigations Abbott launched against EPIC last year. He directed the Texas Rangers to investigate potential criminal activities, directed the Texas Commission on Environmental Quality to identify if EPIC obtained required permits, and directed the Texas Funeral Service Commission to investigate EPIC funeral services. TCEQ determined permits hadn’t been obtained and TFSC determined EPIC was operating as a funeral home without an establishment license. It issued a cease and desist order. EPIC sued in response.

Abbott also directed the Texas State Securities Board to investigate potential securities violations. Last October, it contacted Attorney General Ken Paxton’s office stating the CCP “may have solicited unauthorized sales, engaged in fraud and made materially misleading statements concerning securities.” It requested the OAG to take action.

Last October, Paxton said he launched an investigation but the TSBB sent a letter to Paxton’s office saying it hadn’t provided any “initial findings and corresponding evidence” it said it would provide. It also requested Paxton take “appropriate enforcement action.” Last December, the OAG sued EPIC City and CCP, alleging they violated Texas securities law.

The U.S. Department of Justice also investigated EPIC last year but dropped the investigation within months. In response, Dan Cogdell, EPIC’s attorney, said several politicians had “tried to pervert these so-called investigations for their political benefit.” Cogdell appeared to be criticizing Paxton, whom he represented and defended during Paxton’s 2023 impeachment trial. After the DOJ dropped its investigation, Cogdell said the development was moving forward.

Overall, Abbott has directed more than a dozen state agencies to investigate potential illegal activities conducted by EPIC and its affiliated entities.