DALLAS — Dallas and federal officials have reached an agreement to resolve a case in which two developers accused the city of discrimination after Dallas' Office of Economic Development denied a request for subsidies to redevelop a downtown high-rise.
The developers filed a complaint with the U.S. Department of Housing and Urban Development in 2010, claiming the office's director told them downtown Dallas wasn't the right location for low-income housing.
The federal agency told the city that it had found "a pattern of negative reactions to projects that would provide affordable housing in the northern sector of Dallas and that those decisions were inconsistent with the goals required by HUD program obligations."
Dallas challenged the findings, requesting a review of the investigation.
Dallas and the federal agency resolved the dispute Wednesday, the Dallas Morning News (http://bit.ly/1ElfO3x ) reported. Dallas won't have to pay the department or the developers money. It said in a statement that it admits to no wrongdoing.
The federal housing agency acknowledged in the agreement that "some of its findings are incorrect," the city said.
"Once they had the information we were able to give them it is pretty clear they recognized that some of it was wrong," City Manager A.C. Gonzalez said. "They could see we had good work programs, and we are working with them and we are on a path of continuing that good work."
Under the agreement, Dallas must continue developing its Neighborhood Plus plan that focuses on neighborhood issues. It also will host a regional housing conference.
Information from: The Dallas Morning News, http://www.dallasnews.com
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