The multifamily housing sector is seeing a string of favorable outcomes at the federal level this summer, with court victories, legislative progress, and funding decisions that could have far-reaching impacts for property owners and developers, including those in Arizona.
Court clears path for COVID eviction moratorium claims
In a landmark decision, the U.S. Court of Appeals has confirmed that rental property owners may pursue compensation from the federal government for income lost during the pandemic’s eviction moratorium. The court ruled that such losses may qualify for restitution under the Fifth Amendment’s “takings clause.”
Property owners who were financially harmed have until August 2026 to join ongoing claims. The decision is viewed by housing advocates as a major property rights win.
Bipartisan housing bill advances
The ROAD to Housing Act, which seeks to reduce local zoning barriers, streamline environmental reviews, and allocate $1 billion for innovative housing projects, cleared a Senate committee with unanimous bipartisan support. The bill also updates HUD programs to better address today’s development challenges. Industry groups have called it a potential “game-changer” for expanding multifamily housing options nationwide.
HUD ordered to release fair housing grants
A federal judge has directed the Department of Housing and Urban Development to move forward with awarding Fair Housing Initiatives Program grants, which fund organizations that fight housing discrimination and promote equal access. HUD must issue a timeline before the Sept. 30 funding deadline.
Senate budget proposal boosts housing funds
While the House has proposed holding HUD’s budget flat, the Senate is pushing for modest increases to key programs, including Community Development Block Grants and the HOME Investment Partnerships Program, both of which support affordable housing development.
Interest rates remain unchanged
The Federal Reserve voted in July to keep interest rates steady, citing inflation concerns. For multifamily housing, the move means construction and mortgage financing will remain costly, prolonging development challenges in a tight housing market.
The developments represent a rare period of momentum for the housing sector at the federal level, touching legal rights, funding streams, and regulatory barriers all at once.
