Aventurine One, LLC v. The City of Marshall (E.D. Tex.)

On January 11, 2024, the court denied the City of Marshall’s motion to dismiss the plaintiff’s complaint, including its Fair Housing Act (FHA) claim, in Aventurine One, LLC v. The City of Marshall, Texas (E.D. Tex.). The 

 in this case alleges, in part, that the City of Marshall violated the FHA by denying a special use permit for the plaintiff’s proposed Low-Income Housing Tax Credit development based on discriminatory objections raised in public hearings. On December 21, 2023, the United States filed a Statement of Interest, explaining that comments that do not directly reference a protected class may nevertheless be indicative of discriminatory animus, and clarifying that municipalities can be held liable under the FHA for capitulating to constituents’ discriminatory motives.