February 28, 2025

HUD ends Obama-era zoning rules Trump claims "destroy" home values

The U.S. Department of Housing and Urban Development has recently made a decisive move by eliminating a significant regulation from the Obama era. The rule, known as Affirmatively Furthering Fair Housing (AFFH), was seen as a measure imposing stringent demands on local developers.

Fox News reported that the decision allows localities to independently verify their adherence to anti-discrimination laws, promising to reduce costs and address the housing needs of diverse communities.

The original AFFH rule, implemented during President Barack Obama's administration, aimed to address disparities by obligating local entities to undergo meticulous evaluations and analyses.

These analyses focused on ensuring that new housing projects did not widen disparities among different societal groups with regard to resource accessibility.

Concerns Over Housing And Zoning

In a bold move during his first administration, President Donald Trump decided to rescind the AFFH regulation. Trump argued that the rule potentially reduced single-family zoning, which could negatively impact property values—a concern he suggested would primarily benefit bureaucrats in Washington with left-leaning ideologies.

The resurgence of this rule was attempted by then-President Joe Biden, only to be shelved later due to a mix of political calculations and external pressure. With the latest steps taken by HUD, the AFFH regulation is once again dismantled, following a new rulemaking initiative just announced on Wednesday.

Proponents of dismantling the rule have highlighted the burdens it placed on local housing authorities. Critiques, such as those voiced by Scott Turner, pointed out that past regulatory demands created undue pressure on the budgets and resources of local developers.

The requirements, as they stood, necessitated substantial paperwork and compliance efforts, redirecting focus from the genuine needs of the communities they intended to serve.

Instead of relying on federal oversight, local governments now have the autonomy to certify their compliance with existing anti-discrimination laws found within the Fair Housing Act of 1968. This shift promises not only to allocate local resources more effectively but also to foster an environment of fair and affordable housing development in a self-regulated manner.

Impact On Different Community Types

A significant concern for many critics of the AFFH rule was its financial implications. Reports from organizations like the Cato Institute underscored how afferent taxpayers were impacted, with an estimated $55 million annual cost attributed to supporting the rule's compliance necessities.

Beyond financial considerations, supporters argue that removing these federal constraints will positively impact diverse community types—be it rural, urban, or tribal. By freeing up preexisting constraints, local stakeholders can pursue innovative methods to address housing inequities more efficiently and creatively.

HUD officials have confirmed that although the AFFH regulation has been rescinded, protections against discrimination under the Fair Housing Act remain firmly in place.

Such reassuring measures ensure that while procedural approaches may have adjusted, the overarching mission of equitable and inclusive housing has not been abandoned.

The decision to terminate the AFFH represents not only a regulatory shift but also indicates broader political developments around housing policy in the U.S. The balancing act between federal oversight and local autonomy reflects an ongoing debate on the best methods to promote equal housing opportunities across the country.

Written By:
Christina Davie

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