The Department of Housing and Urban Development (HUD) has announced the termination of a controversial housing regulation initially established during the Obama administration, citing concerns over bureaucratic burden and housing affordability challenges. The rule, known as Affirmatively Furthering Fair Housing (AFFH), had experienced a back-and-forth journey through three administrations before this latest decision.
The regulation, which was first implemented in 2015, required local governments and housing agencies receiving federal funding to complete extensive documentation regarding housing opportunities and
environmental factors. This included answering 92 questions about various aspects of housing disparities and community conditions.
HUD Secretary Scott Turner explained that the rule effectively created a “zoning tax” that increased costs and decreased affordable housing availability due to restrictions on local land use. The decision to terminate the rule aims to reduce administrative burdens on localities and restore decision-making authority to state and local governments.
Under the new guidance, communities will only need to certify their compliance with fair housing requirements as outlined in the Fair Housing Act, which prohibits housing discrimination based on race, color, sex, religion, national origin, familial status, and
disability.
The AFFH rule has had a contentious history, with the Trump
administration first abolishing it in 2020, followed by the Biden administration reinstating its core provisions in 2021. Critics of the original rule, including Senator Mike Lee of Utah, had argued that it gave federal bureaucrats excessive control over local housing decisions and neighborhood composition.
Democratic leaders have voiced strong opposition to the rule’s termination. Representatives Maxine Waters and Elizabeth Warren released a joint statement criticizing the decision, arguing that it undermines efforts to combat housing discrimination and makes housing less accessible to vulnerable populations, including people of color, veterans, seniors, and individuals with disabilities.
The announcement follows President Trump’s recent memorandum addressing the nation’s cost-of-living crisis, which highlighted how regulatory requirements contribute approximately 25 percent to new home construction costs. Secretary Turner, who was confirmed by the Senate in February with a vote of 55-44, has emphasized his commitment to addressing the national housing crisis and reducing development costs.
During his confirmation hearing, Turner acknowledged that homelessness in the United States had reached unprecedented levels, describing it as a “national embarrassment” that requires immediate attention. The HUD’s latest action reflects the administration’s broader strategy to reduce housing costs and expand housing availability by minimizing federal oversight.
Under the revised approach, local authorities will maintain greater autonomy in making decisions about zoning, construction, and transportation within their jurisdictions. HUD officials argue that this decentralized approach will better serve community needs, as local leaders possess a more intimate understanding of their areas’ specific requirements compared to federal administrators.
The decision represents a significant shift in federal housing policy, prioritizing local control and reduced regulatory burden over centralized oversight. While supporters argue this will lead to more efficient and cost-effective housing development, opponents maintain that federal oversight remains necessary to ensure fair housing practices and prevent discrimination in the housing market.
Despite the controversy, HUD maintains that the termination of the AFFH rule will protect neighborhood integrity while still upholding the fundamental principles of fair housing as established by the Fair Housing Act, marking a notable change in the federal government’s approach to housing policy implementation and oversight.