HUD’s Future Under Scott Turner: Deregulation, Opportunity Zones, and Affordable Housing

President-elect Donald Trump’s nomination of Scott Turner as Secretary of Housing and Urban Development signals a major shift in housing policy as the nation grapples with soaring housing costs and persistent affordability challenges.

Personal Profile

Turner, a former Texas lawmaker and advocate for opportunity zones, is poised to bring a mix of deregulation, community revitalization, and potential housing incentives to HUD, per Bisnow.

If confirmed, Turner’s leadership could mark a new era for affordable housing, blending Trump-era priorities with outstanding Biden administration reforms.

Balancing Biden-Era Policies

Turner is inheriting housing policy reforms introduced by the Biden administration that aim to loosen HUD’s lending standards for the first time since 2010. These reforms include a modest increase in loan-to-value ratios for affordable developments, potentially unlocking millions in equity for developers.

If the reforms aren’t finalized before Trump’s inauguration, Turner can implement or modify them alongside deregulation initiatives that align with Trump’s housing policy.

Opportunity Zones 2.0

Turner’s leadership at the White House Opportunity and Revitalization Council under former HUD Secretary Ben Carson resulted in $50B in private investment for economically distressed areas. Trump’s administration may seek to expand this program or introduce a reimagined version with a broader reach.

Industry experts are optimistic about a potential revival. “We might see a tweaked version designed to address housing shortages more directly,” said Megan Booth of the Mortgage Bankers Association.

A Double-Edged Sword

Turner’s nomination signals a potential rollback of Biden-era environmental regulations and other stringent building standards that developers say add millions to housing costs. Deregulation could significantly boost housing production but raises concerns about fair housing protections.

“The nation’s home builders stand ready to work with HUD to roll back costly regulations,” said Carl Harris of the National Association of Home Builders. Meanwhile, advocacy groups like the National Fair Housing Alliance caution against weakening protections, citing record housing discrimination complaints this year.

What’s Next?

In a statement, Turner emphasized his dedication to creating environments where communities thrive. Drawing on his private sector experience and leadership in opportunity zones, he is expected to prioritize affordable housing, community revitalization, and incentivizing first-time homeownership.

Turner’s Senate confirmation will likely focus on his plans to address the housing affordability crisis while balancing fair housing concerns. Developers and policymakers are watching closely, anticipating a blend of deregulation, opportunity zone expansion, and new housing incentives under his leadership.

If confirmed, Turner will face the dual challenge of navigating a worsening affordability crisis while advancing Trump’s vision for HUD.