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

Housing Finance

Apr 07, 2026

Trump Seeks Nearly $11 Billion Cut to HUD Programs

President Trump has proposed a budget that would cut non-defense discretionary spending by $73 billion for fiscal year 2027, which runs from Oct. 1, 2026, through Sept. 30, 2027. The spending reductions include a $10.7 billion cut — about 13% — for the U.S. Department of Housing and Urban Development (HUD).

Sustainability and Green Building

Apr 06, 2026

Emerging Green Building Professional Spotlights Innovative Takeaways from IBS

The NAHB IBS Sustainability and Green Building Scholarship aims to provide emerging green builders exposure to the world of high-performance homes and help them jump-start their professional journey by attending the International Builders’ Show (IBS). This year’s winner is Grace Weger, a green builder making a meaningful impact in the world of affordable housing.

View all

Latest Economic News

Economics

Apr 07, 2026

Rising Rates Weigh on Mortgage Activity

Mortgage application activity decreased month-over-month as the 30-year fixed mortgage rate rose. The Mortgage Bankers Association’s (MBA) Market Composite Index, a measure of total mortgage application volume, declined 4.3% from February on a seasonally adjusted basis but remained 30.8% higher than a year earlier.

Economics

Apr 06, 2026

Which States and Construction Trades Depend the Most on Immigrant Workers?

Immigrants’ share of the construction workforce reached a record high in 2024, with foreign-born workers accounting for more than a quarter of the industry’s labor force (26.3%). The share is even higher among construction trades, for which one in three craftsmen is foreign-born.

Economics

Apr 03, 2026

Job Growth Rebounds in March

The U.S. labor market showed signs of a modest rebound in March following a weak February, as payroll employment increased and the unemployment rate edged down to 4.3%. Job growth was led by healthcare, construction, and transportation and warehousing.