In the midst of aggressive cost-cutting measures, a coalition of fair housing groups with grant funding have filed a lawsuit against DOGE, U.S. Department of Housing and Urban Development (HUD) and Scott Turner in his capacity as HUD secretary. The groups allege an overstep that will hamper their ability to fight evictions and curb discrimination in housing.
The suit was brought by law firm Relman Colfax and four members of the National Fair Housing Alliance (NFHA). Groups in the states of Massachusetts, Idaho, Texas and Ohio filed the suit in the U.S. District Court for the District of Massachusetts, saying that the defendants “arbitrarily and without notice, reason, or sensible explanation terminated 78 Fair Housing Initiatives Program (FHIP) grants” which the groups say “immediately compromised” their work against housing discrimination and segregation.
This is according to court documents reviewed by HousingWire. The 36-page complaint explains that the grants were terminated “at the direction of [DOGE],” citing an executive order from the president and HUD’s own determination that the canceled programs “no longer effectuate the program goals or agency priorities.”
But the suit contends that neither of these stated reasons make sense, since Congress determined the function that FHIP grants serve, including by giving the organizations autonomy to “identify and remedy” instances of discrimination.
“Moreover, DOGE has no authority to direct HUD to cancel grants, nor does HUD have any authority for accepting DOGE’s grant-related directives,” the complaint said. The move constitutes “an arbitrary, capricious, and unlawful action by HUD and an ultra vires action by DOGE,” referring to a term used to describe an entity operating beyond its authority.
“In this case, brought on behalf of themselves and a class of similarly situated fair housing groups, the named plaintiffs seek to reverse the termination through the injunctive relief of reinstating the grants.”
Local media in the jurisdictions of the plaintiffs gauged the immediate reactions of the named plaintiffs. Carrie Pleasants, executive director of the Cleveland-based Fair Housing Center for Rights and Research, told media outlet Signal Cleveland that the organization received about half of the impacted grant funding before the abrupt termination of the contract.
The grants were slated to pay for radio, television and billboard ads in Northeast Ohio designed to inform tenants of their rights when fighting discrimination in housing.
Zoe Ann Olson, executive director of the Boise-based Intermountain Fair Housing Council, said in a statement that the organization has served all 44 Idaho counties for more than 30 years.
“FHIP funding has been critical for ensuring that individuals and families have access to the resources and advocacy they need,” the statement said. “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.”
A report in the Idaho Statesman pointed out that HUD has routinely praised the Idaho organization for its work in this area, as noted in the complaint.
“[S]ince 2020, it has received exclusively ‘excellent’ grades from HUD for its performance under the grants. […] The IFHC has never received any communication from HUD that its performance or compliance with the terms and conditions of the grant was anything less than satisfactory.”
Rescission of the grants has a direct impact on these groups’ ability to function, according to Yiyang Wu, a lawyer with Relman Colfax.
“It’s how they pay their bills,” Wu told the New York Times. “It’s their bread and butter.”
