PETOSKEY, Mich. — Federal housing authorities are investigating religious discrimination complaints against a Michigan resort community that requires homeowners to be of “Christian persuasion.”

The Petoskey News-Review reported that the U.S. Department of Federal Housing notified the Bay View Association last month that the community failed to prove it’s exempt from a law prohibiting discriminatory practices.

The community near Petoskey requires cottage owners to have a pastor or church leader attest to their church membership or attendance.

Some residents have filed a federal lawsuit to overturn the rule. Attorney Sarah Prescott filed the lawsuit on behalf of the residents. She told Michigan Radio it’s a First Amendment issue. A hearing is scheduled for July 30.

Dick Crossland is a longtime Bay View resident. He said residents joined the community knowing the Christian mission and bylaws.