President Trump’s recent “Removing Regulatory Barriers” executive order aims to remove federal and local regulatory barriers to building more affordable homes. That sounds promising — but what does it actually mean for affordable rental housing, like public housing and Housing Tax Credit developments?
What the order targets
- Zoning and land-use rules that limit density or block multifamily housing
- Slow permitting and long discretionary reviews
- Lengthy environmental reviews on federally involved projects
- Conditions on federal grants and loans that add time or cost
The likely effects on affordable rental housing
- Faster approvals and shorter timelines
Streamlined permitting and simpler reviews can speed up project approvals. That lowers carrying costs (interest, insurance, holding costs) and helps projects close sooner. For subsidized developments — where timing affects how far each subsidy dollar stretches — faster approvals can make more projects feasible. - Lower some development costs
Reducing fees, easing certain mitigation requirements, or allowing denser building can cut both soft and hard costs. That doesn’t erase big costs like land, labor, and materials, but it can reduce the subsidy needed per unit. - More subsidized units — but not everywhere
Where local rules actually change, developers using LIHTC, HOME, or other subsidies may build more units. But in areas that resist zoning changes, the impact will be limited. So, the order could increase supply in receptive places while doing little elsewhere. - Better financing conditions
Quicker, clearer entitlements lower development risk. Lenders and investors may offer better terms, which also reduces required subsidy per unit and encourages more affordable development. - Many federal rules still apply
The order doesn’t erase statutory program rules. Income targeting, rent limits, prevailing-wage rules (like Davis-Bacon), and other legal requirements remain. Environmental and historic-preservation laws may still apply in many cases. So cost and compliance savings will be partial, not total.
Potential downsides and risks
- Legal challenges and delays: If reviews or protections are cut too much, projects may face lawsuits that slow them down.
- Uneven benefits: If only some localities liberalize zoning, new subsidized housing may cluster in certain places, deepening geographic inequality.
What this means for different groups
- Developers: Less entitlement risk and faster closings make affordable development more attractive.
- Public housing authorities and nonprofits: Easier site assembly and approvals help, but they still need capital and operating subsidies to run buildings.
- Local governments: They’ll balance local control with incentives or penalties tied to federal funds — outcomes will vary widely.
How to get the best outcome
- Tie changes to protections: Pair zoning reforms with anti-displacement policies, community benefits, and preservation funding.
- Keep core safeguards: Preserve environmental review and labor protections where necessary to avoid long-term harm.
- Provide technical help: Federal and state agencies should support localities and nonprofits to implement reforms equitably.
- Monitor and enforce fair housing: Ensure relaxed rules don’t worsen segregation or limit access for vulnerable groups.
Bottom line
The executive order could lower some time and cost hurdles that slow affordable rental housing development. That can help produce more units and make subsidies go further. But it isn’t a cure-all. The real impact will depend on how rules are rewritten, how local governments respond, and whether reforms are paired with funding.