The past several weeks produced more movement in federal housing policy than most full quarters. None of the developments below requires immediate action from most PHAs, but each one shapes planning decisions Executive Directors and boards are making right now. 

The ROAD to Housing Act Is Now Law. Implementation Is the Long Game. 

The 21st Century ROAD to Housing Act became law on July 11, 2026. AMA covered the bill in depth before enactment, and the provisions PHA leaders flagged then are now statute. The RAD cap increases by 100,000 units, bringing the program total to 555,000, and the program’s sunset date is gone, making RAD a permanent preservation tool. Units financed through LIHTC, HOME, or USDA Rural Housing that passed a qualifying inspection within the previous year can now satisfy HCV inspection requirements, a change most agencies have not yet mapped into their inspection workflows. 

There is one step agencies can take now. In the two previous RAD cap increases, HUD worked through its existing waiting list rather than opening a fresh application window, giving priority to PHAs with a Letter of Interest already on file. Agencies that want RAD capacity should submit or refresh a Letter of Interest before HUD issues its updated program notice. 

Enactment is the start of the process, not the end. HUD must produce more than 35 regulations, pilot programs, studies, and guidance documents before many provisions become operational, and two of the law’s pilot programs cannot launch until Congress appropriates funding for them. Expect guidance to arrive unevenly over several years, the same pattern HOTMA followed after 2016. 

FY2027 Funding: A Second Consecutive Year of Uncertainty 

FY2026 funding was not finalized until February 3, 2026. The FY2027 process is already showing the same pattern. 

The House FY2027 THUD bill, approved in committee in June, provides roughly 8 percent less for HUD than FY2026 enacted levels. The Public Housing Fund would drop by about $1.25 billion, roughly 15 percent, with the Capital Fund absorbing most of the reduction. Tenant-Based Rental Assistance would decrease slightly while Project-Based Rental Assistance would increase. The bill also exempts certain affordable housing projects from Build America, Buy America requirements. The Senate has not yet released its bill, and disagreements over topline spending levels have slowed its committee work. A continuing resolution ahead of the September 30 fiscal deadline is widely expected. 

These are proposals, not enacted numbers, but budget scenarios for calendar year 2027 should account for flat-to-reduced operating and capital funding until Congress settles the question. 

Continuum of Care: New Litigation, Unchanged Deadline 

HUD published the FY2026 CoC Program NOFO on June 1, 2026, making roughly $4 billion available. This section applies to PHAs that receive CoC funds or serve as collaborative applicants; for other agencies it is background. In recent weeks, a coalition of 23 states and the District of Columbia filed suit in federal court challenging parts of the notice, including a $1.3 billion set-aside for new transitional housing and supportive services projects and new scoring criteria. A separate group of local governments and nonprofits filed a supplemental complaint in the ongoing case that previously halted the FY2025 competition. 

The operational point for CoC recipients and collaborative applicants: litigation does not pause the competition. The FY2026 NOFO remains in effect, and applications are due August 26, 2026. Applicants should keep preparing under the published requirements while tracking the court docket. 

Disparate Impact Rulemaking Is Moving Again 

HUD’s proposed rule to remove its disparate impact regulations, published January 14, 2026 as Docket No. FR-6540-P-01, drew more than 1,100 comments before the comment period closed on February 13, 2026. HUD’s regulatory agenda currently shows the next scheduled action in September 2026. 

Nothing changes for PHAs today. The existing discriminatory effects regulations remain in effect until HUD issues a final rule, and courts continue to recognize disparate impact claims under the Fair Housing Act regardless of the regulation’s status. It stays on the monitoring list because the framework shapes how agencies evaluate facially neutral policies such as tenant screening criteria, occupancy standards, and admissions preferences. AMA covered the proposal in depth when it was published; the September window is the next milestone to watch. 

Updated ARF Guidance for Demolition and Disposition Activity 

HUD issued Notice PIH 2026-16 on May 29, 2026, updating guidance on eligibility for the Asset Repositioning Fee and superseding Notice PIH 2021-37. ARF is the add-on operating subsidy available when public housing units leave inventory through Section 18 demolition or disposition. The notice details eligibility timelines, calculation examples, and the IMS/PIC data elements that drive ARF determinations. PHAs with pending or planned demolition or disposition activity should verify their Demo/Dispo module data and coordinate with their field office before operating subsidy revision deadlines. 

What to Watch 

1. Submit or refresh a RAD Letter of Interest if your agency wants capacity under the new cap, and watch for HUD’s updated RAD program notice. 
2. Build FY2027 budget scenarios that assume flat-to-reduced operating and capital funding. 
3. Keep CoC applications on schedule for the August 26, 2026 deadline regardless of litigation headlines. 
4. Mark September 2026 as the next expected milestone in the disparate impact rulemaking. 
5. Review Notice PIH 2026-16 if your agency has demolition or disposition activity underway or planned. 

A Resource to Support Your Team 

AMA tracks federal legislation, HUD notices, and rulemaking activity affecting housing operations and translates each development into the operational steps agencies need. The AMA Resource Library collects the guidebooks and policy breakdowns behind that work. 

When Additional Support May Make Sense 

Agencies weighing RAD positioning, CoC application strategy, FY2027 budget planning, or operating subsidy submissions do not need to build that capacity alone. AMA supports policy monitoring, board-ready briefings, and the operational work behind each of these developments. 

Additional Reading

1. 21st Century ROAD to Housing Act, full bill text and status: https://www.congress.gov/bill/119th-congress/house-bill/6644
2. Bipartisan Policy Center, FY2027 HUD Appropriations Tracker: https://bipartisanpolicy.org/explainer/fy2027-hud-appropriations-tracker/
3. HUD’s FY2026 Continuum of Care Program Competition page: https://www.hud.gov/hud-partners/community-coc
4. Proposed rule, HUD’s Implementation of the Fair Housing Act’s Disparate Impact Standard, Federal Register, January 14, 2026: https://www.federalregister.gov/documents/2026/01/14/2026-00590/huds-implementation-of-the-fair-housing-acts-disparate-impact-standard
5. Notice PIH 2026-16, Guidance on Eligibility for the Asset Repositioning Fee: https://www.hud.gov/sites/default/files/hudclips/documents/PIH-2026-16.pdf

This article is intended as general information and does not replace HUD regulations or official guidance.