NCSHA Washington Report | October 31, 2025

In the absence of an overarching federal law governing artificial intelligence, state governments, approaching AI as both regulators and users, have moved quickly to define some of the rules.

Over the past two years, governors in at least 14 states have issued executive orders related to AI. State legislatures have introduced more than 735 AI bills this year alone. Around 100, in 38 states, have passed. “[T]here has never been a period in state history since the introduction of the internet that saw as much legislation proposed or passed around one technology,” according to a report New America published this month.

The authors found that a little more than three-quarters of the recent legislation is aimed at restricting or controlling the uses of AI, as opposed to “how to advance AI or enable its use.” The remaining share covers a wide range of issues, with workforce, public safety, health, and education emerging as priorities.

Housing has not been a primary focus of state AI legislation, with the exception of efforts to limit AI in setting rent prices, an issue that has seen bills introduced in 23 states and laws enacted in two (California and New York). Some advocacy groups worry that AI unchecked related to rents could bring “speed, scale, and secrecy to harmful practices,” including housing discrimination and price gouging. Landlords argue AI is “enhancing operations, improving affordability, and delivering better outcomes for millions of renters” and say existing laws offer sufficient consumer protection.

States are also exploring ways AI can help to reduce the costs of burdensome regulations and excessive procedures on housing. California is testing a tool to speed up building permits in parts of Los Angeles devastated by the 2024 wildfires “by enabling owners to pre-check their plans before submission, reducing delays and expediting the review process once received by city or county staff.”

Virginia Governor Glenn Youngkin last summer announced a comprehensive plan to use generative AI “to identify redundancies, contradictions and overly complex language” in state regulations, citing simpler housing rules as an area of progress to build on. Colorado is working to “comprehensively redesign” its rental assistance programs based on stakeholder interviews and process improvements generated by an AI tool.

In Idaho, the Housing and Finance Association is implementing wide-ranging uses of AI that “have already realized significant operational costs savings” on the way it believes to “a sustainable source of competitive advantage…for decades to come.”

Looming over this wave of experimentation in the laboratories of innovation in American policymaking, the states, is the prospect of federal action that seeks to override their initiative. The House’s version of the “Big Beautiful Bill” included a 10-year moratorium on state and local AI regulation. While the provision was dropped from the final version that became law in the face of intense bipartisan opposition, its backers are expected to try again.

And the White House’s AI Action Plan, released in July, suggests federal agencies should withhold funding from states they determine have “burdensome AI regulations.” Sound familiar?

Stockton Williams | Executive Director

In This Issue

• NCSHA Welcomes New Members
• NCSHA Signs Industry Letter Supporting CoC Renewals; House Republicans Press Administration
• NCSHA Co-Leads ACTION Letter Asking House to Increase PWI Cap
• Senate Banking Committee Holds Hearing for HUD Nominees Cassidy, Gormley
• Vera Institute Opens RFP for Opening Doors Initiative
• NCSHA in the News
• Looking Ahead

NCSHA Welcomes New Members
These organizations joined NCSHA as Affiliate members in October: BlackFin Group LLC; Built Technologies; Federal Home Loan Bank of Cincinnati; Homium, Inc.; LDG Development, LLC; Lument; MuniPro; Northland Securities; Pretium; and Trinity Development. If you have a partner who is interested in becoming a member, please contact membership@ncsha.org.

NCSHA Signs Industry Letter Supporting CoC Renewals; House Republicans Press Administration
This week, national housing organizations and congressional leaders urged the U.S. Department of Housing and Urban Development (HUD) to prevent disruptions to supportive housing programs by extending all Continuum of Care (CoC) grants for an additional 12 months. In a joint letter led by national affordable housing lenders and investors, including NCSHA, more than a dozen trade groups warned that, without a blanket renewal, thousands of supportive housing projects serving people with disabilities and those exiting homelessness could face critical funding gaps. A separate letter from congressional Republicans echoed the same concern, asking HUD to extend expiring 2026 CoC grants while it transitions to a new funding cycle. Both letters underscore broad bipartisan agreement that maintaining continuity in CoC funding is essential to keeping vulnerable residents housed and preserving stability in the nation’s supportive housing system.

NCSHA Co-Leads ACTION Letter Asking House to Increase PWI Cap
On October 30, the ACTION Campaign, which NCSHA co-chairs with Enterprise Community Partners, sent leaders on the House Financial Services Committee and its Housing and Insurance Subcommittee a letter encouraging them to include an increase in the cap on banks’ public welfare investments (PWIs) in any housing legislation the committee considers this year. The ROAD to Housing legislation — which recently passed the Senate as part of an amendment to the National Defense Authorization Act — includes a provision to increase the PWI cap from 15 to 20 percent of banks’ capital and surplus. Investments in the Housing Credit fall under the PWI cap, thus raising the cap would allow banks to increase their investment in Housing Credit developments, as some banks are at or nearing the maximum allowable under current law. While NCSHA does not expect the House to pass the ROAD to Housing Act in its entirety or without changes, NCSHA is working to elevate our key priorities from that bill with housing authorizers in that chamber. Lifting the PWI cap is one of several NCSHA priorities in the ROAD to Housing Act.

Senate Banking Committee Holds Hearing for HUD Nominees Cassidy, Gormley
The Senate Banking Committee yesterday held a hearing to consider the nominations of Frank Cassidy as Federal Housing Administration (FHA) Commissioner and Assistant Secretary of Housing at HUD and Joseph Gormley to serve as President of Ginnie Mae. In his opening statement, Committee Chair Tim Scott (R-SC) praised both nominees, saying Cassidy and Gormley would help ensure the nation’s housing finance system remains accessible. Ranking Member Elizabeth Warren (D-MA) countered that, in their current positions at HUD and Ginnie Mae, Cassidy and Gormley have pursued policies she said reduced federal support for housing.

In his written and spoken testimony, Cassidy, who currently serves as Principal Deputy Assistant Secretary for Housing, said his long experience working in housing gives him a strong appreciation for the role FHA plays in the housing market. He said his top priority as Commissioner would be to streamline and modernize FHA programs to make them more effective. Cassidy noted, under his leadership, FHA had already rescinded 12 policies he characterized as duplicative and/or overly burdensome. Gormley professed his support for Ginnie Mae’s mission and cited his previous experience at HUD and in the private sector.

Housing Subcommittee Chair Tina Smith (D-MN) questioned Cassidy about FHA’s recent decision to lay off most of the staff working on HUD’s Housing Counseling program, asking how FHA can expect the program to operate without any staff. Cassidy acknowledged housing counseling is a valuable service for working families but suggested it would be better administered at the local level. Senators Chris Van Hollen (D-MD) and Catherine Cortez Masto (D-NV) also expressed concerns about HUD staff reductions. Senator Jack Reed (D-RI) asked Cassidy about the need for reforms to the Section 221(d)(4) multifamily housing loan insurance program. Cassidy agreed with Reed that the program is a valuable one and said he hopes to make changes to make the program more usable.

NCSHA issued statements in support of Cassidy’s and Gormley’s nominations earlier this week, citing each nominee’s deep experience and expertise on housing issues. It is not yet known when the committee will vote on the nominees. The committee also considered the nominations of Travis Hill to serve as Chair of the Federal Deposit Insurance Corporation and Paul Hollis to serve as Director of the U.S. Mint.

Vera Institute Opens RFP for Opening Doors Initiative
The Vera Institute for Justice, a nonprofit organization focusing on the needs of people with a history of involvement in the criminal justice system, has announced an opportunity for HFAs to receive no-cost technical assistance to help develop policies and programs to expand access to housing for these individuals. The deadline to apply for the Opening Doors to Housing Technical Assistance Program is December 1. Learn more and register for an informational webinar on November 5 at 1:00 pm ET.

NCSHA in the News
Affordable Housing Finance, 10.30.25, MassHousing Breaks New Ground with Momentum Fund
Citybiz, 10.26.25, Virginia Housing CEO Tammy Neale Elected to National Council of State Housing Agencies Board of Directors
Yield Pro, 10.24.25, MassHousing Receives National Housing Award for Excellence from the National Council of State Housing Agencies
KRON4, 10.24.25, Virginia Housing CEO Elected to National Council of State Housing Agencies Board of Directors

Looking Ahead

Legislative and Regulatory Activities

• November 3 | Comments Due | FHFA Proposed Affordable Housing Goals for 2026–28
• November 5 | Comments Due | FHFA Proposed Strategic Plan for 2026–30

NCSHA, State HFA, and Industry Events

• November 5, 1:00 pm ET | Vera Institute of Justice | Webinar: Opening Doors Technical Assistance RFP
• November 5 | NAAHL/CAHL 2025 Policy and Practice Conference | Washington, DC
  Stockton Williams will speak at this event.
• November 6 | U.S. Chamber of Commerce Housing Summit | Washington, DC
  Stockton Williams will speak at this event.
• November 12 – 13 | 2025 WHEDA Conference | Madison, WI
  Jennifer Schwartz will speak at this event.
• November 17 – 19 | AHF Live | Chicago, IL
  Jennifer Schwartz will speak at this event.
• December 2 | National Women’s Affordable Housing Network Quarterly Policy Update | Virtual
  Jennifer Schwartz will speak at this event.
• December 5 | Early-Bird Registration Deadline: NCSHA’s HFA Institute 2026 | Washington, DC
• December 5 | Application Deadline | Vera Institute of Justice RFP: Opening Doors Technical Assistance
• December 16 | Housing Supply 2025: Market & Policy Achievements & 2026 Opportunities | Virtual
• January 11 – 16 | NCSHA’s HFA Institute 2026 | Washington, DC