The Washington Report

The Government Accountability Office (GAO) will investigate cuts to fair housing enforcement at the Department of Housing and Urban Development (HUD). The investigation follows HUD's attempt to claw back $30 million in grants awarded to local fair housing centers. Four of the groups successfully sued to block the administration from withholding the allocated funds.

The investigation was launched in response to a request from Ranking Member of the Senate Committee on Banking, Housing, and Urban Affairs, Senator Elizabeth Warren (D-Mass.), as well as Senators Tina Smith (D-Minn.), Cory Booker (D-N.J.), Raphael Warnock (D-G.a.), and Alex Padilla (D-Calif.). It follows a letter signed by 119 members of Congress to HUD Secretary Scott Turner requesting information about proposed further fair housing cuts, including reports of staffing reductions of 76% to HUD's Office of Fair Housing and Equal Opportunity.

On March 26, the Federal Housing Administration (FHA) issued Mortgagee Letter (ML) 2025-09, and Title I Letter (TIL) TIL-490, revising the residency requirements for program participants. Specifically, FHA is removing the eligibility of “non-permanent residents” from the Title I Property Improvement and Manufactured Home Loan, Title II Single Family, and Home Equity Conversion Mortgage (HECM) programs by May 25, 2025. Per FHA, the changes align with President Trump’s call to prioritize benefits for U.S. citizens and lawful permanent residents. FHA also states the changes ensure program integrity because “non-permanent residents are subject to immigration laws that can affect their ability to remain legally in the country,” which “poses a challenge for FHA as the ability to fulfill long-term financial obligations depends on stable residency and employment.”

FHA did not elaborate on how many non-permanent residents have participated or currently participate in these FHA programs as it does not collect residency information.

NAR is actively engaging with FHA to evaluate the effects of the policy change on current participants and potential borrowers and will provide updates accordingly. 

On Wednesday, April 2nd, NAR testified before the U.S. House Education and Workforce Subcommittee on Health, Employment, Labor, and Pensions in support of the Association Health Plans Act. At the hearing, which focused on expanding access and affordability of employer-sponsored health care, Angela Shields, CEO of Tennessee REALTORS®, expressed NAR’s strong support for the bill to allow self-employed individuals and small businesses to participate in association health plans (AHPs).

The need for comprehensive, affordable health insurance options alongside the Affordable Care Act (ACA) is a top concern among real estate professionals. In 2019, REALTOR® associations in Tennessee and other states created AHPs to provide high-quality, low-cost health coverage options to their members. These AHPs offered comprehensive health coverage for pre-existing conditions and all ten of the ACA’s essential health benefits, with lower deductibles and broader provider networks than ACA plans.

Unfortunately, a federal district court overturned the regulation allowing associations to offer AHPs, forcing them to discontinue their plans. Shields highlighted the devastating impact this had on members, many of whom had serious pre-existing conditions and relied on the affordable, comprehensive health coverage provided by the AHPs.

Chairman Walberg has introduced the Association Health Plans Act, which would allow REALTOR® associations to again offer comprehensive, affordable coverage. Shields emphasized that the bill provides a choice, allowing self-employed individuals and small businesses to decide which works best for them: the ACA or an AHP.

NAR continues to support the ACA but recognizes that high deductibles and limited networks make it unworkable for most NAR members. AHP health coverage offers a viable insurance option for those members who find the ACA does not meet their needs. Shields urged Congress to work together to build on the AHP Act to provide a choice to self-employed individuals and small businesses.

Read NAR’s written testimony.

For additional information on NAR’s health insurance advocacy efforts, please visit NAR's Health Care Reform topic page.