Tackling Housing Affordability
The Trump administration has removed an Obama-era policy aimed at addressing the nation’s housing affordability crisis. The policy had been criticized for increasing property costs and hindering the supply of affordable housing. The Department of Housing and Urban Development (HUD), together with the Department of Justice, revoked this policy. It allowed third parties to file accessibility complaints indefinitely, even affecting building owners who were not involved in the original construction.
Financial Impact and New Guidelines
Internal agency data indicates that the previous policy forced property owners to invest over $112 million in accessibility updates in the past five years to qualify for Federal Housing Administration (FHA) refinancing. HUD argues these costs limited the availability of affordable housing. The new rule prevents holding current property owners liable for design errors committed by original builders years ago. Complaints related to Fair Housing Act design must now be filed within a year of the building’s occupancy certification.
Individuals and advocacy groups have a one-year window to file administrative complaints directly with HUD. Civil lawsuits have a two-year limit from construction completion. Once closed, property owners are shielded from liability for original design errors, although tenants can request modifications under Fair Housing Act protections.
Criticism of Obama-Era Regulation
The Obama-era regulation expanded the Fair Housing Act’s scope by holding builders perpetually liable for deviations from accessibility guidelines. The new guidance states this interpretation was incorrect, exceeding authority and burdening homebuilders. Financial data from HUD stresses the impact, with a single inspection firm identifying $49 million in accessibility fixes across nearly 500 deals since 2019. The regulation also discouraged FHA financing, losing over $1 billion in loan volume due to uncertainties.
Aligning Policies with Legal Principles
HUD Secretary Scott Turner stated the Trump administration adheres to laws as written, aiming to repeal guidance that complicates affordable housing access. HUD’s rollback reflects legal principles barring agencies from altering laws passed by Congress or disregarding court rulings. The shift aligns with appellate court rulings, including a judgment by the U.S. Court of Appeals for the Ninth Circuit. Judges ruled that design flaws end when construction concludes and occupancy certification is issued.
Assistant Secretary for Fair Housing and Equal Opportunity Craig Trainor emphasized the importance of the statute of limitations in the Fair Housing Act. He criticized the Obama-era guidance for altering the law and affecting builders’ legal liabilities.
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