[2] The original deed included a racial covenant that restricted homeowners from selling or leasing their houses to any groups other than "the Caucasian race."
During that year the United States Department of Justice sued the subdivision to force it to remove the racial covenant, which was deemed illegal by the 1968 Fair Housing Act.
The defendants were John Baust, the civil club president, and Anita Rodeheaver, the Harris County Clerk.
In the lawsuit papers, the subdivision argued that deleting the racial covenant would jeopardize the other provisions from the original deed.
Doug Erwing, who was at the time the president of the University Oaks Civic Club, announced support for plans to increase retail offerings and added that he would prefer redevelopment that fit with the neighborhood such as lower-rise dormitories as opposed to high rise dormitories.