Trump Administration Overhauls Federal Housing Policy to Promote Affordability

The Trump administration has made significant changes to a controversial policy from the Obama era, aiming to address the nation’s housing affordability crisis. The Department of Housing and Urban Development (HUD) and the Department of Justice have withdrawn an Obama-era mandate. This policy allowed third parties to file accessibility-related complaints concerning original building design flaws, holding current property owners accountable indefinitely.

According to HUD, the previous policy forced property owners to invest over $112 million in accessibility upgrades over five years to qualify for Federal Housing Administration (FHA) refinancing. These costs hindered the supply of affordable housing. The rule change means current owners are no longer liable for architectural deviations made by the original builders after a building’s completion. The time limit for filing Fair Housing Act design and construction challenges now starts on the day a building receives its certificate of occupancy.

Individuals or advocacy groups must file administrative complaints with HUD within one year. For private civil lawsuits in federal court, claims are limited to two years from construction completion. Once these periods close, property owners are protected from retroactive liability, although tenants can seek reasonable modifications at any time under existing Fair Housing Act protections.

HUD Secretary Scott Turner emphasized that unnecessary government policies have contributed to rising housing costs. He stated that today’s action rescinds unnecessary liability created by legal theories outside legal foundation. Turner reiterated the Trump Administration’s commitment to following laws passed by Congress and court interpretations, ensuring Americans have access to affordable housing.

The policy rollback is rooted in the principle that federal agencies cannot alter or ignore laws set by Congress and court rulings. When Congress updated the Fair Housing Act in 1988, they set a strict one-year deadline for filing administrative complaints. HUD officials argue that the 2013 policy disregarded this mandate by targeting property owners long after project completion.

The shift aligns federal enforcement with a U.S. Court of Appeals for the Ninth Circuit ruling. The court decided that the illegal act of failing to design properly ends once construction and an official occupancy certificate are complete. HUD Assistant Secretary for Fair Housing and Equal Opportunity Craig Trainor criticized the Obama-era policy, asserting that it rewrote the Fair Housing Act and exposed builders to indefinite legal liability.