Providence HOA pauses Section 8 ban during HUD investigation, lawsuits

Providence Homeowners Association will not enforce its ban on Section 8 Housing Choice Voucher recipients until the Department of Housing and Urban Development completes its investigation into the leasing rule changes passed in June.

Homeowners and tenants filed complaints with HUD alleging the leasing rules violate the Fair Housing Act, which prevents discrimination based on race, color, national origin and other protected classes. The association notified residents via email Wednesday that the new rental rules — including the ban on voucher residents, the fines against landlords with Section 8 residents and the rule limiting one rental house per property owner — would be stayed until the investigation and “subsequent litigation by HUD or the U.S. Department of Justice” is complete.

“Homeowners will not incur fines for renting to voucher-holders or for having more than one rent house under the Rules until the HUD matter is resolved. Homeowners cannot and should not evict tenants or non-renew leases to avoid fines,” the notice reads in part.

The announcement also follows a lawsuit filed July 15 by High Opportunity Neighborhood Realty against the association and board members Don Fisher, Jennifer Dautrich, Dylan Lawson, Melanie Ecker and Roland Clarke. The suit claims the leasing rules “are improper on their face, have a disparate impact on minorities, violate housing laws, violate property owner association laws, are not reasonably related to resolve any ongoing issue or problem within the community, are vague and arbitrary, and tortuously interfere with current and prospective business of Plaintiff.” High Opportunity leases homes to voucher recipients and rents 21 properties in the neighborhood.

“Upon inquiry plaintiffs were informed that each of the following members who were board members at the time participated in the scheme to pass the rules. Because these members exceeded their authority, conspired to violate the law together, and acted in less than good faith, they are being sued individually,” the plaintiff’s petition reads.

The leasing rules passed June 6 by the association’s board would fine landlords $300 weekly for housing voucher recipients, including those in the middle of leases. Homeowners initially were told by association staff they had 30 days to comply with the ban, but after the Denton Record-Chronicle’s initial report, they were told June 15 that enforcement would begin 90 days after the rules were recorded with the county.

Local advocacy groups Texas Housers, the Texas Homeless Network and the United Way of Denton County asked the Justice Department to investigate the leasing rules in a June 17 letter. In a reversal, the association notified residents the following week that they would be allowed to finish their leases before relocating.

The voucher ban disproportionately impacts Black residents, who make up over 90% of the 157 voucher families in Providence Village. The Denton Housing Authority, which along with the Dallas Housing Authority has voucher recipients in the neighborhood, urged residents to file Fair Housing Act complaints following the rule changes.

“DHA is glad to hear this news [about the stay],” executive director Sherri McDade said in an email Thursday. “This will help a lot of families to remain in place, especially with the start of a new school year!”

Association member and Providence Village resident Daniel Puffer said he was glad to hear about the “long-overdue” rule stay.

“I think they [board members] should be voted out, I think the new rules should not just be suspended, they should be taken off the books officially — I think all this should be undone,” Puffer said. “Unfortunately, they allowed it to linger long enough for it to affect the community.”

At least one Section 8 resident and her children had already been displaced from the neighborhood as of last month.

Other rule changes, including the requirement for homeowners to register rental properties with the association by Sept. 15 and the ban on short-term rentals, remain in place.

The association board did not immediately respond to requests for comment about the announcement but told residents in the announcement they were “fully cooperating” with federal officials.

“PHOA and its property management company, FirstService Residential Texas, Inc., are fully cooperating with the HUD investigation and remain committed to ensuring that the Community continues to be the inclusive, diverse, family-friendly community that we all enjoy and call ‘home,’” the notice read in part.

Puffer said he hopes his community can find a way to come back together after the smoke clears.

“I think it will probably take a while before we really start seeing some healing,” Puffer said. “I’m just hoping we can get there.”