So... I made a friend on AC recently and we were getting on okay. However, recently it's changed. 
When I visit his place he FORCES me to donate to his projects (that's his condition for opening the gate) and all of his villagers are homophobic. Many of them call me 'fagg' for no reason and now some of the villagers are starting to say 'nibba' to me...
When I invite my friend over to my town (free of charge of course) he leaves hateful comments on my noticeboard that I only discover days down the line. Stuff like 'this town is a Detroit toilet' and 'faggs are wrong'. I didn't call him out on it because he's pretty much my only friend in the game right now...
What should I do?

When I visit his place he FORCES me to donate to his projects (that's his condition for opening the gate) and all of his villagers are homophobic. Many of them call me 'fagg' for no reason and now some of the villagers are starting to say 'nibba' to me...
When I invite my friend over to my town (free of charge of course) he leaves hateful comments on my noticeboard that I only discover days down the line. Stuff like 'this town is a Detroit toilet' and 'faggs are wrong'. I didn't call him out on it because he's pretty much my only friend in the game right now...
What should I do?