On January 16, 2025, the U.S. Department of Housing and Urban Development (HUD) officially withdrew its proposed rule, “Reducing Barriers to HUD-Assisted Housing,” introduced on April 10, 2024. The rule aimed to revise HUD regulations related to criminal justice involvement and housing program eligibility. This withdrawal marks a change in HUD’s regulatory agenda, as the department confirmed it will not proceed with this rule.

Overview of the Proposed Rule

The proposed rule was designed to address several areas in HUD-assisted housing regulations, including:

1. Admissions Policies: Updating requirements for applicants with criminal records or histories of involvement with the criminal justice system.
2. Eviction Criteria: Reevaluating policies for terminating housing assistance, especially those related to illegal drug use, drug-related criminal activity, or other criminal offenses.
3. Barriers to Access: Reducing systemic barriers that prevent individuals with specific backgrounds from accessing HUD housing programs.

The rule sought to clarify how criminal history and related factors would impact housing eligibility under HUD programs, such as Public and Indian Housing, the Housing Choice Voucher program, and others.

Withdrawal Details

Announcement

HUD announced its decision to withdraw the reducing barriers proposed rule through a notice in the Federal Register, effective January 16, 2025. This decision also removes the rule from HUD’s Spring 2025 Unified Agenda of Regulatory and Deregulatory Actions.

Statement from HUD

HUD noted that it does not intend to finalize the rule as previously outlined. However, the department indicated that it may revisit the topic through a new rulemaking process, adhering to the Administrative Procedure Act and other relevant regulatory requirements.

Current Status of Regulations

With the withdrawal of this rule, current HUD regulations concerning criminal history, drug-related activity, and housing program eligibility remain in effect. These regulations guide how Public Housing Authorities (PHAs) and property owners assess applicants and enforce housing policies.

Existing Guidance

HUD has provided prior guidance and notices to ensure housing providers apply rules consistently and fairly. This includes balancing the safety and security of HUD-assisted properties with the need for equitable access to housing.

What’s Next?

While HUD has withdrawn the reducing barriers proposed rule, the department can propose new regulations on similar topics. HUD emphasized its commitment to following appropriate regulatory processes and addressing housing access challenges through potential future initiatives.

For stakeholders, it will be essential for you to monitor HUD’s regulatory agenda for any updates or new proposals related to housing eligibility and criminal justice policies.