Impact: Proposed Rule on Section 3

Yves Sopngwi Djoko
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 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 views expressed in this article are those of the authors and do not represent the official positions or policies of the Office of Policy Development and Research, the U.S. Department of Housing and Urban Development, or the U.S. government.

The mission of Section 3 of the Housing and Urban Development Act of 1968 is to use existing federal funding streams for low-income housing and community development to maximize economic opportunities to low-income individuals. This article assesses the benefits and costs of a proposed rule to update the Act’s Section 3 regulations.