Fair housing nonprofit sues Scott Turner, HUD over ‘DEI’ orders

Three civil rights nonprofits including the National Fair Housing Alliance have filed a lawsuit against President Donald Trump and his administration for allegedly violating the First and Fifth Amendments with three executive orders Trump signed in January related to diversity, equity and inclusion (DEI).

The plaintiffs claim that the elimination of federal grants perceived as “DEI” — including those administered by the Department of Housing and Urban Development (HUD) — materially impede their ability to advance civil rights causes at the core of their missions.

In addition to violations of free speech and due process, the plaintiffs say the administration is violating the Fair Housing Act and other longstanding civil rights protections by deeming any DEI effort as illegal.

The National Urban League and the AIDS Foundation of Chicago are the other plaintiffs in the complaint. The defendants are Trump, HUD, HUD Secretary Scott Turner and 12 other federal agencies and their respective secretaries or directors.

Among the seven claims for relief, one is an alleged violation of the First Amendment, three are alleged violations of the Fifth Amendment, two claim the orders are in excess of Trump’s authority as president and one is a violation of the Administrative Procedure Act.

Representatives for the plaintiffs did not respond to a request for comment at the time of publication. Representatives for the defendants could not be reached.

Trump’s DEI executive orders eliminated grants, contracts, offices and positions within the federal government that related to or sought to alleviate issues that impact marginalized populations within race, gender and sexual orientation.

Much of the real estate industry is affected by the DEI orders in some way through departments in the federal government, including HUD, but the sweeping nature and at times vague language around them make it difficult to assess which ones.

The Property Appraisal and Valuation Equity (PAVE) Task Force, of which the Consumer Financial Protection Bureau (CFPB) was a part — was one of the first things to go, which most in the appraisal industry were happy to see end.

The Federal Housing Finance Agency (FHFA) is also impacted, and Fannie Mae, Freddie Mac and the Federal Home Loan Banks might be as well.