The Proposed Affirmatively Furthering Fair Housing Regulatory Impact Analysis

Raphael Bostic
University of Southern California

Alastair McFarlane
U.S. Department of Housing and Urban Development

Impact
A regulatory impact analysis must accompany every economically significant federal rule or regulation. The Office of Policy Development and Research performs this analysis for all U.S. Department of Housing and Urban Development rules. An impact analysis is a forecast of the annual benefits and costs accruing to all parties, including the tax-payers, from a given regulation. Modeling these benefits and costs involves use of past research findings, application of economic principles, empirical investigation, and professional judgment.

The Fair Housing Act prohibits discrimination and directs the U.S. Department of Housing and Urban Development (HUD) to promote steps to overcome historic patterns of segregation, fair housing choice, and inclusive communities. The proposed Affirmatively Furthering Fair Housing (AFFH) rule would help address the legacy of segregation and locational choice factors influenced by race, color, religion, sex, familial status, national origin, disability, and other protected classes, that typically do not rise to the level of discriminatory actions that violate other sections of the Fair Housing Act.