Federal Investigation into EPIC City Ends as Developers Affirm Inclusivity and Commitment to Fair Housing

DOJ Closes Civil Rights Inquiry into North Texas Muslim-Centric Project

The U.S. Department of Justice has officially ended its investigation into EPIC City, a proposed 402-acre residential and commercial development in Collin and Hunt counties, Texas. The inquiry was initiated amid concerns of potential religious discrimination tied to the development’s Islamic-centered identity. However, the project’s developers, Community Capital Partners (CCP), confirmed their full commitment to inclusivity and compliance with the Fair Housing Act, prompting the DOJ to close the case.

In a letter dated June 13, Assistant Attorney General Harmeet Dhillon wrote that CCP had assured the department that EPIC City would welcome all individuals, regardless of faith or background. Additionally, CCP committed to revising its marketing materials to reinforce this inclusive message.

“CCP has affirmed that all will be welcome in any future development, and that you plan to revise and develop marketing materials to reinforce that message consistent with your obligations under the Fair Housing Act,” the letter stated.

Vision for EPIC City in Collin and Hunt Counties

EPIC City is an ambitious development located near Josephine, Texas. The project encompasses over 1,000 homes, apartments, and townhomes, as well as commercial spaces, a K-12 school, and a mosque. Designed to serve a growing and diverse population, the development has gained attention due to its inclusive Islamic cultural inspiration.

Though the first phase of roughly 500 lots sold out within six months, the project is still in the early stages of physical development. Preliminary studies involving traffic, water, and flood management have been completed, and the permitting process is expected to begin in mid to late 2025. The full buildout could take several years to complete.

Nearby, a companion project known as EPIC Ranches offers larger lot sizes and is positioned about half a mile from the core EPIC City site.

State-Level Scrutiny Remains Ongoing

Despite the conclusion of the federal inquiry, EPIC City still faces scrutiny from Texas state officials. Governor Greg Abbott and Attorney General Ken Paxton, along with other agencies, have launched separate investigations related to the project's structure, environmental impact, and religious operations.

Governor Abbott recently signed House Bill 4211, a new law aimed at ensuring transparency in the development’s investor model. The law requires disclosure to buyers that they are investing in a business interest rather than purchasing residential real estate directly. It also forbids any religious organization from using faith-based exemptions to limit property sales, reinforcing state and federal housing discrimination laws.

Under the bill, investors can resell their stakes without incurring fees from the development entity. The law also strengthens regulatory oversight over how future sales and business activities tied to the project are managed.

Response from Muslim Advocacy Groups

The decision by the DOJ to drop its investigation was praised by civil rights advocates who previously argued that the project was being unfairly targeted because of its religious and cultural orientation.

The Council on American-Islamic Relations (CAIR) welcomed the DOJ's conclusion, calling on Texas officials to cease what it described as politically motivated attacks on the Muslim community. The group had accused Texas leaders of “zoning harassment” and “discriminatory enforcement.”

“We welcome the dropping of this investigation and hope the DOJ’s actions send a clear message to the governor and other officials in Texas that they should similarly drop their Islamophobic witch hunt,” said CAIR’s national leadership.

Texas Agencies Continue Investigations

Texas state authorities continue to monitor several aspects of the project:

Attorney General Paxton is examining communications between CCP and municipal leaders in Plano, Richardson, and Wylie, raising questions about zoning and potential political favoritism.

Governor Abbott has directed the Texas Rangers to investigate the mosque and affiliated businesses, making headlines with comments on social media, including a declaration that “Sharia law is not allowed in Texas.”

The Texas Commission on Environmental Quality sent a notice to CCP regarding permits necessary to establish a municipal utility district for EPIC City.

The Texas Funeral Service Commission and Texas Workforce Commission have also sent inquiries related to funeral services and workforce policies.

In response, CCP hired prominent attorney Dan Cogdell in April to represent the project and defend against ongoing state-level investigations.

Legal Perspective and Next Steps

Constitutional law experts note that while the DOJ found no violations, state investigations may still proceed under Texas laws that prohibit housing discrimination and govern land development. Legal experts emphasize that the state does have the right to ensure compliance with environmental and business transparency laws.

Despite the challenges, developers remain optimistic. With the federal cloud lifted and strong investor interest in its second phase, EPIC City is positioning itself as a culturally inclusive, master-planned community that reflects the growing diversity of North Texas.

EPIC City continues to move forward with its long-term vision despite facing legal and political headwinds. The closing of the DOJ investigation marks a significant milestone, reinforcing the developers’ message of openness and fair housing for all. As permitting begins and development progresses, all eyes will remain on how Texas officials balance religious freedom, regulatory compliance, and housing policy in this closely watched project.