Pauline Davis (plaintiff) filed suit against the New York City Housing Authority (NYCHA) (defendant) for violating the Fair Housing Act. Davis alleged that in accepting tenants for public housing, NYCHA discriminated against Latinos and African Americans on the basis of race. The case was settled by a consent decree. The consent decree created a tenant selection-and-assignment plan that contained certain eligibility standards. Several years later, NYCHA proposed to add a working-family preference to the eligibility standards. Davis opposed the working-family preference due to concerns that it would perpetuate racial segregation by favoring White families. Davis filed suit to enjoin NYCHA from implementing the working-family preference. The district court found that the working-family preference would perpetuate segregation at 20 NYCHA housing projects and enjoined its implementation at those projects. NYCHA appealed.