Economic Analysis of Increasing HUD's Manufactured Housing Inspection Label Fee

Michael K. Hollar
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 taxpayers, 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 U.S. Department of Housing and Urban Development’s (HUD’s) Office of Manufactured Housing Programs enforces construction and safety standards for all transportable sections of manufactured homes. To fund enforcement activities, HUD collects $39 per section sold. This amount provided sufficient revenue to fully fund program operations until fiscal year 2014. This article describes HUD’s proposal to increase this fee to $100 per section based on expected manufactured housing production and program costs.