I 

109TH CONGRESS 

1ST SESSION H. R. 3266 

To condition the receipt of Federal housing funds by a State or political 

subdivision of a State, or any agency or office thereof, on the preparation 

of an economic housing impact analysis regarding any new rule proposed 

by the State, political subdivision, agency, or office that has a significant 

adverse economic impact on housing construction costs or housing affordability of $50,000,000 or more, and for other other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 13, 2005 

Mr. ANDREWS introduced the following bill; which was referred to the 

Committee on Financial Services 

A BILL 

To condition the receipt of Federal housing funds by a State 

or political subdivision of a State, or any agency or 

office thereof, on the preparation of an economic housing 

impact analysis regarding any new rule proposed by the 

State, political subdivision, agency, or office that has 

a significant adverse economic impact on housing construction costs or housing affordability of $50,000,000 

or more, and for other other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 
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1 SECTION 1. CONDITION ON FEDERAL FUNDING. 

2 (a) IN GENERAL.—No Federal housing funds may be 

3 provided to a State or a political subdivision of a State, 

4 or to any agency or office thereof, unless the Secretary 

5 of Housing and Urban Development determines that the 

6 State has in effect a State law that— 

7 (1) requires the preparation of an economic 

8 analysis of any housing rule change proposed by the 

9 State, political subdivision, agency, or office that 

10 may have a significant adverse impact on housing 

11 construction costs or housing affordability; and 

12 (2) satisfies the requirements of section 2 with 

13 respect to the contents of such analysis. 

14 (b) EFFECTIVE DATE.—The condition imposed by 

15 subsection (a) shall take effect one year after the date of 

16 enactment of this Act. 

17 SEC. 2. PROPOSED RULE AND ECONOMIC HOUSING IMPACT 

18 ANALYSIS. 

19 (a) APPLICABILITY.—The requirements of this sec20 tion shall apply with respect to any proposed or final rule, 

21 unless the State or political subdivision of a State, or any 

22 agency or office thereof, promulgating the rule certifies 

23 that the proposed or final rule will not, if given force or 

24 effect as a final rule, have a significant adverse impact 

25 on housing construction cost or housing affordability. 
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1 (b) CERTIFICATION.—Any State or political subdivi2 sion of a State, or any agency or office thereof, making 

3 a certification under subsection (a), shall submit to the 

4 Secretary a copy of such certification and a statement pro5 viding the factual basis for such certification. 

6 (c) PUBLIC DISCLOSURE.— 

7 (1) NOTICE AND COMMENT PERIOD FOR PRO8 POSED RULE REQUIRED.— 

9 (A) IN GENERAL.—Whenever any State or 

10 political subdivision of a State, or any agency or 

11 office thereof, proposes a rule that will have a 

12 significant impact on housing construction costs 

13 or housing affordability, the State, political sub14 division, agency, or office shall make a public 

15 announcement of the proposed rule that— 

16 (i) states with particularity the text of 

17 the proposed rule; and 

18 (ii) requests any interested persons to 

19 submit to the State, political subdivision, 

20 agency, or office any written analyses, 

21 data, view, or arguments, along with any 

22 specific alternatives to the proposed rule. 

23 (B) TIMING.—The State, political subdivi24 sion, agency, office shall provide reasonable 

25 time and opportunity for interested persons to 
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1 take the actions specified under subparagraph 

2 (A)(ii) before promulgation of the proposed 

3 rule. 

4 (2) NOTICE AND COMMENT PERIOD FOR ECO5 NOMIC HOUSING IMPACT ANALYSIS REQUIRED.— 

6 Whenever any State or political subdivision of a 

7 State, or any agency or office thereof, proposes a 

8 rule that will have a significant adverse impact on 

9 housing construction costs or housing affordability, 

10 the State, political subdivision, agency, or office shall 

11 prepare and make available to the public for com12 ment a copy of the economic housing impact analysis 

13 in accordance with subsection (d). 

14 (d) ECONOMIC HOUSING IMPACT ANALYSIS.— 

15 (1) REQUIREMENTS.—Each economic housing 

16 impact analysis shall— 

17 (A) describe the impact of the proposed 

18 rule on housing construction costs or housing 

19 affordability; and 

20 (B) be made available to the public for 

21 comment at the same time as, and together 

22 with, the public announcement of the proposed 

23 rule. 

24 (2) TRANSMITTAL TO SECRETARY.—Any State, 

25 political subdivision, agency, or office that prepares 
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1 an economic housing impact analysis shall transmit 

2 to the Secretary such analysis. 

3 (3) CONTENTS.—Each economic housing im4 pact analysis required under this subsection shall 

5 contain— 

6 (A) a description of the reasons why action 

7 by the State, political subdivision, agency, or of8 fice is being considered; 

9 (B) a succinct statement of the objectives 

10 of, and legal basis for, the proposed rule; 

11 (C) a summary of the significant issues, 

12 analyses, and any alternatives to the proposed 

13 rule, a summary of the assessment of the State, 

14 political subdivision, agency, or office of such 

15 issues, analyses, and alternatives; 

16 (D) a description of and, where prac17 ticable, an estimate of the extent to which the 

18 proposed rule will impact housing construction 

19 costs or housing affordability, or an explanation 

20 of why no such estimate is available; and 

21 (E) an identification, to the extent prac22 ticable, of all relevant Federal or State rules 

23 which may duplicate, overlap, or conflict with 

24 the proposed rule. 
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1 (e) PREPARATION OF ANALYSES.—In complying with 

2 the provisions of subsection (d), the State, political sub3 division, agency, or office may provide either a quantifi4 able or numerical description of the effects of a proposed 

5 rule or alternatives to the proposed rule, or more general 

6 descriptive statements if quantification is not practicable 

7 or reliable. 

8 (f) DEVELOPMENT OF MODEL.—Not later than six 

9 months from the date of the enactment of this Act, the 

10 Secretary shall develop a model economic housing impact 

11 analysis under this section and shall publish such model 

12 in the Federal Register. The model analyses shall define 

13 the primary elements of an economic housing impact anal14 ysis to instruct the States or political subdivisions of the 

15 States, or any agencies or offices thereof, on how to carry 

16 out and develop the analyses required under subsection 

17 (d). 

18 SEC. 3. DEFINITIONS. 

19 In this Act: 

20 (1) FEDERAL HOUSING FUNDS.—The term 

21 ‘‘Federal housing funds’’ means funds provided 

22 under any program administered by the Secretary of 

23 Housing and Urban Development that provides 

24 housing assistance to any State or political subdivi-
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1 sion of a State, or to any agency or office thereof, 

2 including any public housing agency. 

3 (2) SECRETARY.—The term ‘‘Secretary’’ means 

4 the Secretary of Housing and Urban Development. 

5 (3) SIGNIFICANT ADVERSE IMPACT.—The term 

6 ‘‘significant adverse impact’’, with respect to a rule, 

7 means that the rule, if given force or effect as a 

8 final rule, will increase housing construction costs or 

9 housing affordability for consumers by more than 

10 $50,000,000 per year. 

11 (4) STATE.—The term ‘‘State’’ means any 

12 State of the United States, the District of Columbia, 

13 the Commonwealth of Puerto Rico, and any other 

14 commonwealth, possession, or territory of the United 

15 States. 

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