NEW YORK – New York Attorney General Letitia James is leading a charge against the U.S. Department of Housing and Urban Development (HUD), accusing the agency of deliberately dismantling decades of progress towards integrated communities. James joined a coalition of 18 state attorneys general in a scathing rebuke of new HUD rules that significantly weaken requirements for grant recipients to actively promote fair housing.
The fight centers around HUD’s March 2025 announcement of interim rules that effectively gut prior efforts to combat housing segregation. These rules eliminate nearly all fair housing requirements for organizations receiving federal funding – requirements that had been in place for years. The attorneys general argue, in a detailed comment letter, that these changes are a blatant violation of the Fair Housing Act.
“It’s a disgrace that the Trump administration is attempting to erase HUD’s responsibility to prevent housing discrimination,” Attorney General James stated bluntly. “Fair housing isn’t just about compliance; it’s about dignity. Everyone deserves equal access to safe, affordable housing, and HUD has a duty to protect that right. We won’t stand by while they dismantle decades of progress.”
The Fair Housing Act mandates that HUD administer programs to prevent discrimination in housing and “affirmatively further fair housing” (AFFH) – meaning actively working to integrate communities and dismantle segregation. A 2021 rule required grant recipients to certify their AFFH compliance before receiving federal funds. The new rules replace this robust requirement with a watered-down certification process, effectively dismantling previous AFFH rulemaking efforts. The AGs contend the new rules lack any meaningful evaluation of how actions impact segregation and ignore HUD’s legal obligation.
This isn’t an isolated battle. Attorney General James has been consistently fighting for fair housing access. Last month, she co-led a coalition urging the U.S. Court of Appeals for the First Circuit to reinstate funding for fair housing organizations in New York and nationwide. Earlier this year, she secured action against individuals illegally denying housing to low-income renters: in April, stopping brothers and their spouses who own three rental buildings in the Capital Region, and in February announcing $970,000 in grants to expand fair housing testing. In August 2024, Shamco Management Corp. paid $400,000 for illegally denying housing to low-income tenants in New York City, and in February 2024, James reached an agreement with real estate broker Pasquale Marciano to halt discriminatory policies.
The comment letter argues the interim rule is not only contrary to the spirit of the Fair Housing Act but lacks any factual basis for such a drastic policy shift. Critics say the move effectively neuters HUD’s oversight, leaving communities vulnerable to the persistence of segregation and its devastating consequences. The fight over these rules is likely to escalate, with James and her fellow attorneys general vowing to hold HUD accountable and protect the fundamental right to fair housing.
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Key Facts
- State: New York
- Agency: NY AG
- Category: Public Corruption
- Source: Official Source ↗
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