HUD Proposes New ‘Affirmatively Furthering Fair Housing’ Rule

Codes and Standards
Published

HUD announced a new proposed Affirmatively Furthering Fair Housing (AFFH) rule this week that represents a significant departure from the Obama-era final rule released in 2015.

Under the 20415 AFFH rule, as a condition of receiving certain HUD funds, state and local governments and public housing agencies (PHAs) must work to identify barriers to fair housing choice, ensure that their practices and policies do not promote racial segregation, and complete costly, administratively burdensome Assessment of Fair Housing plans.

In a press release, HUD said that the 2015 AFFH rule was “ineffective, highly prescriptive and effectively discouraged the production of affordable housing.”

The new AFFH rule is intended to relieve the heavy administrative burdens on program participants. HUD is revising the onerous reporting requirements and codified language of the 2015 regulation. The new rule also considers the supply and quality of affordable housing in a jurisdiction.

Key elements of HUD’s proposed new AFFH rule:
  • Requires jurisdictions to identify three fair housing obstacles/goals within their control that they will address over five years as part of their AFFH certifications;
  • Ranks jurisdictions based on metrics;
  • Fully incorporates AFFH into jurisdictions' Consolidated Plans and require jurisdictions to report progress through their annual plans;
  • Allows, but does not require, jurisdictions to make changes to zoning or land-use policies as one method of complying with their AFFH obligation;
  • Eliminates the costly and burdensome Assessment of Fair report; and
  • Requires PHAs to participate in the development of a consolidated plan process and file their AFFH certifications.

The proposal also substantially revises the definition of AFFH.

The current regulation defines AFFH as “taking meaningful actions that, taken together, address significant disparities in housing needs and in access to opportunity, replacing segregated living patterns with truly integrated and balanced living patterns, transforming racially and ethnically concentrated areas of poverty into areas of opportunity, and fostering and maintaining compliance with civil rights and fair housing laws.”

HUD proposes changing the definition of AFFH to “advancing fair housing choice within the program participant’s control or influence.”

Comments on the proposal are due 60 days after it is published in the Federal Register.

For more information, contact Michelle Kitchen at 800-368-5242 x8352.

Subscribe to NAHBNow

Log in or create account to subscribe to notifications of new posts.

Log in to subscribe

Latest from NAHBNow

Economics | Housing Affordability

Feb 24, 2026

Falling Mortgage Rates Make Homeownership Possible for Millions of Households

The average interest rate on a 30-year fixed-rate mortgage fell to around 6% last week, the lowest rate borrowers have seen in close to three years. Borrowers will not only enjoy lower monthly payments at that rate, but it also makes homeownership possible for millions more.

Material Costs

Feb 23, 2026

Supreme Court Strikes Down Trump’s Tariffs – But Uncertainty Persists

The Supreme Court on Feb. 20 ruled that President Trump’s attempts to use emergency powers under the International Emergency Economic Powers Act (IEEPA) was not valid. But Trump still has wide latitude in setting tariff policy and announced a new global tariff of 15%. American consumers and businesses are unsure how any new tariffs will affect them.

View all

Latest Economic News

Economics

Feb 24, 2026

Young Adult Headship Rates in 2024: Cyclical Slip or New Equilibrium?

Reversing the post-pandemic rebound, the headship rates among young adults (the share of the population heading their own households) declined in 2024, according to NAHB’s analysis of the American Community Survey (ACS) data.

Economics

Feb 23, 2026

A 25-Basis-Point Decline in the Mortgage Rate Prices-In 1.42 Million Households

Housing affordability remains a critical challenge nationwide, and mortgage rates continue to play a central role in shaping homebuying power. Although rates have declined from the recent peak of about 7.6% in 2023 to around 6.01% as of February 19,2026, they remain elevated relative to typical levels in the 2010s.

Economics

Feb 20, 2026

New Home Sales Close 2025 with Modest Gains

New home sales ended 2025 on a mixed but resilient note, signaling steady underlying demand despite ongoing affordability and supply constraints. The latest data released today (and delayed because of the government shutdown in fall of 2025) indicate that while month-to-month activity shows a small decline, sales remain stronger than a year ago, signaling that buyer interest in newly built homes has improved.