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Department of Housing and Urban Development Policy for Considering Potential Impacts of HUD Rules on Small Entities

Section 1 -- Background

On August 13, 2002, President George W. Bush issued Executive Order 13272, entitled "Proper Consideration of Small Entities in Agency Rulemaking." The Executive Order was published in the Federal Register on August 16, 2002 (67 FR 53461). The Order requires that each agency establish procedures and policies to promote compliance with the Regulatory Flexibility Act, as amended (5 U.S.C. 601 et seq.).

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Section 2 -- Purpose

This document implements Executive Order 13272 by describing HUD's policies and procedures, consistent with the Regulatory Flexibility Act, to ensure that the potential impacts of its draft rules on small businesses, small governmental jurisdictions, and small organizations are properly considered during the rulemaking process.

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Section 3 -- Definitions

As used throughout this document, the terms "agency," "rule," "small business," "small entity," "small organization," and "small governmental jurisdiction" shall have the same meaning as provided in section 601 of the Regulatory Flexibility Act. (Please note that the term "small entity" is the collective term for small businesses, small organizations, and small governmental jurisdictions.)

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Section 4 -- General Policy

It is HUD's policy to thoroughly review its draft rules to assess and take appropriate account of the potential impact on small businesses, small governmental jurisdictions, and small organizations, as required by the Regulatory Flexibility Act. HUD's two principal methods for accomplishing these goals are through the review and analysis of all draft HUD rules by its Regulatory Flexibility Officer, and the undertaking of outreach efforts to solicit the views of small entities in the development of HUD rules.

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Section 5 -- Regulatory Flexibility Officer

HUD's Regulatory Flexibility Officer is the Departmental official with primary responsibility for overseeing HUD's compliance with this policy. The Director of the Office of Small and Disadvantaged Business Utilization is designated as HUD's Regulatory Flexibility Officer. The HUD program offices will endeavor to notify the Regulatory Flexibility Officer as early as possible in the rulemaking process of any proposed regulatory actions that might have a significant economic impact on a substantial number of small entities, and to work with the Regulatory Flexibility Officer in assessing the potential impact.

The duties of the Regulatory Flexibility Officer will include, but not be limited to:

  1. Serving as HUD's principal liaison with the Chief Counsel for Advocacy of the Small Business Administration (Advocacy), and, in accordance with section 3(b) of Executive Order 13272, notifying Advocacy of any draft HUD rules that may have a significant economic impact on a substantial number of small entities under the Regulatory Flexibility Act;
     
  2. Reviewing the Spring and Fall Semiannual Agenda of Regulations prior to publication in the Federal Register pursuant to section 602 of the Regulatory Flexibility Act in order to identify new rules that appear to have potential impacts on small entities as early as possible in the rulemaking process and to assist the HUD program offices in addressing any comments provided by Advocacy on the Regulatory Agenda;
     
  3. Reviewing all draft HUD rules during the Departmental clearance process to ensure compliance with the requirements of the Regulatory Flexibility Act and the HUD program office issuing the rule to assess the potential impacts of the draft regulatory action on small entities;
     
  4. Working with the HUD program office issuing the rule to give proper consideration to any comments provided by Advocacy regarding the draft rule, and to develop written responses to the Advocacy comments, as required by section 3(c) of Executive Order 13272;
     
  5. Working with the HUD program office issuing the rule and with the Office of Economic Analysis of HUD's Office of Policy Development and Research to prepare the certification analysis required under section 605 of the Regulatory Flexibility Act;
     
  6. When a rule is determined to have a significant economic impact on a substantial number of small entities, overseeing the preparation of the initial and final regulatory flexibility analyses required by the Regulatory Flexibility Act;
     
  7. Overseeing HUD's periodic review of rules with a significant economic impact on a substantial number of small entities, in accordance with section 610 of the Regulatory Flexibility Act; and
     
  8. Developing such additional guidance for the HUD program offices and/or the public, as may be necessary, for HUD's successful implementation of the Regulatory Flexibility Act and Executive Order 13272.

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Section 6 -- Outreach Efforts to Small Entities

Consistent with section 609 of the Regulatory Flexibility Act, HUD shall undertake outreach efforts to ensure that the views of small businesses, small governmental jurisdictions, and small organizations are considered in the development of HUD rules with potential impacts on small entities These outreach efforts may include, but are not limited to:

  1. Specific invitations to small entities, included in the preamble of the rule, to submit comments on the proposed rule;
     
  2. Direct notification of interested small entities concerning publication of the rule;
     
  3. The conduct of public forums concerning the rule at which small entities are invited to participate;
     
  4. Meeting with appropriate representatives of small entities; and
     
  5. Forming a Federal Advisory Committee that consists of representatives of small entities to assist HUD in its development of a rule through the advisory committee process (including the use of negotiated rulemaking procedures in accordance with the requirements of the Negotiated Rulemaking Act of 1990 (5 U.S.C. 561-570)), consistent with all statutory and other legal prerequisites for the establishment of such a committee.

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Section 7 -- For Further Information Contact

Questions regarding this document should be directed to Karen A. Newton Cole, Director of Office Small Business Utilization, U.S. Department of Housing and Urban Development, 451 Seventh Street, SW, Room 10156, Washington, DC 20410; telephone (202) 708-1428, (this is not a toll-free number). Persons with speech or hearing impairments may access this number via TTY by calling the toll-free Federal Information Relay Service at 1-800-877-8339.

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Section 8 -- Effective Date

This policy is effective on February 13, 2003.