The Washington Report

The White House Office of Science and Technology Policy (OSTP) recently requested public input on regulatory reforms for artificial intelligence (AI). NAR commended the Administration’s leadership and outlined several ways to remove barriers to AI adoption and innovation in the real estate industry.

NAR’s response identified several regulatory areas where federal guidance, standards, and educational resources could support broader AI adoption and drive innovation:

• State Patchwork. NAR supported the Administration’s call for a unified federal framework, rather than a patchwork of state laws, for data privacy and AI governance. Clear and consistent national standards can help REALTORS® avoid unwarranted legal exposure when using AI tools across jurisdictions.
• Copyright Act. NAR advocated for a balanced approach to AI development that protects copyrights—including those for listings, photos, and other creative content—which are essential to our members’ livelihoods. This includes guidance and educational resources to help real estate professionals and AI developers understand when copyright protections apply to AI-assisted works.
• Fair Housing Act. NAR requested clear “rules of the road” and safe harbors to ensure REALTORS® can confidently use AI tools while complying with fair housing and other federal laws. This includes technical standards and easy-to-understand educational resources for both real estate professionals and consumers.

NAR also expressed its readiness to support and collaborate with OSTP and other federal agencies to help advance the responsible development and use of AI in real estate.

We will continue to keep members informed of developments in federal technology policy and AI regulation.

Read NAR's Comment Letter

NAR sent letters to Chairman Tim Scott and Ranking Member Elizabeth Warren of the Senate Banking Committee advocating for the swift confirmations of Francis Cassidy to serve as the Assistant Secretary of Housing and Federal Housing Administration (FHA) Commissioner at the Department of Housing and Urban Development (HUD); Joseph Gormley to serve as President of Ginnie Mae at HUD; and Travis Hill to serve as Chairperson of the Board of Directors Designate at the Federal Deposit Insurance Corporation (FDIC). The confirmation hearing was held on Thursday, October 30.  

Each nominee brings deep expertise and experience tailored to their role, enabling thoughtful and steady leadership at a time when the U.S. housing market faces a severe affordability crisis, with limited supply putting homeownership out of reach for many Americans. FHA, Ginnie Mae, and FDIC play critical roles in stabilizing and expanding access to housing by insuring loans for low- and moderate-income borrowers (FHA), guaranteeing mortgage-backed securities to attract investment in affordable housing (Ginnie Mae), and safeguarding consumer deposits to maintain trust in the financial system (FDIC). Together, they help ensure the liquidity, affordability, and resilience necessary to address the affordable housing crisis. 

On October 28, 2025, a federal judge in California issued a preliminary injunction further halting government shutdown-related layoffs at all federal agencies, including the Department of Housing and Urban Development (HUD). The ruling builds on an earlier restraining order and applies only to federal employees represented by the following unions: American Federation of Government Employees (AFGE); American Federation of State, County and Municipal Employees (AFSCME); National Federation of Federal Employees (NFFE); National Association of Government Employees (NAGE); Service Employees International Union (SEIU); National Treasury Employees Union (NTEU); American Federation of Teachers (AFT); and the International Federation of Professional and Technical Engineers (IFPTE). 

HUD must continue to suspend all planned reductions in force (RIFs) affecting these union members, including the 442 RIF notices issued on October 10th. Impacted offices include Fair Housing and Equal Opportunity with 114 staff, Public and Indian Housing with 103, Housing Operations and Counseling with 86, and Community Planning and Development with 30. Many of these employees remain furloughed due to the government shutdown. 

NAR will continue to monitor developments and provide updates as they unfold. For more information on the impact of the shutdown on housing, visit the link below. 

What a Government Shutdown Means for REALTORS® 

On October 27, 2025, the National Association of REALTORS®, in partnership with the California Association of REALTORS®, Greater Los Angeles REALTORS® Association, Southland Regional Association of REALTORS®, South Bay Association of REALTORS®, American Property Owners Alliance, National Apartment Association (NAA), and the National Multifamily Housing Council (NMHC), filed an amicus brief with the Ninth Circuit supporting housing providers in their challenge to the city of Los Angeles’ burdensome Rent Stabilization Ordinance (RSO).

Plaintiffs Melvia Harris, a retired teacher, and Gloria Knighten, a former municipal director, are small-scale landlords in Los Angeles. Their rental units fall under the RSO, which applies to properties built before October 1, 1978. Citing significant financial hardship, they filed a lawsuit in federal court challenging several provisions of the RSO as unjust and unconstitutional. In July, the federal court dismissed Plaintiffs' case. Harris and Knighten appealed to the Ninth Circuit, seeking reversal of the lower court’s ruling and a full opportunity to be heard, arguing the law was not properly applied.

The plaintiffs argue the RSO deprives property owners of constitutional protections and core property rights without just compensation. They challenge the 4% cap on rent increases as a regulatory taking that fails to account for rising operating costs and an equal protection violation. They object to the relocation fee requirement forcing landlords to pay hefty tenant relocation fees for no-fault evictions. They also claim the mandatory posting of tenant rights notices infringes on their free speech and encourages nonpayment of rent by tenants.  

NAR endorses plaintiff’s broader constitutional challenge to the RSO but focuses its arguments on plaintiffs' challenge to the Fair Market Rent (FMR) eviction restriction. This provision prohibits landlords from evicting tenants who owe less than one month's rent; however, the threshold is based on the Fair Market Rent amount published by the Department of Housing and Urban Development (HUD), not the actual rent allowed under the RSO. Because HUD's Fair Market Rent often exceeds the city's rent cap, landlords are left with inadequate rent payments and no legal means to remove nonpaying tenants. NAR argues that this provision constitutes an uncompensated taking under the Fifth Amendment by compelling landlords to house nonpaying tenants, directly undermining the long-recognized constitutional right to exclude others from one's property.

NAR strongly opposes rent control and eviction restrictions because such measures distort housing markets, discourage investment, and impose undue burdens on property owners, especially small-scale landlords. For Harris and Knighten, and property owners across the country, this case represents a fight for fairness and the right to manage private property without being overwhelmed and financially burdened by policies that are both economically and constitutionally unjust.

NAR will continue to monitor the status of this case and provide updates accordingly.

Amicus Brief in Melvia Harris et al. v. City of Los Angeles