Overview of the New AFFH Rule
The U.S. Department of Housing and Urban Development (HUD) has issued an interim final rule revising regulations related to the Affirmatively Furthering Fair Housing (AFFH) requirement under the Fair Housing Act. The new rule modifies how grantees demonstrate compliance with the obligation to promote fair housing while removing specific fair housing planning requirements established in previous rules.
This interim final rule is pending publication in the Federal Register. Once published, it will establish both the effective date and the deadline for public comments. HUD is inviting feedback from stakeholders during a 60-day public comment period, which will begin once the rule is officially published.
Key Changes Under the Interim Final Rule
1. Simplified AFFH Rule Certification Process
Under the new rule, grantees’ certifications will be considered sufficient as long as they take actions related to promoting fair housing, such as efforts to eliminate housing discrimination. This removes the requirement for a formal Analysis of Impediments (AI) or any mandated fair housing planning mechanisms that were previously in place.
2. Removal of Certain Reporting and Assessment Requirements
The rule eliminates prior provisions that required local and state governments to analyze racial or ethnic disparities in housing needs and submit detailed fair housing assessments. According to HUD, this change provides local communities “maximum flexibility in designing and implementing sound policies responsive to unique local needs, and eliminates overly burdensome, intrusive and inconsistent reporting and monitoring requirements.”
3. Continued Fair Housing Act Compliance
While the rule changes reporting and planning requirements, HUD emphasizes that grantees must still comply with the Fair Housing Act. The law prohibits housing discrimination based on race, color, religion, sex, disability, familial status, or national origin.
Background and Regulatory History
HUD’s approach to the AFFH rule has evolved over the years:
• 1994: Grantees were required to conduct an Analysis of Impediments (AI) and take steps to address barriers to fair housing.
• 2015: The Obama administration introduced an expanded AFFH rule, requiring local governments to submit Assessments of Fair Housing (AFHs) with detailed data and policy plans.
• 2020: The Trump administration rescinded the 2015 rule and replaced it with a simplified AFFH certification process under the Preserving Community and Neighborhood Choice (PCNC) rule.
• 2021: The Biden administration partially reinstated AFFH requirements, requiring jurisdictions to certify that they were taking meaningful actions to address fair housing concerns.
• 2025: The latest interim final rule repeals the 2021 AFFH provisions and returns to a pre-1994 understanding of AFFH compliance.
Impact on Affordable Housing and Local Governments
The revised AFFH rule is expected to have different impacts depending on how state and local governments approach housing policy.
- For Local Governments: The rule reduces administrative requirements and allows local jurisdictions to develop their strategies for fair housing compliance.
- For Housing Advocates: Some concerns may arise regarding how fair housing enforcement will be monitored without formal reporting requirements.
- For Affordable Housing Development, the rule change may increase the flexibility of zoning and housing policy decisions at the local level.
Next Steps
- Pending Federal Register Publication – The rule is not yet in effect and will become official once published in the Federal Register.
- Public Comment Period – Once published, the 60-day public comment period will begin, allowing stakeholders to provide input.
- Final Rule Implementation – After the comment period, HUD may revise or finalize the rule based on feedback received.
As the public comment process unfolds, additional clarifications or modifications to the rule may emerge.
