HUD Restores FHIP Grants After Judge Issues Temporary Restraining Order

Judge Richard G. Sterns of the U.S. District Court in the District of Massachusetts issued a Temporary Restraining Order (TRO) on March 26 reinstating 78 Fair Housing Initiatives Program (FHIP) grants. Complying with the TRO, HUD sent a Memorandum to all FHIP organizations on March 27 restoring their FHIP grants. Four fair housing organizations, all members of the National Fair Housing Alliance, filed a class action lawsuit on March 13 against HUD and the Department of Government Efficiency (DOGE) following HUD’s sudden and unlawful termination of grants to carry out activities under FHIP (see Memo, 3/17). The class action lawsuit was brought on behalf of 66 fair housing groups whose FHIP grants were “arbitrarily terminated without notice, reason, or sensible explanation” on February 27, 2025 – jeopardizing $30 million in congressionally authorized funding intended to counter housing discrimination and enforce fair housing laws.  

The unexpected and abrupt cancellation of FHIP grants came through identical form letters explaining that HUD was terminating the grants “at the direction of [the] Department of Government Efficiency, ‘pursuant to’ the executive order establishing that body.” HUD said the grants were being terminated because they “no longer effectuate the program goals or agency priorities.” However, the “Fair Housing Act” describes the purpose of FHIP grants to enable fair housing groups to identify and remedy “discrimination in public and private real estate markets and real estate-related transactions;” develop ways of “respond[ing] to new or sophisticated forms of discrimination;” bring enforcement capacity to underserved areas of the country; and conduct education and outreach to inform people of the Fair Housing Act, urge them to follow it, and point out that it protects them. 

The Termination Notices did not refer to the FHIP statute, the implementing regulations, or any specific program goals or agency priorities, nor did it explain how the organizations’ activities fail to effectuate the program goals or agency priorities. The Termination Notices did not offer the fair housing organizations any advance notice or opportunity to correct any deficiency. The Termination Notices did not cite any of the terms and conditions of the awards, or any violations. 

Read the TRO at: https://tinyurl.com/3dvxnyez. 

Read HUD’s Memorandum reinstating FHIP grants at: https://tinyurl.com/2s374vkn. 

Read the National Fair Housing Alliance’s media release at: https://tinyurl.com/yb52fws8. 

HUD’s redesigned Fair Housing website has a link to FHEO Programs and Initiatives, where more information about FHIP is available at Fair Housing Initiatives Program. However, a number of links do not currently work, for example the links Search FHIP Organizations, Previously Awarded Grants, and FHIP Archive. 

More information about FHIP is on page 8-5 of NLIHC’s 2024 Advocates’ Guide.