New Law Targets Business Structure of EPIC City Project
Gov. Greg Abbott signed into law a new bill that targets the business structure behind the planned Muslim-centric EPIC City project in northern Dallas-Fort Worth.
Abbott signed HB 4211 on Thursday, and the new law takes effect immediately. The bill’s primary author, Rep. Candy Noble, R-Lucas, said the legislation aims to protect investors who purchase ownership interests in a development.
Andrew Mahaleris, a spokesperson for the governor’s office, said Abbott was “proud” to sign the legislation to “defend our communities from any threats posed by EPIC City or other entities seeking to create a discriminatory or illegal compound.”
Community Capital Partners’ Response
Community Capital Partners, the for-profit entity established by members of the East Plano Islamic Center to oversee the project, has repeatedly said that it will adhere to the Fair Housing Act, as well as all other applicable state and federal guidelines. The community will be open to members of all religions.
It’s unclear if or how the bill may change the project. Attempts to contact the development group before publication were not returned.
New Law Requirements
The new law requires business entities to inform buyers that they are purchasing an interest in the business and not in any residential property itself.
The business may not charge a fee or receive proceeds if an investor sells the share. EPIC City would also not be allowed to cite religious organization exemptions in state law.
Homes on lots within parcels larger than 25 acres aren’t eligible for the exemption, meaning the developer couldn’t limit the sales to members of a certain religion.
EPIC City Project Details
Community Capital Partners hopes to build more than 1,000 homes, a K-12 faith-based school, a mosque, elderly and assisted living, apartments, clinics, retail shops, a community college and sports fields on 402 acres in Collin and Hunt counties.
Additional related neighborhoods, EPIC Ranches One and Two, are planned on 200 acres nearby. A website for the planned EPIC Ranches development is no longer operational.
The sites are located about 30 miles northeast of downtown Dallas.
Investor Requirements
EPIC City investors must be classified as an accredited investor under U.S. Securities and Exchange Commission guidelines — meaning they must have a net worth of over $1 million and an individual income of $300,000 or a household income of $300,000 over a period of time, according to documents published on the group’s website.
The first deadline to deposit funds was last April. Shares are still available for purchase.
Lot prices help Community Capital Partners cover the cost of the land purchase and the development of roads and utilities, a mosque, schools and parks.
Concerns and Controversies
“Is it a timeshare? Is it a co-op? Is it a MUD, a PID or an HOA? The answer is — it seems to be a little bit of all of those, and technically, none of them,” Noble said of Community Capital Partners during a legislative hearing about the bill. “What‘s not clear is whether investors actually own the land or just have access to it to build on it.”
Representatives for the development group previously said the law is not necessary.
The EPIC City project has drawn social media backlash and a series of government probes.
State officials have opened at least five investigations tied to the East Plano Islamic Center or the planned development under Abbott’s direction. The U.S. Department of Justice launched a civil rights investigation into the project last month.
Conclusion
The new law targeting the business structure of the EPIC City project has raised questions about the future of the development. While Community Capital Partners has stated that it will adhere to all applicable laws and guidelines, the project has faced significant controversy and scrutiny.
As the situation continues to unfold, it remains to be seen how the new law will impact the project and its investors.
Frequently Asked Questions
Q: What is the EPIC City project?
A: The EPIC City project is a planned Muslim-centric development in northern Dallas-Fort Worth, which will include over 1,000 homes, a K-12 faith-based school, a mosque, and other amenities.
Q: What is the new law targeting the EPIC City project?
A: The new law requires business entities to inform buyers that they are purchasing an interest in the business and not in any residential property itself, and prohibits the business from charging a fee or receiving proceeds if an investor sells the share.
Q: How will the new law impact the EPIC City project?
A: It is unclear how the new law will impact the project, as the development group has not commented on the matter. However, the law may change the way investors purchase interests in the development.
Q: What are the requirements for investors in the EPIC City project?
A: Investors must be classified as accredited investors under U.S. Securities and Exchange Commission guidelines, meaning they must have a net worth of over $1 million and an individual income of $300,000 or a household income of $300,000 over a period of time.
