Regulatory Reset: Realigning Federal Regulation to Support Housing Development

Housing Leaders Call for Targeted Reforms to Cut Costs and Boost Supply

By Cindy Chetti, Senior Vice President, Government Affairs, NMHC

Cindy Vosper Chetti is Senior Vice President for Government Affairs, with responsibility for managing NMHC’s federal legislative and regulatory advocacy strategy agenda. She also oversees NMHC’s political operations and the NMHC PAC. Learn more about Cindy.

As recent research by the National Multifamily Housing Council (NMHC) and the National Apartment Association (NAA) shows, regulations can add significantly to the costs of building housing, making it increasingly difficult to create the housing America needs. In a letter to the administration, NMHC and NAA identified 32 federal programs, rules and regulations across 10 agencies for review and reform.

Many of these policies have drifted from their legislative intent, introducing costly inefficiencies, stifling innovation and worsening the ongoing housing affordability crisis. NMHC and NAA are actively engaging with the Trump Administration leadership to reset the regulatory landscape in a way that supports responsible growth and operational clarity for multifamily housing providers.

Top Regulatory Priorities for Industry Action

NMHC is currently working with the administration to review and revise the following policies:

Rescind CARES Act 30-Day Notice Requirement
Applies to: FHFA, HUD, USDA
Pandemic-era eviction notice requirements remain in effect, creating compliance complexity in post-COVID conditions.
Reinstate 2020 Disparate Impact Rule
Agency: HUD
The current version increases litigation exposure; the 2020 framework provided clearer standards for housing providers.
Revise Emotional Support Animal (ESA) Guidance
Agency: HUD
Current rules lack clarity and are frequently misused, leading to legal risk and onsite enforcement challenges.
Withdraw Floodplain and Wetlands Standards
Agency: HUD
Proposed changes threaten feasibility and cost-effectiveness for new development.
Exempt Multifamily from Build America, Buy America (BABA) Rules
Agency: HUD
Implementation could significantly delay projects and increase costs due to sourcing limitations.
Rescind AI Guidance on Tenant Screening and Housing Ads
Agency: HUD
Recent guidance creates uncertainty around compliance and use of modern screening tools.
Revise EPA Dust-Lead Standards
Agency: EPA
New thresholds are not supported by practical risk data and may trigger unnecessary remediation.
Repeal and Revise Davis-Bacon Rule
Agencies: DOL, HUD
Recent expansion significantly raises construction costs and complicates project delivery timelines.
Rescind IECC and ASHRAE Energy Standards for Multifamily
Agency: HUD
Federally imposed minimum energy codes restrict flexibility and add cost to new construction and rehab.

Recent Regulatory Rollback Wins for Multifamily

We have already seen tangible regulatory relief, thanks to NMHC/NAA advocacy efforts. Key examples include:

FHFA Servicing Reforms – Three proposed servicing changes for GSE-financed multifamily loans were shelved.
Radon Testing Flexibility – Revised GSE guidance allows for smarter testing protocols.
HUD’s Barriers Reduction Rule – Streamlined processes for HUD-assisted housing development.
Suspension of AFFH Rule – Reduced risk of compliance enforcement and unclear local obligations.
DOE Appliance Standards Rollback – Avoided costlier product mandates with limited consumer benefit.
FinCEN Beneficial Ownership Relief – Reduced duplicative reporting requirements for property owners.
WOTUS Rule Revised – Restored certainty around wetlands permitting and development timelines.
CRA Rule Modernization – Created a clearer path for multifamily projects to qualify for CRA credit.
SEC Climate Disclosure Delay – Paused rollout of complex ESG reporting mandates.

Bottom line

Regulatory reset isn’t just policy—it’s a critical opportunity to remove roadblocks, improve predictability and unlock multifamily development potential to create more desperately needed housing opportunities in a challenged housing market.

Cindy Vosper Chetti cchetti@nmhc.org