2026-13939Proposed RuleSignificantWallet

HUD Moves to Undo Its Own 2024 Flood Protection Rules

Published Date: 7/10/2026

Proposed Rule

Summary

HUD is rolling back its 2024 floodplain and wetland protection rules to how things were before, thanks to a new executive order. This change affects builders, developers, and communities by easing some flood risk rules but keeping helpful flexibilities. Comments on this proposal are open until September 8, 2026, so now’s the time to weigh in!

Analyzed Economic Effects

4 provisions identified: 4 benefits, 0 costs, 0 mixed.

Rescind 2024 Floodplain Rule

HUD proposes to roll back most of its April 23, 2024 floodplain and wetland protections and to restore the prior process for defining regulatory floodplains. HUD says rescission would save an estimated $4.5 million to $85 million in annual construction costs (net present value of $32 million to $597 million over ten years) and could help spur housing development and avoid passing added costs onto potential homebuyers, including low-to-moderate income buyers using FHA-backed mortgages.

Elevation Waiver Made Regulatory

HUD proposes to incorporate into regulation its partial waiver that removed the two-foot elevation requirement for insured one- to four-unit housing and reverted to requiring the lowest floor be constructed above the Base Flood Elevation. HUD issued that one-year partial waiver on February 20, 2025 and extended it on February 20, 2026; this proposed rule would fold those waiver determinations into the regulations.

Minor Rehab Categorical Exclusion Kept

The proposal would keep the 2024 revision that treats minor rehabilitation of one- to four-unit residential properties as a categorical exclusion when HUD performs the review, and would remove the prior restriction that the structure's footprint could not be increased in a floodplain or wetland. That means some minor rehabilitations with increased footprint would not require an environmental assessment or environmental impact statement when HUD does the review.

Certification: No Big Small-Biz Impact

HUD certifies under the Regulatory Flexibility Act (5 U.S.C. 605(b)) that this proposed rule will not have a significant economic impact on a substantial number of small entities because it reduces regulatory requirements rather than imposing new obligations. HUD therefore states the rule will not significantly affect small businesses.

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Key Dates

Published Date
Comments Due
7/10/2026
9/8/2026

Department and Agencies

Department
Independent Agency
Agency
Housing and Urban Development Department
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