Regulatory Reform in the Trump Administration   

On President Trump’s first day in office, he released a Presidential Action on Delivering Emergency Price Relief for American Families and Defeating the Cost of Living Crisis ordering “all executive departments and agencies to deliver emergency price relief, consistent with applicable law, to the American people and increase the prosperity of the American worker.  This shall include pursuing appropriate actions to lower the cost of housing and expand housing supply.” 

A recent study from the National Association of Home Builders and National Multifamily Housing Council estimate that regulations make up 40.6 percent of the cost of multifamily development. Addressing these regulations could make a meaningful difference in developers’ ability to address the nationwide supply shortage. National Housing & Rehabilitation Association’s Regulatory Reform agenda seeks to exempt affordable housing programs from cost-adding regulations, with the goal of preserving and creating as much affordable housing as possible with the limited resources at our disposal.  

Please share NH&RA’s agenda with your Congressional offices and in meetings with administration staff. Contact NH&RA through this online form to join the Regulatory Reform Working Group.  

Department of Housing and Urban Development 

• 30-Day Notification Requirement. Withdraw the 30-Day Notification Requirement Prior To Termination of Lease for Nonpayment of Rent rule for public housing authorities and recipients of project-based rental assistance. This rule simply adds 30-days to an already long and cumbersome eviction process driven by state and local law;  
• Income Limit Calculations. Withdraw the Changes to the Methodology Used for Calculating Section 8 Income Limits Under the United States Housing Act of 1937 notice, which artificially caps income limit increases to the higher of five percent or twice the change in national median family income, with an absolute cap of ten percent; 
• Streamlining Inspections. Housing providers are subject to many state and federal inspection regimes. These redundant inspections waste the time and resources of all involved. State and federal inspection requirements should be aligned so housing providers can get credit for qualifying federal inspections; and 
• Build America, Buy America. Exempt affordable housing projects from Build America, Buy America Act domestic content preferences, which increase costs in an already expensive materials market.  

Department of Labor 

• Split Wage Decisions for Davis-Bacon Wages. Residential projects should only be subject to residential wage rates under the Davis-Bacon Act (DBA). DBA requirements limit the labor pool in an already tight market and artificially increase the cost of construction. Subjecting residential projects to both residential and substantial wage rates further exacerbates the problem and adds significant administrative burden and complexity. 

Cross-Governmental 

• Environmental Review. The National Environmental Policy Act (NEPA) is limited to “major federal action.” Under the revised definition contained in the Fiscal Responsibility Act of 2023, Department of Housing and Urban Development programs do not meet the definition because HUD does not control the location or nature of the projects; and 
• GSE Reform. Privatization of Fannie Mae and Freddie Mac should ensure that the Government-Sponsored Entities (GSEs) continue to:  
• Maintain nationwide liquidity for multifamily-backed mortgages; 
• Maintain Duty to Serve Goals, especially for rural and affordable housing; 
• Invest in Low Income Housing Tax Credits; and 
• Serve the market with minimal disruptions in the transition to a new status.