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Justice Department settles discrimination lawsuit over blocked Louisiana affordable housing project

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Thursday, December 19, 2024

Justice Department settles discrimination lawsuit over blocked Louisiana affordable housing project

Attorneys & Judges
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Merrick B. Garland Attorney General at U.S. Department of Justice | Official Website

The Justice Department announced today that the Town of Franklinton, Louisiana, has agreed to pay $230,000 in damages and civil penalties to settle allegations that it violated the Fair Housing Act by blocking a proposed affordable housing development for low-income tenants in a predominantly white part of Franklinton.

Under the agreement, Franklinton will facilitate the development of new affordable housing to replace the units previously blocked, amend its zoning ordinance to increase land available for multi-family housing development, and create a land donation program to support affordable housing.

“Developing affordable housing in high opportunity neighborhoods can have a transformative impact on the livelihoods of low-income residents of all races,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Fair Housing Act prohibits cities and towns from blocking low-income housing development because they believe that Black people will make up a large share of the future residents. Officials must ensure that affordable housing opportunities are made available and that all families have access to them regardless of race. The Justice Department will continue to hold jurisdictions accountable when they abuse their zoning power to deny equal access to housing opportunity.”

“Access to affordable housing free from discrimination is a right bestowed upon all Americans,” said U.S. Attorney Duane A. Evans for the Eastern District of Louisiana. “Denying affordable housing development for low-income individuals delays full achievement of the American Dream. The successful resolution of this Fair Housing Act matter provides low-income residents with the resources needed to achieve generational success.”

The complaint, filed on June 27, alleges that Franklinton discriminated based on race and color when it refused zoning approval for Quail Run, a 40-unit development financed through the federal Low Income Housing Tax Credit (LIHTC). Franklinton is highly segregated; approximately 48% of its population is Black, concentrated in the town’s north side. Quail Run would have been built on the south side, where over 80% of residents are white. Over 80% of Black households in Franklinton qualify as low-income and would have been more likely than white residents to live in Quail Run.

As alleged in the complaint, Franklinton’s Zoning Commission unanimously recommended granting zoning approval for Quail Run's development. However, the Mayor refused to consider this recommendation and denied Quail Run’s application without holding a City Council vote. As a result, developers had to return tax credits and could not develop housing; thus, leaving land vacant. The developers filed a complaint with HUD which later referred it to the Justice Department.

“Low-income residents should have equal access to affordable housing in well-resourced, low-poverty neighborhoods,” said Principal Deputy Assistant Secretary Diane Shelley of HUD’s Office for Fair Housing and Equal Opportunity. “Jurisdictions that deny affordable housing developments out of fear regarding future residents' race perpetuate segregation and violate the Fair Housing Act.”

Under Friday's settlement approved by U.S. District Court for Eastern District Louisiana:

- Franklinton will pay $205,000 in damages to Quail Run’s developers and $25,000 as a civil penalty.

- It will approve/support at least 40 units replacing those planned for Quail Run.

- Rezone at least 20 acres making them available for developing affordable housing.

- Create a land donation program supporting such developments.

- Revise zoning procedures ensuring transparency/applying non-discriminatory standards uniformly.

- Provide fair-housing/zoning procedure training officials/employees involved with land use/zoning decisions.

- Hold public listening sessions/educational programs informing residents about fair-housing rights.

Individuals believing themselves victims can file complaints with HUD or lawsuits within one year/two years respectively after incidents occur; reporting violations online via www.civilrights.justice.gov/. More information about related laws/cases can be found on DOJ/HUD websites.

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