HUD to Investigate Minneapolis Over Allegations of ‘Racial and Ethnic Favoritism’ in Housing Policy

The Trump administration says the city’s housing policies and support of ‘cultural districts’ are racially discriminatory, while city leaders call the investigation politically motivated.

1 minute read

January 23, 2026, 6:00 AM PST

By Diana Ionescu @aworkoffiction


Brick public housing building in Minneapolis, Minnesota.

A Minnesota public housing building. | Minneapolis Public Housing Authority / 37th Street Manor

The Department of Housing and Urban Development’s Office of Fair Housing and Equal Opportunity will investigate the city of Minneapolis for alleged violations of the Fair Housing Act, reports Julie Strupp in Multifamily Dive.

According to the FHEO, the city “may be engaging in unlawful discrimination by prioritizing Minneapolis residents for housing based on race and national origin rather than need.”

In a letter, the FHEO cites as an example the fact that Minneapolis’ “Community Planning and Economic Development department will prioritize ‘rental housing for Black, Indigenous, People of Color and Immigrant communities’ by ‘leveraging [its] rental licensing authority.’” The letter also calls the city’s support of cultural districts as racially discriminatory.

According to a city spokesperson, “This investigation appears to be about politics, not affordable housing.” HUD launched a similar investigation into the city of Boston in December of last year.

Tuesday, January 20, 2026 in Multifamily Dive

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