HUD Opens Civil‑Rights Investigation Into Minneapolis Race‑Based Housing Priorities
The U.S. Department of Housing and Urban Development has opened a formal civil‑rights investigation into the city of Minneapolis, alleging that its housing policies unlawfully prioritize resources based on race and national origin in violation of the Fair Housing Act and Title VI. In a Thursday letter to Mayor Jacob Frey, HUD Fair Housing and Equal Opportunity Assistant Secretary Craig Trainor cited language in the city’s "Minneapolis 2040" comprehensive plan and its Strategic and Racial Equity Action Plan, including directives that the Community Planning and Economic Development department prioritize rental housing for Black, Indigenous, people of color and immigrant communities. HUD Secretary Scott Turner told Fox News the probe is tied to what he calls Minnesota’s "cynical game of racial and ethnic politics" and is being launched against the backdrop of a separate, sprawling fraud scandal in state‑administered social‑services programs. If HUD ultimately finds violations, Minneapolis could face requirements to change its housing plans or risk its federal funding, a warning shot for other jurisdictions that have built race‑conscious equity goals into housing and planning documents. The investigation puts federal muscle behind a long‑brewing legal fight over how far cities can go in explicitly race‑targeted housing policies while still taking HUD dollars.
📌 Key Facts
- HUD has opened a Fair Housing Act and Title VI investigation into Minneapolis housing policies, notified via a Thursday letter to Mayor Jacob Frey.
- Assistant Secretary Craig Trainor’s letter flags Minneapolis’s "2040" plan and Strategic and Racial Equity Action Plan, including a directive to prioritize rental housing for "Black, Indigenous, People of Color and Immigrant communities" by leveraging rental licensing authority.
- HUD Secretary Scott Turner links the probe to what he calls Minnesota’s broader "fraud and corruption" tied to racial politics and a COVID‑era social‑services fraud scandal prosecutors say may reach more than $9 billion.
📊 Relevant Data
In Minneapolis, White non-Hispanic households have a homeownership rate of over 59%, while African-American and American Indian households have rates less than 21%, and Hispanic households have rates under 25%.
Eliminate disparities — Minneapolis 2040
Minnesota's median household income is $80,862 for White households and $47,739 for Black households, contributing to racial disparities in housing access.
Examining Minnesota's Current Homeownership Gap — Twin Cities Habitat for Humanity
Minneapolis racial demographics are 60.1% White, 18.2% Black, 9.8% Hispanic or Latino, 5.6% Asian, 4.7% Two or more races, and 1% American Indian (2017-2021).
2022 Inclusionary Zoning Annual Report and Unified Housing Policy Updates - REIA — City of Minneapolis
Minnesota has over 75,000 people of Somali ancestry, with a significant concentration in Minneapolis, representing about 2% of the state's population.
Somali Immigrants in Minnesota — Center for Immigration Studies
Federal prosecutors have charged over 70 people, mostly from Minnesota's Somali community, in a COVID-era fraud scheme involving more than $300 million from child nutrition programs, with total fraud estimates potentially exceeding $9 billion across various programs.
How Fraud Swamped Minnesota’s Social Services System on Tim Walz’s Watch — The New York Times
Black homeownership rates in Minnesota have declined steadily since the 1970s, particularly among U.S.-born Black families, while rates for Black immigrants have increased.
The Topline: A staggering drop in Black homeownership — Minnesota Reformer
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