District Court blocks HUD’s attempt to terminate FHIP grants

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On March 25, 2025, Judge Richard G. Stearns of the U.S. District Court in the District of Massachusetts issued an order granting a temporary restraining order reinstating 78 Fair Housing Initiatives Program (FHIP) grants that fair housing groups use to fight housing discrimination. These grants were abruptly terminated by the U.S. Department of Housing and Urban Development (HUD) at the behest of the agency’s internal task force of the so-called Department of Government Efficiency (DOGE). The Miami Valley Fair Housing Center’s Private Enforcement Initiative grant was one of the grants terminated.

In response, Lisa Rice, President and CEO, National Fair Housing Alliance® (NFHA™) released the following statement:.

‘We are grateful for today’s decision granting a temporary restraining order, halting the wrongful and unlawful termination of FHIP grants to fight housing discrimination. This action, taken by HUD at the direction of its internal DOGE task force, is endangering everyday people while empowering wealthy landlords and others to discriminate.

Fair housing organizations are on the front lines of efforts to combat housing discrimination through enforcement of the Fair Housing Act. Without their efforts, survivors of sexual harassment in housing; veterans with disabilities requiring accessible housing; people of color seeking to buy a home free of racial harassment, and families with children would have no protection or anywhere to turn to uphold the law. The Trump Administration’s abrupt elimination of funding threatened drastic consequences for at least 66 non-profit organizations around the country and creates fear, chaos, insecurity, and dysfunction in an already fragile housing market. FHIP grants, which are authorized by Congress and receive annual appropriations, have been provided for decades under administrations of both parties and are key to the nation’s ability to enforce the Fair Housing Act and ensure equal access to housing.’ A copy of Judge Stearns’ order is available here.

On Thursday, March 27, 2025, the Miami Valley Fair Housing Center received a copy of the Judge’s Temporary Restraining Order (TRO), together with a brief memo addressed to ‘All Impacted Grantees’ that explained the TRO had been entered. The memo concluded by saying ‘Consistent with the court’s order, your FHIP grant has been restored to its status prior to February 27, 2025, and reinstated.’

‘We are thankful that the grant has been reinstated,’ said Jim McCarthy, President/CEO of the Miami Valley Fair Housing Center. ‘Without FHIP enforcement funding, it is hard to see how the fair housing center would continue to serve the community as it has for the past 32 years,’ McCarthy concluded.

In response to the notification, the Fair Housing Center resumed accepting new inquiries and complaints of housing discrimination.

Relman Colfax and Fair Housing Advocates Ask Court to Halt HUD’s and DOGE’s Termination of Grants to Fight Housing Discrimination

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On March 13, 2025, the law firm Relman Colfax, based in Washington, DC, and four members of the National Fair Housing Alliance (NFHA) announced the filing of a lawsuit against the U.S. Department of Housing and Urban Development (HUD) and Department of Government Efficiency (DOGE). This legal action follows HUD’s sudden and unlawful termination of grants disbursed under the Fair Housing Initiatives Program (FHIP). Terminating those 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.

The lawsuit, filed in the United States District Court in the District of Massachusetts, is brought on behalf of a proposed class of more than 60 fair housing groups whose grants were abruptly terminated by HUD and DOGE on February 27, 2025. Plaintiffs have moved for a temporary restraining order (TRO).

The Miami Valley Fair Housing Center (MVFHC) was notified that the Private Enforcement Initiative—Multi-Year grant, valued at $425,000 per year, had been terminated. MVFHC was nearing completion of the third quarter of the second year of the 3-year grant it was awarded in 2023.

Fair housing groups like MVFHC, funded by FHIP, have long been the backbone of efforts to combat housing discrimination and enforce the Fair Housing Act (FHA). These groups investigate housing discrimination complaints, enforce fair housing laws, assist individuals facing discrimination, educate communities about their rights, and collaborate with local governments to expand fair and affordable housing opportunities. FHIP grants—which originated from Congress’s recognition of the central role of fair housing organizations in combatting housing discrimination—are a primary funding source for private fair housing groups.

A letter informed grantees that the terminations were effective that same day, late in the evening on February 27th. MVFHC's letter was delivered via email and received at 8:22 PM Eastern. Seventy-eight FHIP grants were terminated altogether, representing a primary funding source for fair housing organizations in 33 states. The FHIP grants were halted at the direction of the newly established DOGE, claiming the grants “no longer effectuate the program goals or agency priorities,” despite grantees performing activities aligned with Congressionally authorized aims. The filing argues that DOGE lacks the authority to direct HUD to cancel grants, and HUD cannot follow such directives.

Fair housing organizations, particularly the four named plaintiffs in the TRO filing, already feel the harm and devastating effects of this funding termination. The Massachusetts Fair Housing Center, Intermountain Fair Housing Council, Fair Housing Council of South Texas — San Antonio Fair Housing Council, and Housing Research and Advocacy Center — Fair Housing Center for Rights and Research are among the plaintiffs who have long fought to dismantle discriminatory housing practices in their respective regions and beyond.

“The sudden termination of these grants comes at a time of escalating discrimination complaints,” said Yiyang Wu, Partner at Relman Colfax. “These programs are not just administrative line items; they are lifelines for all Americans. HUD’s and DOGE’s irresponsible actions could dismantle critical programs and shutter organizations that ensure access to fair, equitable housing nationwide.”

Lisa Rice, President and CEO of the National Fair Housing Alliance, explained: “A housing market in which all people cannot participate fairly, without regard to race, color, national origin, religion, gender, familial status, or disability, is a broken market economically and morally. Fair housing has always received broad and regular bipartisan support, and fair housing is an official policy of the United States. In fact, Congress established FHIP, in part, to support activities to rectify the centuries of discriminatory housing and lending policies and practices perpetuated by the federal government that created systemic barriers to housing opportunity, including the residential segregation impacting so many people today. The Trump administration’s actions leave survivors of sexual harassment in housing; people with disabilities requiring accessible housing; and people of color seeking to buy a home free of racial harassment with no protection and nowhere to turn to uphold the law. Eliminating the FHIP grants has created fear, chaos, insecurity, and dysfunction among people in dire need of assistance. In many communities where there is no alternative to enforce fair housing laws, these decisions will have profound and immediate impacts on communities and risk undermining our already fragile housing market.”

“As the oldest fair housing organization in Massachusetts, founded in direct response to the creation of the FHIP program, we’ve worked tirelessly across administrations to uphold housing equity,” said Maureen St. Cyr, Executive Director of the Massachusetts Fair Housing Center. “Our work has changed lives by helping veterans get ramps to make their housing accessible and domestic violence survivors stave off eviction to keep their families stably housed. Through this work, we have also saved taxpayers money by reducing the significant costs of homelessness. It’s difficult to see how this essential mission could conflict with the priorities of any administration. Terminating this funding jeopardizes progress we’ve achieved over decades and prevents us from serving the families today that need immediate assistance.“

“We have been serving communities across all 44 counties in Idaho for over 30 years, assisting those who are experiencing housing discrimination, instability, or homelessness. Many are from communities that are oftentimes overlooked and underserved: rural communities, immigrant communities, veterans, the disabled, and the elderly, to name a few,” said Zoe Ann Olson, Executive Director at the Intermountain Fair Housing Council. “FHIP funding has been critical for ensuring that individuals and families have access to the necessary resources and advocacy. Without this support, thousands risk being left without protection or recourse. Losing these resources sends a dangerous message that fair housing protections for Idahoans and beyond are no longer a national priority.”

“The termination of FHIP funding devastates communities across Texas, where discrimination in housing remains prevalent,” said Sandra Tamez, Executive Director at the Fair Housing Council of South Texas — San Antonio Fair Housing Council. “For decades, our work has ensured that families, regardless of their background or income, can access fair housing opportunities. Without this critical support, justice for individuals who experience housing discrimination will be out of reach, and lives will be left in the balance. It is not just about funding; it is about the values we uphold as a society—ensuring everyone has a fair shot at accessible, inclusive housing.”

“This abrupt termination has caused substantial chaos and confusion, not only to our organization, but to thousands of Ohioans. This unprecedented action undermines decades of progress in fair housing advocacy and threatens the stability of organizations that have tirelessly fought for equality, ” said Carrie Pleasants, Executive Director at the Housing Research and Advocacy Center — Fair Housing Center for Rights and Research. “It sets a dangerous precedent, leaving countless individuals without the support they need to overcome housing inequality. All of Ohio will bear the brunt of this detrimental decision.”

Like the named plaintiffs, the Miami Valley Fair Housing Center’s enforcement operations have already been significantly impacted.

Fair housing is a legal right, and FHIP grants were a promise to the American people that cannot be revoked at DOGE’s direction without any explanation. Relman Colfax and these brave organizations remain resolute in fighting for the organizations, families, individuals, and communities that FHIP grants safeguard.

A copy of the filing can be found here.

Class Action Against Nation’s Largest Single-Family Rental Housing Provider, Progress Residential, Filed Over Discriminatory Rental Policies by FHCCI and Indianapolis Resident

INDIANAPOLIS, IN—The Fair Housing Center of Central Indiana (FHCCI) and Indianapolis, Indiana resident, Marckus Williams, have filed a class action complaint against Progress Residential, the nation’s largest single-family rental provider. This complaint alleges discriminatory practices perpetuated by Progress against Black renters through arbitrary criminal history policies. The lawsuit alleges that Progress enforces blanket bans on certain justice-involved applicants without assessing individual circumstances, disproportionately affecting Black applicants who are systematically overrepresented in criminal justice statistics.

Marckus Williams—an exemplar of personal redemption and community development—was denied housing by Progress due to outdated criminal records, including records that had been expunged, despite over a decade of serving his community. “Being unfairly barred from housing not only challenges my identity; it underscores a broader societal issue of systemic bias,” Mr. Williams asserts.

With a management portfolio exceeding 90,000 homes, Progress's alleged discriminatory practices are believed to have a widespread and detrimental impact on minority applicants across the company’s service area. The proportion of Black people disqualified by Progress’s blanket ban on renting to people with misdemeanor convictions between 2019 and 2021 is 4.44 times greater than the proportion of white people affected. For those with felony convictions between 2012 and 2021, the disparities are even greater, as the proportion of Black applicants disqualified is 8.16 times greater than the proportion of white people disqualified.

The complaint details how there are pervasive racial disparities at every juncture of the criminal justice system in this country, including the areas where Progress operates. Black individuals are more likely than their white counterparts to be stopped, arrested, convicted, and incarcerated. By automatically excluding applicants with certain kinds of justice-involvement, Progress’s policy disproportionately excludes Black applicants from the company’s thousands of rental units.

“These actions by Progress are not merely against the law—they are ethically unconscionable and perpetuate systemic disadvantage,” remarked Amy Nelson, FHCCI’s Executive Director.

This class action signifies an urgent call to amend the entrenched policies of this housing provider giant, safeguarding the civil rights of Black rental applicants who have been unlawfully denied residency. Valerie Comenencia Ortiz, an attorney at Relman Colfax, emphasized, “This complaint seeks to dismantle barriers and uphold rightful housing opportunities for victims of racial discrimination.”

If you believe you have experienced similar discrimination involving this company, please contact us here. Your voice matters, and by coming forward, you can help ensure justice is served and prevent future harm.

A copy of the filed complaint can be found on the FHCCI’s News Page or Enforcement Page.

The FHCCI and Mr. Williams are represented by Lila Miller, Valerie Comenencia Ortiz, Ellora Israni, Esmeralda Hermosillo, and Jake Hogan of Relman Colfax and Russell Cate and Matthew Keyes of RileyCate.

Previous news items are available here.