NMHC, NAA Propose Federal Housing Rule Changes

The National Multifamily Housing Council (NMHC) and the National Apartment Association (NAA) launched an ambitious initiative to reshape federal regulations for apartments. 

In a comprehensive letter to the Trump administration, the organizations outlined proposals for revising 32 federal programs, rules, and regulations across 10 different federal agencies.

The aim is to reduce regulatory burdens on multifamily owners and streamline the housing market, as reported by GlobeSt.

Broad, Sweeping Changes

The proposal covers a wide range of issues, from energy efficiency standards to cybersecurity regulations, and even fair housing rules.

The groups have called for a review of appliance efficiency standards and building energy codes at the Department of Energy (DOE). They are concerned that current regulations are raising costs and limiting consumer choice, burdening both property owners and tenants.

The Department of Homeland Security (DHS) is also in the crosshairs, with a request to revise proposed cybersecurity incident reporting requirements. NMHC argues additional reporting obligations would unnecessarily burden multifamily owners, especially smaller operators.

Section 8, Eviction Notices

The Department of Housing and Urban Development (HUD) is a key target in the proposal, with the largest number of requested changes—15 in total.

These include efforts to clarify eviction notice requirements, reform the Section 8 Housing Choice Voucher Program, and withdraw regulations related to floodplain management, criminal screening, and AI use in tenant screening processes.

Additionally, NMHC and NAA seek to replace the current Affirmatively Furthering Fair Housing Rule with a policy that was implemented during the first Trump administration.

Another request is to revise inspection protocols related to physical property standards to make them more reasonable and efficient for property owners while still ensuring tenant safety and comfort.

Workplace, Environmental

The proposal also extends to workplace-related regulations, with requests to the Department of Labor (DOL), National Labor Relations Board (NLRB), and Occupational Safety and Health Administration (OSHA).

NMHC and NAA have asked for the repeal of expanded overtime pay eligibility rules and changes to joint employer status guidelines. Both organizations are also urging the withdrawal of proposed heat safety standards.

The proposal also addresses environmental issues, particularly those concerning the Environmental Protection Agency (EPA). The groups have called for delaying refrigerant transition rules and revising lead hazard standards, which could add complexity and cost to property management.

Other Agency Requests

Several other federal agencies are also included in the sweeping proposal:

• The Federal Housing Finance Agency (FHFA) is asked to clarify eviction notice requirements and withdraw directives on rent control and Section 8 participation.
• The Federal Communications Commission (FCC) is targeted for changes to the Affordable Connectivity Program and the scope of the Digital Discrimination Order.
• The Federal Trade Commission (FTC) is requested to revise its rental industry guidelines.
• The Securities and Exchange Commission (SEC) is called upon to amend its climate disclosure rules to lessen the reporting burden on property owners and managers.

Potential Opposition

The proposed reforms are designed to alleviate regulatory burdens, reduce costs, and increase operational flexibility for multifamily property owners.

However, the proposal will likely face scrutiny and opposition from tenant rights organizations, environmental advocates, and others who may view these changes as potentially harmful to renters and sustainability efforts.

Tenant rights groups, in particular, may argue that some of the proposed changes—such as reforming eviction procedures or modifications to tenant screening protocols—could undermine renters’ protections.

Similarly, environmental organizations may oppose delays in implementing refrigerant transition rules or relaxing lead hazard standards, fearing these changes could slow progress toward sustainability goals.

Despite potential opposition, NMHC and NAA are pushing forward with their proposal, seeing it as a necessary step toward ensuring the health and growth of the multifamily housing sector.