HUD Withdraws Proposed Affirmatively Furthering Fair Housing Rule

Key Takeaways

Update

On January 16, 2025 the U.S. Department of Housing and Urban Development (HUD) published in the Federal Register a withdrawal of a proposed affirmatively furthering fair housing (AFFH) rule from February 2023. The 2023 proposed rule incorporated much of the framework of a 2015 AFFH rule and would have required program participants to submit an equity plan to HUD every five years. Currently, HUD does not intend for a final rule to be issued and if there are further regulations on the topic, HUD will issue a new notice of proposed rulemaking.

Background

On April 24, 2023 NACo submitted comments in conjunction with the National Association for County Community and Economic Development (NACCED) on the U.S. Department of Housing and Urban Development’s (HUD) proposed rule to implement and “fulfill the promise of” the Affirmatively Furthering Fair Housing (AFFH) mandate. AFFH, which was established under the 1968 Fair Housing Act, directs the government to promote fair housing choice, eliminate disparities in housing, and foster inclusive communities.

The proposed rule, which incorporates much of the framework of the 2015 AFFH rule, streamlines the required fair housing analysis for local governments, states and public housing agencies. Program participants would be required to submit to HUD an “equity plan” for approval every five years. In addition to the five-year equity plans, the proposed rule would require program participants to incorporate goals and strategies from their accepted equity plans into subsequent planning documents, such as annual action plans and public housing agency plans.

NACo and NACCED’s comments emphasized incorporating equity plan progress reports into existing HUD reporting structures, and to set equity plan guidelines concurrent with consolidated plans, annual action plans, and PHA plans in order to decrease counties’ staff and consulting costs when preparing these reports. Comments urged for HUD to consolidate the proposed rule’s public feedback requirements with grantee’s already required community outreach efforts, increase administrative assistance caps, and integrate language regarding protected classes in existing programs and reporting processes to strengthen fair housing objectives.

Additionally, counties urged for HUD to structure equity plan requirements to commensurate with the grantee’s size and capabilities, revaluate the equity plan’s 60 required feedback questions to ensure they are clear and concise, and recommended for HUD to place a safe harbor provision in the proposed rule that protects grantees acting in good faith to comply with fair housing initiatives. Comments also included the recommendation for HUD to work with grantees to develop a complaint and enforcement process.

Counties are committed to decreasing impediments to fair housing, strengthening access to affordable housing opportunities, and working alongside HUD to promote transparent and effective fair housing laws to achieve these critical goals.