HUD Suspends Rule to Affirmatively Further Fair Housing & Withdraws Fair Housing Tool

On May 23, the U.S. Department of Housing and Urban Development (HUD) indefinitely suspended implementation of the 2015 Affirmatively Further Fair Housing (AFFH) rule and withdrew the Assessment of Fair Housing tool that local governments use to collect fair housing data. This latest rule change builds on a January notice that delayed the submission deadline for an estimated 856 localities, and drew a lawsuit from fair housing advocates.

The 2015 AFFH rule required more than 1,200 communities receiving federal housing dollars to draft plans to desegregate their communities — or risk losing federal funds. The rationale behind the rule was to give communities an effective planning approach to "aid them in making meaningful actions to overcome historic patterns of segregation, promote fair housing choice, and foster inclusive communities that are free from discrimination." To assist communities in this effort, the Assessment of Fair Housing tool was developed over several years and included two public review and comment opportunities. This week’s rule change was filed without public comment.

In a notice in the Federal Register, HUD asserted that there are “significant deficiencies in the [AFH assessment] Tool impending completion of meaningful assessments by program participants.” In sum, HUD found the tool “inadequate to accomplish its purpose of guiding program participants to produce meaningful AFHs.” Prior to the January delay, 49 localities had submitted an AFH and 32 were approved.

Last week, New York became the first state in the nation to join the lawsuit filed by housing advocates.  According to a press release, the State's motion to join the case “will establish that the Fair Housing Act requires HUD to administer its programs in a manner that affirmatively furthers fair housing and, by suspending the AFFH Rule's requirements, that HUD has abdicated this statutory requirement for years to come.” Specifically, “the suspension of the AFFH Rule is unlawful because HUD failed to follow federal law requiring notice and public comment and failed to provide sufficient justification for the suspension of the AFFH Rule's requirements.” 

At this time, it is unclear how HUD’s decision to withdraw the assessment tool will impact the lawsuit.

Read the full complaint here.