Texas Governor Greg Abbott has signed House Bill 4211, a new piece of legislation that specifically addresses the business structure surrounding the controversial EPIC City project planned for the northern Dallas-Fort Worth area.
The bill, which was signed on Thursday and takes effect immediately, aims to protect investors who engage with the development, according to its primary author, Rep. Candy Noble, R-Lucas.
Abbott expressed pride in supporting legislation designed to safeguard Texas communities from perceived threats by projects like EPIC City, which opponents argue may lead to discriminatory practices.
Community Capital Partners, a for-profit organization formed by members of the East Plano Islamic Center, has consistently asserted that it plans to comply with the Fair Housing Act and other relevant state and federal guidelines, insisting that the development will be open to individuals of all faiths.
Despite these assurances, the implications of House Bill 4211 on the future of EPIC City remain uncertain. Efforts to contact representatives from the development group for clarification went unanswered.
The new law imposes a requirement for business entities to clearly inform potential investors that they are acquiring an interest in the business—not ownership of any residential property.
Additionally, the legislation prohibits the business from charging fees or receiving proceeds if an investor decides to sell their share of the investment.
Another critical aspect of the bill is its restriction on the use of religious organization exemptions in state law.
The legislation stipulates that any homes built on parcels exceeding 25 acres will not benefit from such exemptions, effectively preventing the developer from limiting sales to members of any specific religion.
Community Capital Partners has ambitious plans for the EPIC City development, which spans 402 acres across Collin and Hunt counties. Proposed features include over 1,000 homes, a K-12 faith-based school, a mosque, assisted living facilities, apartments, clinics, retail spaces, a community college, and sports fields.
Additional developments, EPIC Ranches One and Two, are set to be developed over 200 acres nearby, although details about these neighborhoods remain sparse and the project’s associated website has been taken offline.
The invested funds from EPIC City must come from accredited investors as defined by the U.S. Securities and Exchange Commission. These investors must meet financial thresholds, including having a net worth exceeding $1 million or an individual or household income of at least $300,000 over a specified duration.
The initial investment deadline is looming in April 2024, with shares still available for purchase.
Funds from lot sales will be utilized to cover the expenses associated with land acquisition, road and utility construction, as well as other essential project amenities like schools and parks.
Should Community Capital Partners fail to proceed with the EPIC City development, the company has committed to selling the land and refunding the investors.
During a legislative hearing regarding the bill, Noble raised questions about the nature of Community Capital Partners, questioning whether it operated as a timeshare, co-op, municipal utility district (MUD), public improvement district (PID), or homeowners association (HOA).
She expressed uncertainty about whether investors genuinely own the land or merely have permission to build on it.
While representatives from Community Capital Partners defend the necessity of the legislation, they maintain that investors will receive true ownership of the land upon purchasing their lots and that they will not obstruct sales of homes within the community.
Future residents will have a five-year timeframe to construct a home once they acquire a lot, and they may choose from a pre-approved builder list or submit a request to utilize a custom builder.
Imran Chaudhary, president of Community Capital Partners, noted in a previous Q&A session that investors could transfer their shares only with prior approval from the firm.
However, the company emphasized the need to monitor these transfers to ensure adherence to state and federal regulations without limiting private transactions between individuals.
The EPIC City project has faced substantial backlash on social media, and government scrutiny has intensified with multiple investigations initiated by state officials, purportedly under Abbott’s direction.
Recently, the U.S. Department of Justice also opened a civil rights probe into the project amid ongoing concerns about its implications for discrimination.
As of now, the EPIC City project has not entered the development phase, and relevant plans have yet to be formally submitted to authorities. Although preliminary studies, including a traffic impact analysis, flood study, and environmental examination, have been completed, the project’s future remains in doubt.
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