Latest Housing Updates from LeadingAge National
(Aug. 18, 2025) Affordable housing members should note the following critical updates from LeadingAge National:
Updated Action Alert for HUD Funding. It’s time to urge Congress to support strong U.S. Department of Housing and Urban Development (HUD) funding for fiscal year 2026. While Congress has indicated that they will reject the request for steep cuts, the House and Senate versions of HUD program funding proposals are very far apart. LeadingAge National has updated its action alert here to support strong HUD funding and oppose cuts to housing programs for older adults.
Federal Judge Pressures HUD on Stalled Climate Resilience Funds. After months during which funds have been frozen for some of HUD’s Green and Resilient Retrofit Program (GRRP) awards, a federal judge on Aug. 11th ordered the government to explain itself within 48 hours. U.S. District Judge Mary McElroy, a Trump appointee who had previously issued a preliminary injunction ordering HUD to continue processing all GRRP awards while the broader court case proceeds, requested an explanation for why HUD has not advanced the Comprehensive awards, as well as an explanation for why HUD seemingly misled the court for months about its compliance with the preliminary order. In response, HUD and the U.S. Department of Justice submitted statements to the court about their efforts to proceed with the awards. Although LeadingAge members with Comprehensive awards have seen no progress from HUD in nearly four months, HUD declared that they are working internally to advance the awards and need more time. The judge overseeing the case called out the government for appearing to “slow-walk” the release of the money; while she stopped short of setting a specific deadline for HUD to move forward with processing the Comprehensive awards, she requested biweekly status update reports from HUD, which LeadingAge National applauds.
HUD Sends New “Disparate Impact” Final Rule for White House Approval. On Aug. 4th, HUD submitted a final rule on “disparate impact” to the White House’s Office of Management and Budget (OMB), which will review the rule change for publication. Disparate impact refers to a method of proving discrimination based on outcomes rather than intent; it applies when a seemingly neutral policy disproportionately harms a protected group. The new rule, titled “HUD’s Implementation of the Fair Housing Act’s Disparate Impact Standard,” comes on the heels of an April executive order (EO) by President Trump rejecting the use of disparate impact policies. The text of the final rule awaiting OMB approval is not yet publicly available, but the previous Trump administration had also sought to fundamentally change the use of the disparate impact standard in the U.S. The rule sent to OMB for approval bypasses the usual proposed rule phase and will not allow for public comment; however, the Supreme Court upheld the use of disparate impact in 2015, and HUD has interpreted the Fair Housing Act as prohibiting disparate impact for over 40 years, meaning that any fundamental rule change in 2025 could face significant legal challenges. LeadingAge National fully supports disparate impact as a key measure of housing discrimination and will monitor the administration’s actions to change or remove disparate impact liability.
HUD to Remove Translated Documents in New English-Only Policy. On Aug. 18th, several news outlets reported an announcement to change HUD’s Limited English Proficiency (LEP) policy. Deputy Secretary Andrew Hughes is quoted in an internal memo as directing the agency to end contracts for translation services for HUD materials and communications, and to remove paper and online materials in languages other than English. The announcement comes after a March EO signed by President Trump declaring English the official language of the U.S. Previously, HUD had a practice of translating materials like resident brochures, documents, and forms into nearly 20 languages. LeadingAge National is deeply concerned by the change, which it believes could impact housing access for people with LEP, and will watch for legal challenges and impacts on housing providers and residents.
Federal Housing Finance Agency Expands Investment in Housing Credit Properties. On Aug. 5th, the Federal Housing Finance Agency (FHFA) announced an expansion of the amount that Fannie Mae and Freddie Mac can invest in properties financed through the Low-Income Housing Tax Credit (LIHTC). The LIHTC is the primary tool used to develop moderately affordable housing in the U.S., and the government-sponsored entities can now invest $2 billion each for a total of $4 billion annually. FHFA is requiring 50% of the investment to be reserved for “difficult-to-serve” markets, and at least 20% of that half will be in rural areas. The announcement doubles the previous cap on investment ($1 billion each) and is consistent with the passage of H.R. 1, also known as the One Big Beautiful Bill, which expanded the LIHTC state allocations.
Contact: Jeff Diamond, jdiamond@leadingageny.org