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 | Multifamily

Nov 25, 2025

Fannie, Freddie Multifamily Loan Purchase Caps to Rise 20% in 2026

The Federal Housing Finance Agency (FHFA) announced yesterday that the 2026 multifamily loan purchase caps for Fannie Mae and Freddie Mac will be $88 billion each, for a combined total of $176 billion to support the multifamily market — a 20.5% increase from 2025.

Economics

Nov 24, 2025

Young Adults Are Once Again Moving Back Home

The share of young adults living with their parents increased in 2024, interrupting the post-pandemic trend of individuals ages 18-34 moving out of parental homes.

View all

Latest Economic News

Economics

Nov 20, 2025

September Jobs Report Highlights a Cooling but Still Growing Labor Market

The long-delayed September jobs report revealed that the U.S. economy added 119,000 jobs while the unemployment rate climbed to its highest level in nearly four years.

Economics

Nov 20, 2025

Existing Home Sales Rise in October

Existing home sales rose to an eight-month high in October as buyers took advantage of lower mortgage rates, according to the National Association of Realtors (NAR). Resale inventory improved from a year ago but remained below pre-pandemic levels.

Economics

Nov 19, 2025

Affordability Impacts: Young Adults Are Once Again Moving Back Home

The share of young adults living with parents increased in 2024, interrupting the post-pandemic trend of moving out of parental homes.