In a quiet move that could have loud consequences, the Trump administration recently repealed a critical piece of the Biden-era housing equity agenda the Affirmatively Furthering Fair Housing (AFFH) rule. While it didn’t grab major headlines, its impact will ripple through our neighborhoods, loan approvals, and long-term efforts to close the racial homeownership gap. For Black families striving to buy homes or hold onto them it may carry deeper consequences than many realize.
The AFFH rule, rooted in the original 1968 Fair Housing Act, was designed to ensure that cities and counties receiving federal housing dollars took active steps to address housing discrimination, segregation, and systemic barriers to fair access. Under President Biden, the rule had been reinstated and strengthened after years of being dormant. Local governments were required to assess equity in their housing programs, collect and report data, and develop measurable plans to create more inclusive communities.
That changed in February 2025. The current administration scrapped the rule, arguing that it amounted to a “zoning tax” on local communities. In its place, cities and counties now only need to sign a basic pledge stating they will support fair housing no detailed analysis, no action plans, and no enforcement if they fail.
Why does this matter?
Because it removes one of the few tools the federal government had to hold localities accountable for deeply rooted housing disparities. Without it, cities that want to keep affordable housing out of wealthier neighborhoods now have more freedom to do so. Discriminatory lending, zoning, and appraisal practices already difficult to challenge will become even harder to confront without federal oversight.
Take for example a young Black couple in Atlanta both professionals, earning good salaries, ready to buy their first home. They found a property in a suburb with great schools, low crime, and strong property values. But each time they applied for financing, their loan was denied. An identical home with similar financing terms was later approved for a white couple with lower income and less savings. The bank blamed “internal scoring models,” but no one could provide a straight answer. Without the AFFH rule in place, the municipality is no longer required to track these outcomes or do anything about them. And HUD, lacking enforcement authority, has fewer ways to intervene.
This isn’t just about individual families. It’s about the larger picture. Black homeownership in the United States still hovers around 44%, while white homeownership stands near 75%. That gap has barely moved in decades. Meanwhile, Black borrowers are still nearly twice as likely to be denied a mortgage even with strong credit and income. These patterns are systemic, not accidental. And rules like AFFH were created to push against that system.
So, what can we do now?
Even when federal protections are weakened, we still have power at the local and community level. This is the moment to ask hard questions of your local officials. Are they continuing equity analysis voluntarily? Are they investing in affordable housing across all neighborhoods? Who’s making the zoning decisions in your city, and what do they stand for?
Support local housing justice organizations that are stepping up to fill the gap. Advocate for inclusive zoning, fair appraisals, and targeted down payment assistance. Hold your city accountable not just through protest, but through planning boards, town halls, and local elections.
Most importantly, prepare. Check your credit. Build your savings. Know your rights. And work with brokers, lenders, agents, and advocates who believe in your vision of homeownership and are willing to fight with you to make it happen.
The federal government may have taken a step back, but our resolve doesn’t have to.
Dr. Anthony O. Kellum – CEO of Kellum Mortgage, LLC
Homeownership Advocate, Speaker, Author
NMLS # 1267030 NMLS #1567030
O: 313-263-6388 W: www.KelluMortgage.com.
Property is Power! is a movement to promote home and community ownership. Studies indicate
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