African American

I've never heard "lily white" used as a homophobic pejorative...now I have heard a very few black gays use but that's not as a homophobic term...

I can even cite my source...was surprised to find this in my files (I thought that I had trashed this once I no longer needed it)...

There's an old Chicago Defender story from 1916, I believe, headlined "White Lady Finds No 'Jim Crow' Cars in This City...it's a news story about a woman identified in the story as a "stubborn southern winch" who wanted to make a black woman give up her seat on a bus in Chicago. The black woman refused to move and the white woman spit on her...the white woman was arrested and released...I don't have the second page of the story but I do remember the use of the term "lily white" in the story and you can find the term more frequently than you might think in black newspapers circa 1910-1950.

It was not being used as a homophobic slur.

Now, I am not going to say that you haven't heard it used that way...but that would have been in a very different context not applicable to this context.

EDIT: You might also want to look at another use of the term which goes back to the 19th century and is quite applicable to today's politics

https://en.wikipedia.org/wiki/Lily-white_movement