The report said the decision comes less than two weeks before the show was to premiere, the report said.
"Neighborhood" is about finding whether people from different social classes and ethnic groups can be accepted by a white, upper-middle class Texas community.
While the show exposed the apparent prejudices of the community, it also made it clear at the start that all involved end up learning "life lessons" by the end of the series.
But before seeing the entire series, several fair housing groups had made it clear they were opposed to the show, with some claiming it may violate federal fair housing laws, Variety said.
ABC did not say when the show might return.
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