What do you mean that the housing authority refused based on the “status of the property”? What exactly was it that caused the housing authority to decline the lease? Has a foreclosure suit actually been filed? The lis pendens that budwad referred to should not be filed prior to the filing of a foreclosure lawsuit. In any event, if the status that is causing the housing authority to decline the lease is that your lender has started the foreclosure process, that is not illegal discrimination and there is no legal recourse for you there. The housing authority has a justified concern, after all: it does not want the qualifying tenant to be kicked out during the lease term or face other problems because of the foreclosure.