An Obama-era housing rule that was terminated by the first Trump administration and revived by the Biden administration has again been canceled. The U.S. Department of Housing and Urban Development (HUD) said the regulation has led to excessive bureaucracy and created affordability challenges.
The agency said it will terminate the Biden-era 2021 Affirmatively Furthering Fair Housing (AFFH) rule, “cutting costly red tape imposed on localities and returning decision-making power to local and state governments,” in a Feb. 26 statement.
“The Biden-era AFFH rule was, in effect, a ‘zoning tax,’ which fueled an increase in the cost and a decrease in the supply of affordable housing due to restrictions on local land,” the HUD stated.
The AFFH rule, introduced by the Obama administration in 2015, implemented reporting requirements for local and state governments as well as public housing agencies that received federal funds from the HUD.
For instance, it required local officials to provide answers to 92 questions on topics such as disparities in housing opportunities, according to a commentary by The Heritage Foundation. Local officials had to report data on issues such as environmental health hazards, which had little to do with affordable housing. Besides that, HUD fund recipients had to ensure that their policies and practices did not promote racial segregation.
“[The AFFH rule was] designed to give unelected, anonymous bureaucrats in Washington the power to pick and choose who your new next-door neighbor will be,” Sen. Mike Lee (R-Utah) wrote in a 2016 op-ed.
“If they don’t believe your neighborhood is ‘diverse’ enough, they will seize control of local zoning decisions—choosing what should be built, where, and who should pay for it—in order to make your neighborhood look more like they want it to.”
In 2020, the Trump administration abolished the AFFH rule, and then-HUD Secretary Ben Carson called the requirements “excessive federal overreach.” The rule proved to be “complicated, costly, and ineffective,” the HUD said at the time.
In 2021, the Biden administration restored the main provisions of the AFFH rule.