Update (9/8/2025): In an updated list of proposed regulatory actions published in early September, the U.S. Department of Housing and Urban Development (HUD) confirmed NAA's assessment of pending rulemaking below.
The Big Picture
As part of the federal rulemaking process, the U.S. Department of Housing and Urban Development (HUD) has submitted six rules to the Executive Office of the President (EOP) for approval. These changes would dramatically shift federal housing policy and likely advance two industry priorities: 1) Eliminate federal enforcement of the CARES Act 30-day notice requirement and 2) make meaningful improvements to the agency’s disparate impact rule.
Pending Agency Action
In August, HUD proposed Revocation of the 30-Day Notification Requirement Prior to Termination of Lease for Nonpayment of Rent (FR-6529) as an Interim Final Rule and to reissue its Final Rule HUD's Implementation of the Fair Housing Act's Disparate Impact Standard (FR-6540). At this stage of the federal rulemaking process, few details are publicly available, however the National Apartment Association (NAA) can look to previous Trump Administration actions to understand the direction of these regulatory activities.
The industry is likely to see elimination of the agency’s 30-Day Notification Requirement Prior To Termination of Lease for Nonpayment of Rent rule, which went into effect earlier this year. Under this Biden-era rule, HUD mandated a 30-day notice before filing for eviction due to nonpayment of rent at rental properties benefitting from Project Based Rental Assistance (PBRA) and in public housing. This rule made the flawed CARES Act notice procedure permanent for some HUD-assisted housing. While this change targets a subset of CARES Act-covered properties, it represents a massive step in the right direction to reduce federal interference into states’ authority.
HUD also has proposed reissuing its Disparate Impact Rule to better align with President Trump’s Executive Order Restoring Equality of Opportunity and Meritocracy, which seeks to eliminate disparate impact liability as the industry knows it. HUD could reinstate some version of its 2019 Disparate Impact Rule, which was first issued during the first Trump Administration and includes important safeguards on disparate impact litigation.
HUD has four other proposed rules in the presidential review stage, including actions that likely impose work requirements and time limits on federal housing assistance, require immigration status verification by public housing agencies, eliminate gender identity protections in federal housing programs and update regulatory requirements for the HOME Investment Partnerships Program.
Advocacy Outlook
After a federal agency develops a proposed rule, it must first be reviewed by a subdivision of the EOP before the agency can publish it in the Federal Register and allow for public review and comment. NAA will continue its advocacy with the Administration to ensure the rental housing industry’s voice is heard as Trump officials contemplate changes to federal policy. Of NAA’s 32 regulatory priorities, nearly 15 have been accomplished and several more are being advanced through the regulatory process. NAA members and affiliates should be on the lookout for opportunities from NAA to take action and ensure our perspective is represented in the rulemaking process.