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 afford-
ability 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 con-
struction costs or housing affordability of $50,000,000 
or more, and for other other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. CONDITION ON FEDERAL FUNDING. 
(a) IN GENERAL.—No Federal housing funds may be 
provided to a State or a political subdivision of a State, 
or to any agency or office thereof, unless the Secretary 
of Housing and Urban Development determines that the 
State has in effect a State law that— 
(1) requires the preparation of an economic 
analysis of any housing rule change proposed by the 
State, political subdivision, agency, or office that 
may have a significant adverse impact on housing 
construction costs or housing affordability; and 
(2) satisfies the requirements of section 2 with 
respect to the contents of such analysis. 
(b) EFFECTIVE DATE.—The condition imposed by 
subsection (a) shall take effect one year after the date of 
enactment of this Act. 
SEC. 2. PROPOSED RULE AND ECONOMIC HOUSING IMPACT 
ANALYSIS. 
(a) APPLICABILITY.—The requirements of this sec-
tion shall apply with respect to any proposed or final rule, 
unless the State or political subdivision of a State, or any 
agency or office thereof, promulgating the rule certifies 
that the proposed or final rule will not, if given force or 
effect as a final rule, have a significant adverse impact 
on housing construction cost or housing affordability.
(b) CERTIFICATION.—Any State or political subdivi-
sion of a State, or any agency or office thereof, making 
a certification under subsection (a), shall submit to the 
Secretary a copy of such certification and a statement pro-
viding the factual basis for such certification. 
(c) PUBLIC DISCLOSURE.— 
(1) NOTICE AND COMMENT PERIOD FOR PRO-
POSED RULE REQUIRED.— 
(A) IN GENERAL.—Whenever any State or 
political subdivision of a State, or any agency or 
office thereof, proposes a rule that will have a 
significant impact on housing construction costs 
or housing affordability, the State, political sub-
division, agency, or office shall make a public 
announcement of the proposed rule that— 
(i) states with particularity the text of 
the proposed rule; and 
(ii) requests any interested persons to 
submit to the State, political subdivision, 
agency, or office any written analyses, 
data, view, or arguments, along with any 
specific alternatives to the proposed rule. 
(B) TIMING.—The State, political subdivi-
sion, agency, office shall provide reasonable 
time and opportunity for interested persons to
take the actions specified under subparagraph 
(A)(ii) before promulgation of the proposed 
rule. 
(2) NOTICE AND COMMENT PERIOD FOR ECO-
NOMIC
HOUSING
IMPACT
ANALYSIS
REQUIRED.— 
Whenever any State or political subdivision of a 
State, or any agency or office thereof, proposes a 
rule that will have a significant adverse impact on 
housing construction costs or housing affordability, 
the State, political subdivision, agency, or office shall 
prepare and make available to the public for com-
ment a copy of the economic housing impact analysis 
in accordance with subsection (d). 
(d) ECONOMIC HOUSING IMPACT ANALYSIS.— 
(1) REQUIREMENTS.—Each economic housing 
impact analysis shall— 
(A) describe the impact of the proposed 
rule on housing construction costs or housing 
affordability; and 
(B) be made available to the public for 
comment at the same time as, and together 
with, the public announcement of the proposed 
rule. 
(2) TRANSMITTAL TO SECRETARY.—Any State, 
political subdivision, agency, or office that prepares
an economic housing impact analysis shall transmit 
to the Secretary such analysis. 
(3) CONTENTS.—Each economic housing im-
pact analysis required under this subsection shall 
contain— 
(A) a description of the reasons why action 
by the State, political subdivision, agency, or of-
fice is being considered; 
(B) a succinct statement of the objectives 
of, and legal basis for, the proposed rule; 
(C) a summary of the significant issues, 
analyses, and any alternatives to the proposed 
rule, a summary of the assessment of the State, 
political subdivision, agency, or office of such 
issues, analyses, and alternatives; 
(D) a description of and, where prac-
ticable, an estimate of the extent to which the 
proposed rule will impact housing construction 
costs or housing affordability, or an explanation 
of why no such estimate is available; and 
(E) an identification, to the extent prac-
ticable, of all relevant Federal or State rules 
which may duplicate, overlap, or conflict with 
the proposed rule.
(e) PREPARATION OF ANALYSES.—In complying with 
the provisions of subsection (d), the State, political sub-
division, agency, or office may provide either a quantifi-
able or numerical description of the effects of a proposed 
rule or alternatives to the proposed rule, or more general 
descriptive statements if quantification is not practicable 
or reliable. 
(f) DEVELOPMENT OF MODEL.—Not later than six 
months from the date of the enactment of this Act, the 
Secretary shall develop a model economic housing impact 
analysis under this section and shall publish such model 
in the Federal Register. The model analyses shall define 
the primary elements of an economic housing impact anal-
ysis to instruct the States or political subdivisions of the 
States, or any agencies or offices thereof, on how to carry 
out and develop the analyses required under subsection 
(d). 
SEC. 3. DEFINITIONS. 
In this Act: 
(1) FEDERAL
HOUSING
FUNDS.—The term 
‘‘Federal housing funds’’ means funds provided 
under any program administered by the Secretary of 
Housing and Urban Development that provides 
housing assistance to any State or political subdivi-
sion of a State, or to any agency or office thereof, 
including any public housing agency. 
(2) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Housing and Urban Development. 
(3) SIGNIFICANT ADVERSE IMPACT.—The term 
‘‘significant adverse impact’’, with respect to a rule, 
means that the rule, if given force or effect as a 
final rule, will increase housing construction costs or 
housing affordability for consumers by more than 
$50,000,000 per year. 
(4) STATE.—The term ‘‘State’’ means any 
State of the United States, the District of Columbia, 
the Commonwealth of Puerto Rico, and any other 
commonwealth, possession, or territory of the United 
States. 
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