The Big Picture
On August 10, 2026, the U.S. Department of Housing and Urban Development (HUD) published a Supplemental Notice of Proposed Rulemaking (SNPRM) seeking the public’s feedback on its proposal to remove disparate impact provisions from regulations governing recipients of HUD federal financial assistance. As part of this announcement, HUD also reopened the comment period on its proposal to rescind the agency’s disparate impact regulations under the federal Fair Housing Act (FHA), with comments due by October 9, 2026.
Background
HUD’s proposal is part of the Administration’s broader effort to review regulations that allow liability based on statistical disparities rather than evidence of discriminatory intent. HUD cites Executive Order 14192, Unleashing Prosperity Through Deregulation, and Executive Order 14219, Ensuring Lawful Governance and Implementing the President’s “Department of Government Efficiency” Deregulatory Initiative, as part of the basis for the action.
The supplemental proposal builds on similar efforts by the U.S. Department of Justice and HUD’s January 2026 rulemaking, which sought to eliminate the agency’s existing disparate impact regulations and leave questions of disparate impact liability under the Fair Housing Act to the courts. It also follows other recent HUD actions affecting fair housing compliance, including the withdrawal of several fair housing-related guidance documents as part of the agency’s broader review of existing regulations and guidance.
NAA’s Advocacy
The National Apartment Association (NAA) appreciates HUD’s careful reconsideration of its disparate impact regulations and has consistently emphasized the rental housing industry’s commitment to equal opportunity in housing.
Earlier this year, NAA and the National Multifamily Housing Council submitted comments on HUD’s proposed changes. The organizations expressed support for HUD’s efforts to reduce unnecessary compliance burdens, while encouraging the agency to take additional steps to reduce litigation risk, provide greater clarity and recognize legitimate interests in the rental housing industry.
NAA will submit comments on the proposed rule and continue engaging with the Administration, policymakers and coalition partners to advocate for a fair housing framework that provides greater clarity, consistency and regulatory certainty for housing providers. Housing providers should consult their local fair housing counsel with any compliance questions.
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