North Texas HOA, Property Manager Face Discrimination Charges For Blocking Section 8 Renters
A homeowners association in a small Dallas suburb and the nation's largest residential community management company have been hit with accusations of racial discrimination for refusing to accept Section 8 vouchers.
Florida-based FirstService Residential and a homeowners association it manages face charges of housing discrimination for rules that effectively prevented Black renters from using government assistance at its Providence Village community.
The accusation by the U.S. Department of Housing and Urban Development states the Providence HOA violated the Fair Housing Act as well as used retaliatory legal action to intimidate residents and didn't intercede when heightened racial tensions left residents fearing for their safety. HUD also charged the Providence HOA board president and a FirstService Residential employee in the action, The Real Deal reported.
In addition to the Providence Village HOA, FirstService Residential manages two other Texas HOAs with rules that prevent renters from using Section 8 housing vouchers, according to Bloomberg.
Providence Village is a 9,000-resident town located just north of U.S. Highway 380 between Prosper and Denton. Black renters account for around 93% of those receiving Section 8 vouchers in Providence Village, TRD reported.
Following the passage of a 2023 state law banning HOA restrictions on those receiving housing vouchers, the Providence Village HOA amended its written policy.
But HUD alleges the changed rule still limited Section 8 renters from living in the community. The HOA restricted property owners to one rental per owner and limited the percentage of all units that could be rented, effectively barring voucher holders, who typically rent from large landlords that own multiple properties.
“The Fair Housing Act bars homeowners associations, just like landlords, from denying housing opportunities based on race,” HUD’s Acting General Counsel Benjamin B. Klubes said in a statement. “HUD will not tolerate homeowners associations instituting discriminatory policies.”
FirstService and Providence HOA did not immediately respond to Bisnow’s requests for comment.
In comments to TRD, FirstService placed the blame for the rule on the HOA and said it is “committed to operating with fairness, integrity, and compliance with the law.”
Following a Bloomberg investigation into the accusations in 2023, the Providence HOA board told the outlet no Section 8 tenants were evicted due to its original rule, which was an “effort to combat the unprecedented uptick in egregious crimes in our community committed by Section 8 tenants.”
An attorney representing six tenants who brought the HUD complaint said these types of charges aren’t seen very often.
“It’s a unique situation, in 2025, to have this kind of overt discrimination determination by HUD, and based on overt race-based behavior,” attorney Michael M. Daniel told Bloomberg.
Once the case goes before a judge, damages could be awarded or the Providence HOA could be required to make further changes to its rules.
Changes could also be forthcoming for HUD, which is awaiting the confirmation of Scott Turner. The 52-year-old former Texas lawmaker and opportunity zone advocate was picked by the Trump administration to lead the department.
If confirmed, Turner will inherit Biden administration-proposed reforms that would include lower debt requirements for HUD assistance on all types of housing. Turner would also be tasked with executing President Donald Trump’s agenda at HUD, which is expected to focus on deregulation and reviving old incentive programs.
