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February 15, 2005

Housing Ills Blamed On NIMBY, Regulation

The Washington Post reports, "Excessive regulation and not-in-my-back-yard thinking deserve much of the blame for the nation's shortage of affordable homes, federal housing officials said yesterday. And that's a situation that hasn't changed in 14 years, since then-housing secretary Jack Kemp issued a report that was seen as a challenge to environmentalists and anti-growth advocates. In an update of that 1991 report released yesterday, officials from the Department of Housing and Urban Development said over-regulation on the local, state and federal levels increase the cost of housing by as much as 35 percent."

In The Grand Experiment in Regulatory Reporting Robert W. Hahn and Mary Beth Muething propose potential improvements to the way regulations are reviewed. The authors recommend that the Office of Management and Budget require agencies to issue a scorecard evaluating each agency regulation; that OMB summarize the strengths and weaknesses of regulations using this scorecard; that OMB include not only executive agencies, but also independent agencies in its analysis; and that Congress create an agency or office outside of the executive branch to perform a regulatory evaluation function similar to that of OMB. The authors state that while they are highly critical of some aspects of these important reports, they are guardedly optimistic about their potential to improve regulation and the regulatory process.

Also of interest from the Joint Center:

Better Path to Affordable Housing Peter H. Schuck

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