Fair Housing Friday: HUD Moves to Rescind AFHMP Rules—What NYC Licensees Need to Know (and Do) Now

By: Sydney Harewood. LRSP, NYC
Broker: LEVEL
5 West 37th Street
New York, NY 10018
www.nycexclusiveapts.com 
"Your Premier Bridge to Manhattan Living."
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Phone: 646-535-3819
Email: sharewood@levelgroup.com

Good Friday morning, my friend. Here’s the compliant, coffee‑sized briefing on HUD’s proposed shift to Affirmative Fair Housing Marketing (AFHM)—and how you keep your practice buttoned‑up.

TL;DR (Two‑Minute Brief)

• What HUD proposed: Rescind the Affirmative Fair Housing Marketing regulations (24 CFR Part 108 and Part 200, Subpart M) that require Affirmative Fair Housing Marketing Plans (AFHMPs) and related compliance steps. Comments closed July 3, 2025; the rule is not final yet. (GovInfo)
  
• What that would mean: No more AFHMP submissions or pre‑marketing notifications; HUD estimates eliminating ~12,000 staff hours annually across programs. Anti‑discrimination obligations still apply under the Fair Housing Act and HUD rules. (GovInfo)
  
• What REBNY highlighted: HUD would shift from plan‑filing to investigating discriminatory practices (ads, screening, leasing). Even if AFHMP filing ends, nondiscrimination remains mandatory.
  
• Context: Separately, HUD issued an interim final rule on AFFH (effective Apr 2, 2025) resetting grantee certifications; that does not remove your Fair Housing Act duties. (Federal Register)
  

What sparked today’s post

REBNY’s Fair Housing Friday explains HUD’s proposed rescission of AFHM rules (first adopted in the 1970s) and what it could mean for owners, developers, and the licensees who market HUD‑assisted properties.

What HUD actually proposed (plain English)

1) Rescind AFHM Regulations

• Targeted parts: 24 CFR Part 108 (compliance procedures) and 24 CFR Part 200, Subpart M (marketing regulations). (GovInfo)
  
• Status: Proposed rule published June 3, 2025; comment deadline July 3, 2025; final action pending. (GovInfo)
  

2) Eliminate AFHMP filing & compliance mechanics

• Ends the requirement to submit AFHMPs (e.g., HUD Forms 935.2A/B/C) for HUD review/approval. (GovInfo)
  
• Rolls back associated steps like 90‑day notifications, pre‑occupancy conferences, and related sanctions (all found in Part 108). (GovRegs)
  
• HUD’s stated rationale includes statutory authority limits and constitutional concerns; the move also reduces administrative burden. (GovInfo)
  

3) What’s unchanged

• The Fair Housing Act still prohibits discrimination in advertising, screening, and leasing—rescission wouldn’t legalize discriminatory marketing. (HUD)
  
• HUD’s separate AFFH framework currently operates under an interim final rule (effective April 2, 2025). (Federal Register)
  

How REBNY frames it: If finalized, no plan filing, but enforcement pivots to complaints & investigations into discriminatory practices. Keep your processes neutral and compliant.

Who’s affected (and who isn’t)

• Directly affected: Participants in FHA insurance and Multifamily rental assistance programs who today must prepare and file AFHMPs. (GovInfo)
  
• Everyone else: Your Fair Housing Act and NY state/NYC obligations still apply; this proposal doesn’t change private‑market duties to avoid discriminatory advertising and steering. (HUD)
  

“Before vs. After” (Text Infographic)

BEFORE (Current Rules)

- Submit AFHMP (HUD 935.2 forms) for approval

- 90-day Notification of Intent to Begin Marketing

- Pre-occupancy conference; monitoring & sanctions

- Document targeted outreach (incl. minority media)

AFTER (If Finalized)

- No AFHMP submission or pre-marketing notifications

- No AFHM-specific conferences/sanctions framework

- Maintain nondiscriminatory advertising & screening

- HUD focuses on investigating discriminatory practices

Sources: Federal Register proposed rule; REBNY’s member briefing. (GovInfo)

NYC Agent Playbook: What to do right now

Short answer: Keep marketing inclusive and well‑documented. Until HUD finalizes anything, comply with current AFHM obligations where applicable.

• If you work on HUD‑assisted deals:
  

• Continue following existing AFHMP/Part 108 procedures until a final rule says otherwise. (Legal Information Institute)
  

• For all listings (assisted or not):
  

• Audit ads for prohibited phrases and targeting; ensure copy and imagery don’t imply preferences. (HUD)
  
• Standardize screening (same criteria for everyone) and document decisions. (Enforcement typically turns on records.)
  

• For teams/brokers:
  

• Update your fair‑housing training with a module on “ads & algorithms” (digital targeting can create risk). (HUD)
  
• Keep a one‑pager that explains neutral phrasing and client‑led area selection to avoid steering.
  

Talking points for clients & owners (copy/paste)

• “We follow the same, neutral marketing and screening process for everyone. It’s required and it protects you.”
  
• “Current HUD rules still apply to HUD‑assisted properties; we’ll adjust if HUD finalizes changes.” (GovInfo)
  
• “Even if plan‑filing ends, discrimination remains illegal in advertising, tenant screening, and leasing.” (HUD)
  

Key details & dates (for your compliance file)

• Proposed rule: Rescission of Affirmative Fair Housing Marketing Regulations (Docket FR‑6533‑P‑01), June 3, 2025; comments due July 3, 2025. (GovInfo)
  
• What’s being rescinded: 24 CFR Part 108 and Part 200, Subpart M (the AFHM plan regime dating to the 1970s). (Justia)
  
• Burden impact: HUD notes elimination of ~12,102 hours annually tied to AFHMP prep/review. (GovInfo)
  
• AFFH context: Interim final rule effective Apr 2, 2025 resets grantee certifications but keeps the mandate to affirmatively further fair housing. (Federal Register)
  

Helpful outlinks (authoritative sources)

• Federal Register—Proposed Rule (AFHM rescission). Clear summary, affected CFR parts, timelines. (GovInfo)
  
• CFR Background—Part 108 & Subpart M. See today’s compliance procedures (e.g., 90‑day notice). (Legal Information Institute)
  
• HUD Forms—AFHMP (HUD‑935.2 series). Current forms still in play until rules change. (HUD)
  
• HUD—Advertising & Marketing Guidance. What’s prohibited in ads; complaint process. (HUD)
  
• Federal Register—AFFH Interim Final Rule (Mar 3, 2025). Current AFFH status for grantees. (Federal Register)
  

Source & attribution

This blog summarizes REBNY’s Fair Housing Friday email, “Understanding HUD’s Proposed Updates to Affirmative Fair Housing Marketing” by Neil B. Garfinkel (REBNY Broker Counsel), sent Sept 19, 2025, and places it in context using the Federal Register and HUD primary sources. (GovInfo)

Compliance note (not legal advice)

This is educational and not legal advice. For deal‑specific questions, consult your brokerage counsel or your own attorney.

One last nudge (from your coach)

Even if AFHMP filing goes away, consistency and documentation are forever. Keep your scripts neutral, your ads clean, and your files tidy. Future‑you—and your license—will be grateful.

Sydney Harewood is a real estate professional with a passion for NYC’s architectural gems. For inquiries, call or message Syd at 📞646-535-3819. Experience the finest in NYC real estate with Syd’s expert guidance and deep knowledge of the city’s most exquisite properties.

We hope you found this information helpful. If you have any other questions or need more details, feel free to contact us.