Texas Workforce Commission Settles Fair Housing Complaint Against Controversial EPIC City Developers

The Texas Workforce Commission reached a settlement agreement Tuesday with Community Capital Partners, the developers behind the controversial EPIC City project—a planned Muslim-centric community northeast of Dallas—resolving Fair Housing Act allegations that emerged during a year-long investigation into potential religious discrimination in housing practices.

The settlement concludes one of multiple state investigations launched by Governor Greg Abbott against the East Plano Islamic Center and its affiliated development entity. However, the state agency did not immediately disclose specific terms of the agreement. Community Capital Partners provided documents about the settlement to The Dallas Morning News, but Texas Workforce Commission officials did not respond to requests for comment about the resolution.

Investigation Stemmed from Religious Discrimination Concerns

The Texas Workforce Commission's Civil Rights Division initiated its investigation in March 2025 after reviewing publicly available marketing materials from EPIC City developers that raised concerns about potential violations of state and federal fair housing laws. The investigation focused on whether the developers were illegally restricting housing sales based on religion, race, or other protected characteristics.

"Based on information made publicly available by the developers of East Plano Islamic Center (EPIC) City, the Texas Workforce Commission is initiating an investigation into EPIC and its affiliated entities to determine if the EPIC City developers are violating any fair housing laws," the agency announced in March.

Under both Texas and federal fair housing laws, it is illegal to refuse to rent, sell, negotiate, or set different terms for housing transactions based on race, color, religion, sex, disability, familial status, or national origin. The laws also prohibit publishing advertisements that indicate preferences or limitations based on these protected characteristics.

Federal Investigation Already Concluded in Project's Favor

The Texas Workforce Commission settlement comes nearly three months after the U.S. Department of Justice closed its own civil rights investigation into EPIC City, finding no evidence of discriminatory practices. Assistant Attorney General Harmeet K. Dhillon wrote in June that Community Capital Partners "affirmed that all will be welcome in any future development" and committed to developing marketing materials consistent with Fair Housing Act obligations.

"Community Capital Partners is committed to building an inclusive community that follows the guidelines of the Fair Housing Act, and we are glad the DOJ found that to be true in their investigation," attorney Dan Cogdell, representing the developers, stated following the federal probe's conclusion.

The federal investigation was initiated by Senator John Cornyn, who raised concerns in April 2025 about potentially discriminatory language in the project's marketing materials. Cornyn specifically highlighted that Community Capital Partners had initially advertised that homes would be sold to individuals who "contribute to the overall makeup of [the] community" before changing the language in response to media inquiries.

Ambitious Development Project Faces Multiple Hurdles

EPIC City represents one of the most ambitious Muslim-centered development projects in American history, spanning 402 acres in unincorporated areas of Collin and Hunt counties near Josephine, Texas. The master-planned community would feature more than 1,000 residential units, a mosque, a K-12 faith-based school, a community college, senior housing, commercial developments, and recreational facilities.

The project emerged from the East Plano Islamic Center's need to accommodate a rapidly growing Muslim population in North Texas, which has reached an estimated 150,000 people in the Dallas-Fort Worth metroplex. Yasir Qadhi, resident scholar at the mosque, explained that "Dallas is now known to be a hub of people of our faith, coming not just to the city, but specifically to our mosque".

"We need more space, and people are coming from across the country," Qadhi told KERA News, emphasizing the organic growth driving demand for the development.

The first 450 plots reportedly sold out within days of being announced on the mosque's website, demonstrating strong interest from potential Muslim residents across the nation.

Political Opposition and Multiple State Investigations

Despite federal clearance, EPIC City continues facing intense scrutiny from Texas Republican leaders who have characterized the project as a potential threat to state sovereignty and American values. Governor Abbott has repeatedly claimed without evidence that the development could implement "Sharia law," posting on social media that "Sharia law is not welcome in Texas".

The controversy intensified in March 2025 when Abbott announced that a dozen state agencies were investigating various aspects of the East Plano Islamic Center and its development plans. Beyond the now-settled Texas Workforce Commission investigation, ongoing probes include a criminal investigation by the Texas Rangers, consumer protection violations by the Attorney General's office, potential securities fraud by the Texas State Securities Board, and illegal funeral service operations by the Texas Funeral Service Commission.

"Under my watch, there will be zero tolerance for any person or entity that breaks Texas law," Attorney General Ken Paxton declared when announcing his office's investigation. "My office has an open and ongoing investigation into EPIC City, which has raised several concerns".

Project Leaders Maintain Inclusive Vision

Throughout the investigations, EPIC City developers have consistently emphasized their commitment to creating an inclusive and diverse community that welcomes residents from all backgrounds. Imran Chaudhary, executive officer of Community Capital Partners and former president of the East Plano Islamic Center board, described the project's vision as "an inclusive community, one in which people of every background, faith, and culture can live together in harmony".

Project representatives have made it clear that the development will be marketed and operated in accordance with federal fair housing guidelines, with no religious tests or requirements for prospective residents. At a Collin County Commissioners Court meeting, planner Erin Ragsdale stated: "Anybody who wants to buy a piece of land in this proposed master plan community can buy one. To build a house, to open a business, to build a school, to build a church, it is open to everyone".

The East Plano Islamic Center describes itself as "a multi-ethnic, multi-racial, multi-lingual, non-sectarian, diverse, and open community committed to full and equal participation and involvement of men and women".

Construction Remains Halted Pending Permits

Despite resolving the Fair Housing Act complaint, EPIC City construction remains halted while developers work to obtain the required state permits and authorizations. In March 2025, the Texas Commission on Environmental Quality found that the developers had not submitted the necessary permits for construction and development, ordering them to confirm that they were not engaged in any construction activities.

"The Texas Commission on Environmental Quality found that the group behind the proposed EPIC compound did not submit the required permits to begin construction," Abbott announced. "They must confirm within seven days that they are immediately ceasing any construction of their illegal project or face the full weight of the law".

Community Capital Partners has indicated that construction of the development remains years away as they navigate the permitting process and ongoing investigations. The project also requires approval from Collin County Commissioners for the final development plans.