Responsible for the deacetylation of lysine residues on the N-terminal part of the core histones (H2A, H2B, H3 and H4). Histone deacetylation gives a tag for epigenetic repression and plays an important role in transcriptional regulation, cell cycle progression and developmental events. Histone deacetylases act via the formation of large multiprotein complexes. Deacetylates the YNG2 subunit of NuA4 histone acetyltransferase (HAT) module, leading to the reduction of YNG2 and NuA4 HAT at the promoters of hypha-specific genes. Plays a key role in the regulation of filamentous growth and virulence. Involved in the switch between two heritable states, the white and opaque states. These two cell types differ in many characteristics, including cell structure, mating competence, and virulence. Each state is heritable for many generations, and switching between states occurs stochastically at low frequency. H2O + N(6)-acetyl-L-lysyl-[histone] = acetate + L-lysyl-[histone] Interacts with BRG1. Recruited to promoters of hypha-specific genes by BRG1 in a rapamycin-dependent manner. Belongs to the histone deacetylase family. HD type 2 subfamily.