HUD recently announced that it has repealed the Affirmatively Furthering Fair Housing (AFFH) rule. HUD Secretary Scott Turner stated that ending the rule will “cut expensive red tape” and give state and local governments more autonomy over development and zoning decisions.

The AFFH rule, rooted in a section of the 1968 Fair Housing Act, was designed to combat housing discrimination and segregation by requiring local governments to take proactive steps toward fair housing goals. The idea of “affirmatively furthering fair housing” originates from the Fair Housing Act of 1968, which not only banned housing discrimination but also mandated that federal agencies and grant recipients work actively toward fair housing objectives.

For many years, however, this requirement lacked a formal enforcement mechanism until the Obama administration strengthened it. At that time, HUD introduced an official AFFH regulation that expanded federal oversight of local zoning and housing policies. Under the rule, jurisdictions receiving HUD funds had to conduct extensive analyses of fair housing issues in their communities. Local governments were required to complete a 92-question assessment tool and submit detailed reports identifying fair housing barriers and outlining plans to address them. The goal was to ensure that cities and counties actively worked to reduce segregation and increase access to affordable housing in high-opportunity areas.

"Expensive, Complicated, and Ineffective"

Later, during President Trump’s first term, the AFFH rule was effectively dismantled. HUD, under Secretary Ben Carson, suspended the Obama-era requirements, calling the 2015 rule “expensive, complicated, and ineffective.” In 2020, it was replaced with a much simpler policy—the “Preserving Community and Neighborhood Choice” rule. Under this approach, a jurisdiction simply had to pledge that it was taking any action remotely related to fair housing (even minimal efforts), and it would be deemed in compliance. This change removed detailed assessments and federal oversight, effectively shifting most decision-making power back to local officials.

Then, early in his presidency, President Biden took steps to reinstate the AFFH rule. HUD repealed the Trump-era policy and reinstated key provisions of the 2015 rule. In 2021, an interim rule once again required jurisdictions to actively monitor and address fair housing challenges, and in 2023, HUD proposed an even stronger AFFH rule that would require more aggressive action from localities to promote equity. The Biden administration made AFFH a central part of its strategy to expand access to affordable housing and reverse historical patterns of segregation.

"Returning Local Control to Communities"

Current HUD Secretary Scott Turner has criticized the Obama/Biden AFFH framework as federal overreach, calling it a “zoning tax” that drove up development costs and restricted housing supply. By repealing the rule, HUD now allows local governments to simply certify that they are “affirmatively furthering fair housing” without needing to meet more stringent requirements.

With AFFH requirements lifted, local governments now have more freedom in zoning and land-use decisions. HUD’s decision is explicitly aimed at “returning local control to communities.” This could make development easier in areas that previously felt constrained by federal oversight. Developers may face fewer federal hurdles—for example, a suburb that was previously concerned about losing HUD funding due to restrictive zoning policies may no longer have that concern. 

Impact on Affordable Housing Development

On the flip side, however, communities with a history of restrictive or exclusionary zoning now have less external pressure to change. In practice, this could mean fewer local initiatives to expand housing choices such as incentive zoning or partnerships to bring low-income housing tax credit (LIHTC) properties into higher-income suburbs.

AFFH had encouraged and, in some cases, forced local governments to reconsider zoning laws that restricted multifamily or affordable housing. Without that push, developers that use LIHTCs may find it more difficult to get rezoning approvals in high-income or exclusionary neighborhoods, as local governments may feel less of an obligation to accommodate affordable housing.

It’s important to note that the repeal of the AFFH rule does not eliminate fair housing responsibilities. Core fair housing laws remain fully in effect. 

For landlords, day-to-day compliance with non-discrimination rules as applied to tenant selection, marketing, and accommodations remain unchanged. These responsibilities continue to be governed by the Fair Housing Act and related regulations.