Testimony Before Congress: Regulatory Process Hurts Housing Recovery

WASHINGTON—The National Association of Home Builders (NAHB) testified before Congress that the regulatory process, namely compliance with the Regulatory Flexibility Act, unnecessarily increases compliance costs and acts as a drag on the housing and economic recovery. The Regulatory Flexibility Act requires federal agencies to review regulations for their impact on small businesses and consider less burdensome alternatives, but Carl Harris, Kansas home builder, testified on behalf of the NAHB that compliance falls short of the act’s objective.

“Unfortunately, the pattern is often the same: Agencies either fail to comply with the Regulatory Flexibility Act by ignoring the statutory obligation to convene a small entity review panel or convene a panel but fail to provide the panelists sufficient information concerning the proposed rule to allow them to evaluate regulatory options or provide alternatives,” Harris said, before the House Small Business Committee’s Subcommittee on Investigations, Oversight and Regulations.

The Subcommittee heard Harris cite several specific examples where a smarter and more sensible regulatory process would benefit the housing industry. The examples included the 2008 Occupational Safety and Health Administration Cranes and Derricks Construction Rule, Stormwater Discharges and the Environmental Protection Agency’s Lead: Renovation, Repair and Painting rule.

More information about the testimony before Congress or the NAHB can be found here