Economic Analysis of Major HUD Regulations

Executive Order No. 12866 requires that federal agencies promulgating regulations prepare economic analyses of regulations that have a significant economic effect. In addition, the Regulatory Flexibility Act (RFA) requires agencies to prepare regulatory flexibility analyses for regulations that have a substantial impact on a significant number of small entities. Economic and regulatory flexibility analyses are frequently combined into a single document. The intent of E.O. 12866 and the RFA is for the required analyses to inform the rulemaking process and ensure adequate public understanding of the potential effects of major regulations. Because of the high level of expertise in economics and statistical analysis required to complete these large-scale assessments, PD&R is the primary manager of the Department's regulatory analysis function. PD&R reviews all new HUD regulations for potential impact on the economy; prepares economic analyses of new HUD rules, as needed, or directs the preparation of economic analyses of new HUD rules by PD&R contractors; reviews economic analyses prepared by other offices for methodological soundness and feasibility; and advises program office officials on how proposed regulations can be altered to achieve the regulatory objective while avoiding unnecessary costs to the economy.