Mar 09 2025 3 mins
Scott Turner, the newly confirmed 19th Secretary of the U.S. Department of Housing and Urban Development (HUD), has been making significant waves in the housing and urban development landscape over the last few days. Confirmed by the United States Senate on February 5, 2025, with a bipartisan vote of 55-44, Turner has swiftly begun implementing his vision for the department.
One of the most notable actions taken by Secretary Turner is the termination of the Affirmatively Furthering Fair Housing (AFFH) rule, a move announced on February 28, 2025. This rule, introduced during the Biden administration, required localities to complete extensive paperwork and comply with stringent federal demands to ensure fair housing practices. Turner argued that this rule imposed costly red tape on localities and drained their budgets. By terminating the AFFH rule, Turner aims to return decision-making power to local and state governments, allowing them to handle issues such as zoning, home building, and transportation without federal oversight. This change is expected to streamline compliance and allow for more market-driven development, particularly benefiting rural, urban, and tribal communities[2].
In addition to this policy change, Secretary Turner has initiated drastic program and staff cuts within HUD. As part of the Department of Government Efficiency (DOGE) efforts, led by Elon Musk, Turner has identified $260 million in cuts. These cuts include the termination of Section 4 nonprofit capacity building grants and funding for technical assistance programs that support community groups nationwide. Furthermore, HUD plans to cancel awards for some contractors, citing factors such as their involvement in diversity, equity, and inclusion (DEI) work. The department is also withholding $3.6 billion in Continuum of Care funds, which are crucial for rehousing homeless individuals and families fleeing domestic violence[5].
The workforce at HUD is also facing significant reductions, with a forecasted 50% reduction in staff, including the elimination of half of HUD’s field offices. This move could leave most states without on-site staff to underwrite mortgages and address other housing issues, potentially violating federal law that requires at least one field office in every state. Additionally, access to $20 million in Inflation Reduction Act (IRA) Greenhouse Gas Reduction Fund (GGRF) grants has been frozen, impacting projects aimed at climate resilience and energy efficiency in housing[5].
These actions have prompted a strong response from Senate Democrats, with a coalition led by Senators Elizabeth Warren and Schmer sending a letter to Secretary Turner demanding transparency on the DOGE Task Force and its impact on housing programs. The letter expresses concerns that these cuts will drastically impede HUD’s ability to serve the public and exacerbate the existing housing and homelessness crisis[5].
Secretary Turner's agenda also includes increasing the role of private equity in the rental market and introducing work requirements for housing assistance, reflecting his broader vision of reducing regulatory burdens and promoting market-driven solutions. His background as a housing development executive, leader of the White House Opportunity and Revitalization Council, and Texas state legislator has shaped his approach to housing policy, emphasizing the importance of local control and economic prosperity[1][5].
Overall, Secretary Turner's early actions at HUD signal a significant shift in housing policy, emphasizing local autonomy, reduced federal oversight, and fiscal efficiency, while also sparking concerns about the impact on vulnerable communities and the broader housing market.
One of the most notable actions taken by Secretary Turner is the termination of the Affirmatively Furthering Fair Housing (AFFH) rule, a move announced on February 28, 2025. This rule, introduced during the Biden administration, required localities to complete extensive paperwork and comply with stringent federal demands to ensure fair housing practices. Turner argued that this rule imposed costly red tape on localities and drained their budgets. By terminating the AFFH rule, Turner aims to return decision-making power to local and state governments, allowing them to handle issues such as zoning, home building, and transportation without federal oversight. This change is expected to streamline compliance and allow for more market-driven development, particularly benefiting rural, urban, and tribal communities[2].
In addition to this policy change, Secretary Turner has initiated drastic program and staff cuts within HUD. As part of the Department of Government Efficiency (DOGE) efforts, led by Elon Musk, Turner has identified $260 million in cuts. These cuts include the termination of Section 4 nonprofit capacity building grants and funding for technical assistance programs that support community groups nationwide. Furthermore, HUD plans to cancel awards for some contractors, citing factors such as their involvement in diversity, equity, and inclusion (DEI) work. The department is also withholding $3.6 billion in Continuum of Care funds, which are crucial for rehousing homeless individuals and families fleeing domestic violence[5].
The workforce at HUD is also facing significant reductions, with a forecasted 50% reduction in staff, including the elimination of half of HUD’s field offices. This move could leave most states without on-site staff to underwrite mortgages and address other housing issues, potentially violating federal law that requires at least one field office in every state. Additionally, access to $20 million in Inflation Reduction Act (IRA) Greenhouse Gas Reduction Fund (GGRF) grants has been frozen, impacting projects aimed at climate resilience and energy efficiency in housing[5].
These actions have prompted a strong response from Senate Democrats, with a coalition led by Senators Elizabeth Warren and Schmer sending a letter to Secretary Turner demanding transparency on the DOGE Task Force and its impact on housing programs. The letter expresses concerns that these cuts will drastically impede HUD’s ability to serve the public and exacerbate the existing housing and homelessness crisis[5].
Secretary Turner's agenda also includes increasing the role of private equity in the rental market and introducing work requirements for housing assistance, reflecting his broader vision of reducing regulatory burdens and promoting market-driven solutions. His background as a housing development executive, leader of the White House Opportunity and Revitalization Council, and Texas state legislator has shaped his approach to housing policy, emphasizing the importance of local control and economic prosperity[1][5].
Overall, Secretary Turner's early actions at HUD signal a significant shift in housing policy, emphasizing local autonomy, reduced federal oversight, and fiscal efficiency, while also sparking concerns about the impact on vulnerable communities and the broader housing market.