The Washington Report

On Friday, April 24, the U.S. Department of Housing and Urban Development (HUD) sent a “Dear Colleague” letter to HUD-funded fair housing organizations and real estate professionals emphasizing that it is not a violation of the Fair Housing Act to share information with prospective homebuyers about neighborhood crime rates and school quality data.

The National Association of REALTORS® (NAR) agrees that consumers seeking information about neighborhood schools and crime should have access to accurate and complete data during their home search. Consistent with this position, NAR’s Code of Ethics and Standards of Practice explicitly allow members to share neighborhood demographic information, as long as it is not racial, ethnic, or religious.  Since the 1980s, NAR guidance has encouraged members to share objective, factual information about schools and crime, provided by a reliable third-party source. At the same time, NAR has advised caution about the way these topics are discussed. Subjective commentary, personal opinions, or hearsay about schools or crime have been cited as evidence of discriminatory intent and intentional steering in numerous fair housing legal cases.

NAR’s guidance on crime data and school quality has been consistent for decades. NAR ’s guidance on these topics from handbooks and manuals, informed by fair housing case law, include: 

• Passwords and Prejudice: A REALTORS Guide to Fair Housing Compliance (1988)
• Fair Housing for All VAMA Handbook (1992)
• Fair Housing Handbook: Shared Neighborhoods, Equal Opportunities, Fifth Edition (2010)
• The Real Estate Sales Pocket Guide (2016)

As the leading voice for real estate professionals, the National Association of REALTORS® brings deep expertise in fair housing and its application in practice every day. NAR will continue to review HUD’s letter and its implications for our members and the consumers they serve. NAR appreciates the opportunity to further engage HUD and other stakeholders to ensure clear guidance that supports both compliance and the ability of REALTORS® to effectively serve clients in every ZIP Code across the country.

HUD and USDA announced this week that they are rescinding a 2024 rule requiring new homes purchased with FHA or USDA loans to meet the 2021 edition of the International Energy Conservation Code (IECC), a more stringent standard than what was previously required. The action does not eliminate energy efficiency requirements for these loan programs, but reverts them to the prior standard. The agencies cited affordability as the driving rationale, noting that compliance with the 2021 edition of the IECC would have added an estimated $20,000 to $31,000 to the cost of a new home.

Federal housing agencies are required by law to periodically update their energy efficiency standards to align with new IECC editions. The 2021 edition became the applicable benchmark for FHA and USDA programs in 2024. Amid industry concerns over its cost impact, HUD and USDA suspended enforcement of the rule in 2025 and invited stakeholder comment to help inform the agencies' review.

NAR submitted comments urging HUD and USDA to reconsider mandatory code requirements and instead support voluntary approaches that promote energy efficiency without suppressing housing production. "Eliminating or streamlining burdensome regulations in the housing ecosystem, particularly when it comes to building and development, is key to supporting access to housing and homeownership," wrote 2025 President Kevin Sears. "While NAR believes building high-performing energy efficient and quality homes nationwide is necessary to address the supply crisis, we are encouraged by the agencies’ desire and efforts to provide builders with the most flexibility in meeting energy efficiency measures."

On April 30, NAR sent a letter to the leadership of the House and Senate Appropriations Subcommittees on Transportation, Housing and Urban Development, requesting full funding for essential housing programs in the Fiscal Year (FY) 2027 funding bill.

The Housing Choice Voucher program provides critical housing stability for millions of families, and its success depends on the small, independent housing providers, including many REALTORS®, who participate in it. The letter urges Congress to maintain full funding for the program and to support mobility services that help families access a broader range of housing options.

NAR strongly supports robust fair housing enforcement and calls for full funding of the Fair Housing Initiatives Program, the Fair Housing Assistance Program, and full staffing of HUD's Office of Fair Housing. Many REALTOR® associations collaborate with local fair housing organizations on education and outreach in their communities, and the potential closure of these organizations would remove an essential resource for both consumers and housing professionals. At the same time, state and local fair housing agencies serve as HUD's enforcement partners, processing the vast majority of fair housing complaints and conducting investigations on behalf of families and housing providers, and their capacity to do so depends on reliable federal funding.

NAR also urges full funding for HUD's Housing Counseling Assistance program. NAR research shows that due to affordability challenges driven by the lack of housing supply, the share of first-time buyers has fallen to a record low of 21 percent, down from 44 percent in 1981, and the typical first-time buyer is now 40 years old. Full funding will ensure HUD-approved agencies can continue delivering the complete range of counseling services, including prepurchase counseling, to the families who need them most.

Finally, the letter urges Congress to preserve the HOME Investment Partnerships and Community Development Block Grant programs, which give local governments the flexibility to address their unique housing challenges while leveraging private investment to expand supply and strengthen neighborhoods.

NAR looks forward to working with Congress throughout the FY 2027 appropriations process to ensure these programs receive the resources they need.