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
Aug 17, 2026
Affordability Pressures Keep Builder Confidence Low

Builder confidence in the market for newly built single-family homes inched up one point to 35 in August, according to the NAHB/Wells Fargo Housing Market Index (HMI) released today.

Regulations | Environmental Issues
Aug 14, 2026
Administration Acts on 3 Key NAHB Deregulatory Priorities

Two regulations will become effective under the Endangered Species Act (ESA) on Aug. 20, and a third final rule rescinding the ESA’s 45-year-old “harm” regulatory definition becomes effective next month.

View all

Latest Economic News

Economics
Aug 17, 2026
Consumer Credit Slowed in Q2

In the second quarter of 2026, consumer credit growth slowed over the quarter and was lower than a year ago. According to the Federal Reserve’s G.19 Consumer Credit Report, total outstanding U.S. consumer credit reached $5.17 trillion in the second quarter of 2026.

Economics
Aug 17, 2026
Affordability Pressures Keep Builder Confidence Low

Builder sentiment remains muted from economic and geopolitical uncertainty, elevated mortgage rates and rising construction costs.

Economics
Aug 14, 2026
Single-Family Permitting Declines Through June in Contrast to Multifamily

Single-family permitting activity continued to weaken through the first half of 2026, while multifamily permitting remained somewhat stronger compared with the same period last year.