Weekly update from the National Housing Conference | | News from Washington | By Brittany Webb | | |
CDFIs to undergo Treasury review
The U.S. Department of the Treasury announced it will conduct a review of all Community Development Financial Institutions (CDFIs), citing concerns about partisan agendas and perceived misuse of funds. The review is the latest in the Trump Administration’s continued attacks on the CDFI program that it has deemed as “woke” and risky, despite widespread and bipartisan support. Treasury stated that it will be “assessing whether CDFIs are complying with applicable legal requirements and the terms of CDFI Fund assistance agreements.” Advocates for the CDFI Fund have recently seen movement of CDFI dollars after sustained delays.
“CDFIs play a critical role in expanding access to capital in underserved communities,” stated Treasury Secretary Scott Bessent. “CDFIs that engage in predatory practices and take advantage of the very communities they are intended to serve will be reviewed and, where appropriate, held accountable. We remain committed to enforcing the law and protecting taxpayer resources while supporting the mission of responsible CDFIs.”
Lawmakers continue to show support for the CDFI program through funding appropriations and calls for provisions that support transparency of staffing levels at the CDFI Fund.
“CDFI credit unions have deployed hundreds of billions of dollars to support mortgage lending, consumer financing, and small business capital within their local communities, spurring economic growth across the country,” said America’s Credit Unions President/CEO Scott Simpson and Inclusiv President/CEO Cathie Mahon in a joint statement. “We recognize the need for transparency and efficient oversight to protect taxpayers and support responsible lending standards for CDFIs. Indeed, highly regulated, not-for-profit credit unions are leaders in serving low-income people and communities safely and affordably. We urge officials to focus on solutions that target unregulated bad actors without compromising trusted stewards.”
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Sponsorship Opportunities Available
Aligning your organization with the Gala and its honorees enhances your visibility, engagement, and networking opportunities. Supporting one another and working collaboratively across sectors, we strengthen our collective ability to address the nation’s most pressing affordable housing challenges.
Please consider supporting this year’s honorees and NHC by purchasing a ticket and/or becoming a Gala sponsor. Sponsorship opportunities begin at $3,500. You can also show your support by placing an ad in the Gala Tribute Book. New for 2026, we’re offering the opportunity to display a digital ad onsite at the Anthem.
It’s a meaningful way to celebrate the accomplishments of this year’s honorees or highlight your commitment to our shared mission. Tribute Book ads start at $750 and digital ads start at $325. You can also choose to have your name listed in the Gala Tribute Book for $250. Click here to learn more about these opportunities.
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Powell probe dropped, FOMC maintains current rate
The Justice Department announced via social media that it has dropped its investigation into Federal Reserve Chair Jerome Powell, a decision that helped clear the way for the Senate Banking Committee to advance President Donald Trump’s nominee to lead the central bank, Kevin Warsh.
The investigation, opened in late 2025, had examined whether Powell made misleading statements related to renovations at the Federal Reserve’s D.C. headquarters. In closing the case, federal prosecutors cited insufficient evidence to pursue charges. U.S. Attorney for the District of Columbia Jeanine Pirro said in a statement that she had “directed my office to close our investigation,” though she “will not hesitate to restart a criminal investigation should the facts warrant doing so.”
The end of the investigation removed a key point of contention in the Senate, where some lawmakers had been reluctant to move forward with a leadership transition at the Fed while the inquiry remained unresolved. Shortly after the announcement, the Senate Banking Committee voted to advance Warsh’s nomination to the full Senate. The nomination cleared the committee on a 13–11 vote, along party lines.
At its April meeting, the last of Powell’s tenure as Chair since he took the helm in 2018, the Federal Open Markets Committee (FOMC) voted to maintain the current target federal funds rate at 3.5–3.75%. The release cited modest job growth, slightly elevated inflation partly driven by higher global energy prices, and little movement in the unemployment rate as factors behind the decision. Governor Stephen Miran voted against the decision, preferring to lower rates by a quarter point.
In his final speech as Fed Chair, Jerome Powell said, “After my term as Chair ends on May 15, I will continue to serve as a governor for a period of time, to be determined. I plan to keep a low profile as a governor.”
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HUD moves to roll back Equal Access rule and shift compliance standards
The U.S. Department of Housing and Urban Development (HUD) published multiple updates aimed at reshaping compliance for funded programs. First, the Department issued a proposed rule to revise HUD’s Equal Access Rule, which ensures that individuals can receive equal access to housing that aligns with their self-expressed gender identity. The proposal would remove all references to “gender identity” and instead define access to single-sex facilities, such as emergency shelters, based on government-documented biological “sex”, citing perceived threats to women in shelters and violations of liberty for faith-based providers. Such violations were explained further in a separate report released by the Task Force to Eradicate Anti-Christian Bias that examines claims of religious discrimination in federal policies.
The Equal Access proposal would further authorize providers to request documentation to verify a person’s sex when deemed necessary for safety or privacy. It also threatens penalties for any noncomplying entities. The changes represent significant rollbacks of protections and new challenges for transgender individuals, often overrepresented among homeless populations, who seek HUD-funded assistance. Notably, the proposal creates additional documentation requirements and practices for all individuals seeking assistance should a provider choose to doubt a person’s reported gender. Comments must be submitted by June 29.
In a separate action, HUD issued a “Dear Colleague” letter clarifying that real estate agents may share information about neighborhood crime rates and school quality without violating the Fair Housing Act, provided it is done consistently and without discriminatory intent. The guidance reverses a more cautious approach taken in recent years, when some real estate platforms and industry groups limited such disclosures over concerns they could contribute to unlawful “steering” practices. The National Association of REALTORS® responded to the letter, emphasizing that its ethics and standards of practice remain consistent, and that objective information on crime rates and schools has always been permissible to provide to buyers so long it does not include subjective commentary or detailed racial, ethnic, or religious data.
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HUD, USDA withdraw energy efficiency rule for new homes
HUD and USDA have formally rescinded a 2024 rule that would have required new homes financed through the Federal Housing Administration (FHA) and U.S. Department of Agriculture (USDA) loans to meet the 2021 International Energy Conservation Code (IECC), reversing a Biden-era determination that had sparked significant debate across the housing industry.
The rule, finalized in 2024, made new homes ineligible for FHA or USDA-backed mortgages unless they complied with the updated energy code, one of the most stringent national standards and adopted in only a limited number of states. According to the National Association of Home Builders (NAHB), research showed that adopting these standards would have added between $9,600 and $21,400 to the price of a new home depending on the climate zone. While the rollback eliminates the requirement to meet the 2021 IECC, homes financed through FHA and USDA programs will still need to comply with existing energy efficiency standards that predate the 2024 determination.
HUD Secretary Scott Turner framed the rescission as a move to remove barriers to homeownership and boost housing supply. “By rescinding this mandate, we are removing a significant regulatory barrier that added tens of thousands of dollars to the cost of a new home,” Turner said.
USDA Secretary Brooke Rollins echoed that message, emphasizing the impact on rural communities. “Affordable rural housing is a top priority for the Trump Administration, and we are focused on removing all the unnecessary restrictions that artificially drive up new home prices,” she stated.
“NAHB commends HUD and USDA for taking decisive action to roll back these overly burdensome energy mandates, which threatened to deepen the nation’s housing affordability crisis. Compliance with the rule would have placed significant new cost pressures on home builders and multifamily developers, making it harder to deliver the affordable, attainable communities that are urgently needed,” said Bill Owens, chairman of NAHB.
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HOME tenant protections, green building updates delayed indefinitely
HUD has issued a new proposed rule revisiting its recent overhaul of the HOME Investment Partnerships program (HOME), while indefinitely delaying portions of the previously finalized rule that had been under review. The final HOME rule, initially published in January 2025, has been under review by the Trump Administration for over a year. Modernized standards for both tenant protections and green building were delayed before ever taking effect, and are now delayed indefinitely while HUD collects comments on its new proposal.
The specific protections would have required new tenancy addenda establishing tenants’ right to organize, setting reasonable limits on security deposits, protecting tenants from retaliation, and requiring landlords to maintain the physical conditions of units and relocate tenants when units are uninhabitable. Some protections will be retained with greater nuance, including a new exemption for housing providers to terminate a lease more quickly, in accordance with existing laws if the renter poses a direct threat to the safety of people or property.
Comments on the latest version of these HOME provisions are due by June 1.
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Bank regulators ease capital rule for community banks
Federal banking regulators have finalized changes to the Community Bank Leverage Ratio (CBLR), lowering the required capital threshold and extending compliance flexibility for smaller institutions. The rule, jointly issued by the Federal Deposit Insurance Corporation, Federal Reserve, and Office of the Comptroller of the Currency, reduces the leverage ratio requirement from 9% to 8%, a move intended to encourage more community banks to opt into the simplified capital framework.
Under the updated rule, eligible banks that maintain a leverage ratio above 8% can continue using the CBLR framework, avoiding more complex risk-based capital requirements. Officials emphasized that the framework remains optional and limited to smaller institutions with assets below $10 billion. The agencies highlighted that the simplified approach is designed to reduce compliance burden while maintaining core safety and soundness safeguards.
Banking industry groups, including community bank advocates, welcomed the long-advocated-for adjustment, noting it could improve capital flexibility and support lending in local markets. The lower threshold is expected to give community banks more room to manage capital without restricting credit availability.
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NHC seeks experienced policy director
The National Housing Conference, the nation’s oldest and broadest housing coalition, seeks an experienced Policy Director to represent our diverse coalition on Capitol Hill, within the Administration, and among key stakeholder groups. This role will help shape and advance NHC’s federal policy and advocacy initiatives, working closely with Congress, federal agencies, and national partners to drive practical, bipartisan housing solutions. Reporting to the president and CEO, the Policy Director plays a central role in convening members, leading key working groups and events, and collaborating across research, communications, and coalition-building efforts. NHC offers a dynamic, team-oriented environment and the opportunity to play a leading role in shaping national housing policy at a pivotal time for the industry.
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Fair Housing map reveals state discrepancies
The National Fair Housing Alliance and the Urban Institute jointly launched a Fair Housing Data Mapping tool designed to help communities and policymakers visualize where housing discrimination, patterns of segregation, and resource inequity overlap. This interactive tool includes indications, such as transportation, environment, education, jobs, labor market, and housing affordability. The figure below demonstrates the national view of housing problems by state, with darker purple indicating higher rates of housing burden ranging from roughly 25% to over 40%. Coastal and Sun Belt states, particularly in California, New York, and Florida, show the deepest concentrations of housing problems, while much of the rural interior sits at lower rates, though still above what would be considered manageable. The tool is designed to specifically help communities in identifying gaps and support advocacy efforts in a moment when federal fair housing infrastructure is being actively dismantled.
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Gallup published a poll finding that homebuying intentions among non-owners have hit a record low, with just 25% of non-homeowners expecting to purchase a home within five years. 67% of Americans now say it is a bad time to buy a house, marking the fifth consecutive year that a majority have viewed the market unfavorably, while 65% expect home prices in their area to rise further over the next year. Young adults are bearing the sharpest end of this shift with the share of non-homeowners aged 18 to 34 expecting to buy within five years having fallen from 57% to just 29% over the past decade, with many pushing their timelines out rather than abandoning homeownership altogether.
MS Now published an opinion column from Stacey Abrams on the Supreme Court 6-3 decision severely weakening the Voting Rights Act that limits the legal tools available to challenge district maps that reduce minority voting power. Abrams states “The VRA ended Jim Crow. Full stop. With this decision, it’s open season — once again — on Black and brown voters at the ballot box.” Voting maps shape who controls local and state government, which in turn influences fair housing enforcement, tenant protections, and the distribution of infrastructure and development dollars. The decision adds to an accelerating rollback of civil rights protections that further erodes the legal infrastructure that has long stood between communities of color and discriminatory practices.
The Harvard Joint Center for Housing Studies published a blog post finding that government benefits and tax credits meaningfully reduce housing cost burdens for low-income renters, but not enough to offset the underlying crisis. The research shows that during the pandemic, expanded safety net programs like enhanced Child Tax Credits and SNAP caused the adjusted cost burden rate for the lowest-income renters to drop by about 5 percentage points, even as a standard measure showed burdens rising. When those programs expired in 2022, cost burden rates shot back up. The research underscores that without sustained policy support, relief is temporary, and the structural affordability gap remains.
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