The McKinney Housing Authority has filed a federal lawsuit accusing a North Texas homeowners association and its property management firm of racial discrimination. The case alleges that the Providence Homeowners Association and FirstService Residential Texas enforced rules excluding Black tenants from the Housing Choice Voucher program, violating the Fair Housing Act. The dispute has intensified longstanding tensions within the community.
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Lawsuit Alleges Discrimination
Filed this week, the lawsuit claims both the Providence Homeowners Association and FirstService Residential Texas engaged in a continuous pattern of racial discrimination. It accuses them of adopting rules to exclude tenants participating in the Housing Choice Voucher (HCV) program, formerly Section 8. According to the lawsuit, every tenant affected is a Black woman.
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Property Manager Denies Claims
In response, FirstService Residential Texas issued a statement rejecting the accusations. “FirstService Residential Texas, Inc. (FirstService) denies the allegations and remains committed to operating with fairness, integrity, and compliance with the law,” the statement said. The company deferred further comment to Providence officials.
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HUD Findings Back Complaints
The lawsuit notes that a charge of discrimination was issued in January after 53 Fair Housing Act complaints were filed against both entities. The U.S. Secretary of Housing and Urban Development concluded that “reasonable cause exists to believe that discriminatory housing practices have occurred because of race.”
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Controversial Rules Enacted
The lawsuit outlines how, since 2018, the PHOA Board raised concerns about an increase in rental properties, which it allegedly associated with a growing Black population. A board exhibit noted, “What was, in fact, increasing in the Town during this time was the number and concentration of Black residents.” By July 2021, the focus reportedly turned to limiting HCV rentals, despite voucher-holders representing a small portion of the neighborhood.
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Racially Charged Online Posts
According to exhibits in the lawsuit, board members were active in unofficial community social media groups that frequently featured racist and threatening posts. One post allegedly showed a photo of a Black man edited with a rope around his neck, captioned “this one is not coming back tomorrow.” Other posts blamed voucher-holders for crime and referred to them using derogatory terms like “ghetto.”
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State Law Bans Discriminatory Rules
In 2023, Texas passed a law prohibiting property owners’ associations from enforcing restrictions based on a tenant’s method of payment. However, the lawsuit argues that in 2024, the PHOA Board amended its rules to limit owners to a single rental property and later added a requirement that owners live in their home for two years before leasing, both changes seen as indirect efforts to restrict HCV participants.
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MHA Seeks Court Action
The McKinney Housing Authority is requesting permanent injunctive relief from the court, asking it to overturn discriminatory rules and implement policies banning racial harassment. “MHA has no adequate remedy at law,” the lawsuit states. “Monetary damages alone cannot compensate for the loss of civil rights, ongoing fear and intimidation, or the destruction of racial integration and community stability.”
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