HUD nixes ‘substantial burdens’ on multifamily property owners 

This week in Washington, D.C., HUD has rescinded an Obama-era policy interpretation that the department said has added over $110 million in "extra costs" for builders and homeowners over the past five years.

Meanwhile, a state bill that also sought to protect builders and homeowners from legal costs associated with defects in new homes failed to advance in California.

And in the halls of Congress, Republicans in the House have proposed a reform package targeting Consumer Financial Protection Bureau (CFPB) policies, which includes bringing the bureau's funding under congressional oversight.

HUD ends multifamily building accessibility policy

On Sept. 1, HUD Secretary Scott Turner announced that his department has rescinded a policy interpretation embraced during the Obama administration that "contributed to the skyrocketing cost of building, buying, and renting a home."

Previously, individuals were able to file complaints at any time over lacking accessibility features in multifamily buildings. Many building owners invested significant amounts of money to update their properties as a precautionary measure, according to HUD, which estimated that those "substantial burdens on subsequent innocent owners" breached $110 million in the past five years alone.

Those "extra costs on builders" were ultimately "passed on to homebuyers and renters," Turner said in a social media post.

Now, anyone who wishes to file an accessibility-related complaint against a building owner will only be able to do so within one year after construction of the building has completed, according to HUD's updated guidance.

"Today's action rescinds unnecessary and expensive liability created by legal theories that have no basis in law," Turner said in a news release.

Fair housing groups, which recently notched a win in a lawsuit against HUD, are likely to object to the change.

California bill aiming to address 'third rail' of housing dies

Meanwhile, a state legislative effort that shares some commonalities with HUD's move failed to advance this week in California.

AB 1903, introduced in the California State Assembly earlier this year by Democrats Buffy Wicks and Lori Wilson, sought to revise when legal action can be taken in response to "defects" in new homes. The bill would have given homeowners and builders opportunities to address concerns with a home's design or build "before lawyers tie up new housing in court," according to the nonprofit California YIMBY.

Though the bill passed state assembly committees in the spring and advanced in the state Senate Judiciary Committee in late June, it died in the California Senate this week.

In a series of posts on social media, Wicks said she felt "incredibly disappointed & frustrated" by the bill's demise after putting "hundreds of hours" and "months of negotiations" into its crafting.

"This issue has been a third rail. Structural change is necessary," Wicks wrote, adding that even with the disappointment, she is not giving up and has "no doubt we can bring back something even stronger."

Republican bill aims to create 'durable guardrails' for the CFPB

This week, House Republicans have unveiled a bill that they say will "restore accountability" to the CFPB.

Introduced on Sept. 1 by Republican leadership in the House Committee on Financial Services, the Consumer Financial Protection Accountability and Reform Act of 2026 aims to outline "clear and consistent rules for consumers and financial institutions, promote innovation and competition, and establish a more predictable, risk-based approach to federal oversight," according to a committee news release.

The legislation would create "durable guardrails" to make the agency "more accountable and transparent," said Rep. French Hill, the committee chair. If passed, the bill would require the CFPB to secure funding from Congress rather than from the Federal Reserve. It would also create an inspector general position designed specifically to oversee the agency.

The proposal comes after a difficult 18 months for the embattled CFPB, which has undergone numerous staffing and funding cuts since President Donald Trump returned to the White House.