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Don’t Let Federal Money Block Affordable Homes
AKA “Stop Penalizing American Families”
Which agency/agencies promulgated the regulation? *
U.S. Department of Housing and Urban Development (HUD)
U.S. Department of the Treasury
U.S. Department of Transportation (DOT)
• 24 CFR § 92.205 and § 92.251 — HOME Program use and property standards (HUD)
• 26 CFR § 1.42-9(b) — IRS Low-Income Housing Tax Credit (LIHTC) design preferences (Treasury)
• 23 CFR § 450.322 and § 450.324 — Metropolitan planning requirements for transportation grants (DOT)
Specifically, rescind or revise provisions and program guidance that prioritize detached single-family housing over multi-family or mixed-use development.
—OPTIONAL--
Notice of Proposed Rulemaking
Detached Single-Family Design Preference in Federal Housing, Tax, and Infrastructure Programs
Across housing, tax, and transportation policy, federal rules have embedded a bias toward detached, single-family development—fueling sprawl, segregation, and artificial housing scarcity. HUD’s HOME program and LIHTC scoring criteria prioritize detached housing. DOT transportation planning guidance often centers on car-centric infrastructure that favors low-density zoning. Rescinding these programmatic preferences would allow communities to pursue more flexible, affordable, and sustainable development without being penalized in funding competitions.
HUD: 451 7th Street SW, Washington, DC 20410
Treasury: 1500 Pennsylvania Avenue NW, Washington, DC 20220
DOT: 1200 New Jersey Avenue SE, Washington, DC 20590
HUD: (202) 708-1112 · affordablehousing@hud.gov
Treasury: (202) 622-2000 · tax.policy@treasury.gov
DOT: (202) 366-4000 · planning@dot.gov
Post-WWII federal policy elevated suburban homeownership as a national priority. Over time, HUD, Treasury, and DOT encoded single-family bias into program design—favoring detached homes in HOME and LIHTC development, prioritizing road expansion in transportation grants, and reinforcing zoning systems that exclude renters and dense housing. These rules have locked in a structural preference that distorts local planning, drives up housing costs, and undermines racial and economic integration.
Federal money shouldn’t punish communities for trying to build apartments, duplexes, or mixed-use housing. Today’s crisis isn’t a lack of land—it’s a system of financial and regulatory disincentives for anything but sprawl. These detached-housing preferences are not mandated by statute—they’re artifacts of outdated rule design. Rescinding them would level the playing field and allow federal dollars to support housing diversity, affordability, and climate resilience.
• 24 CFR § 92.205 and § 92.251 would be revised to remove any implied or explicit preference for detached units or single-family design in HOME funding scoring.
• 26 CFR § 1.42-9(b) would be amended to eliminate LIHTC scoring preferences based on unit type (e.g. detached vs multifamily) unless explicitly tied to local needs assessments.
• 23 CFR §§ 450.322 and 450.324 would be revised to require that regional transportation plans consider zoning flexibility and multi-modal, high-density development as equal or superior to low-density expansion.
Scott Turner
Secretary of Housing and Urban Development