Report alleges potential legal violations tied to nonprofit-backed Muslim housing project as officials weigh further scrutiny.
By yourNEWS Media Newsroom
Rep. Keith Self (R-Texas) is urging additional federal investigations into a proposed residential development in North Texas following a report raising legal and constitutional concerns about the project’s structure and operations.
The development, known as “EPIC City,” is being advanced by the East Plano Islamic Center and would span roughly 400 acres near Josephine, Texas, outside the Dallas metropolitan area. Plans for the project include residential housing, a mosque, schools and commercial spaces, according to The Daily Signal.
A report released Thursday by the Oversight Project alleges the development may violate multiple federal laws, including those governing tax-exempt organizations, housing discrimination, and securities practices. The report claims the nonprofit religious organization established a for-profit entity, Community Capital Partners, to develop the project and direct financial returns back to the nonprofit.
Epic City Report by yourNEWS Media
“The Oversight Project’s bombshell report indicates that the East Plano Islamic Center (EPIC) is violating federal tax law, civil rights law, securities law, and housing law. If true, EPIC should have their 501(c)(3) tax-exempt status revoked,” Self said.
Self called on the Internal Revenue Service and the U.S. Department of Justice to initiate new investigations, in addition to an existing inquiry by the U.S. Department of Housing and Urban Development into potential housing discrimination.
The watchdog report states that Community Capital Partners sold investment shares—often priced around $80,000—to individuals seeking to build homes within the development. It estimates that nearly 500 lots were sold, generating approximately $40 million in capital. The report further alleges that early marketing efforts targeted Muslim buyers exclusively, raising potential concerns under federal and state fair housing laws.
The project’s organizers have denied wrongdoing. An attorney representing the development, Dan Cogdell, said in comments reported by the Associated Press that his clients “have done nothing illegal and we will cooperate fully with all investigations—regardless of how misguided and unnecessary they are.” He added that the allegations are “completely without merit and totally misleading.”
Federal authorities have previously examined aspects of the project. The Justice Department’s Civil Rights Division opened an inquiry last year at the request of Sen. John Cornyn but later closed the investigation after developers indicated the community would be open to all. Assistant Attorney General Harmeet Dhillon said the developers committed to revising marketing materials to reflect compliance with fair housing requirements, according to a statement.
At the state level, Texas Attorney General Ken Paxton has filed two lawsuits related to the project. One, filed in December 2025, alleges violations of state securities laws connected to the sale of investment shares. A second action challenges the legality of a municipal utility district created to support the development.
A court in Collin County issued a temporary restraining order on March 19, followed by a temporary injunction on March 30, preventing the proposed utility district from taking further action.
Despite the legal challenges, the development has attracted significant interest. The Oversight Project report notes that initial offerings for the community sold out within days of its announcement in 2024.
Lawmakers and regulators continue to review the project as questions remain about its compliance with federal and state laws governing nonprofit organizations, housing practices, and constitutional protections.
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