The U.S. Department of Housing and Urban Development (HUD) is facing strong criticism from both builders and civil rights advocates. They argue that HUD’s policies are driving up housing costs while failing to enforce anti-discrimination laws.
Builders say HUD rules increase costs and delay construction
In April, National Association of Home Builders (NAHB) Chairman Buddy Hughes testified before Congress. He said regulations make it harder and more expensive to build homes.
“Regulatory costs now make up nearly 25% of the price of a single-family home,” Hughes said. “In multifamily construction, it’s over 40%. We need to eliminate barriers so builders can increase supply.”
Builders especially criticized HUD’s recent mandate tied to energy codes. The rule requires new homes funded by HUD or USDA programs to follow the 2021 International Energy Conservation Code (IECC).
That rule, according to builders, adds $22,000 to $31,000 to the cost of a home. They also point out it can take 90 years for homeowners to see savings from those upgrades.
Critics say HUD is failing to enforce fair housing laws
Civil rights advocates have raised alarms for a different reason. They say HUD is no longer doing enough to stop housing discrimination.
A ProPublica investigation found that HUD has closed or frozen at least 115 fair housing cases since early 2025. Many more are stuck in limbo.
- The Fair Housing Office is losing over one-third of its staff.
- Complaint hotlines and emails are shut down or unmonitored.
- Local nonprofits lost critical HUD grants.
- Lawyers need political approval for basic legal steps like sending subpoenas.
“The civil rights laws that people fought for are not being enforced,” said Paul Osadebe, a HUD attorney and union steward. “People are being harmed.”
Real people face real consequences
In Arkansas, Kennell Staten, a gay man, filed a complaint after being denied housing. The property manager allegedly said he was “too flamboyant” for the building. Two days later, HUD dismissed his case.
In New York, a woman said a building maintenance worker sexually harassed her for years. HUD investigators found her claims credible. But top officials have not allowed a formal charge to move forward.
Other cases involving race and disability discrimination have stalled or been dropped. Lawyers say this shift leaves people without protection.
Builders and civil rights groups agree: HUD is broken
Although their concerns differ, both builders and civil rights groups say HUD is failing.
- Builders want HUD to stop enforcing expensive energy codes that make homes unaffordable.
- Advocates want HUD to restore funding and resources to protect vulnerable renters and buyers.
Meanwhile, the U.S. still faces a housing shortage of over 1.5 million units. Affordability is declining. Discrimination complaints are rising. But HUD appears unprepared to handle either crisis.
What happens next?
Congress has not passed any major reforms. HUD officials say they are committed to fairness and affordability. But critics remain skeptical.
Until action is taken, HUD will remain in the spotlight for all the wrong reasons.