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The goal of Cityscape is to bring high-quality original research on housing and community development issues to scholars, government officials, and practitioners. Cityscape is open to all relevant disciplines, including architecture, consumer research, demography, economics, engineering, ethnography, finance, geography, law, planning, political science, public policy, regional science, sociology, statistics, and urban studies.

Cityscape is published three times a year by the Office of Policy Development and Research (PD&R) of the U.S. Department of Housing and Urban Development.

  • Discovering Homelessness
  • Volume 13 Number 1

Impact of the Rule on the Use of Public Housing Capital Funds for Financial Activities

Yves S. Djoko


A regulatory impact analysis must accompany every economically significant federal rule or regulation. The Office of Policy Development and Research performs this analysis for all U.S. Department of Housing and Urban Development rules. An impact analysis is a forecast of the annual benefits and costs accruing to all parties, including the taxpayers, from a given regulation. Modeling these benefits and costs involves use of past research findings, application of economic principles, empirical investigation, and professional judgment.

This article reflects the views of the authors and does not necessarily reflect the views of the U.S. Department of Housing and Urban Development.


This article assesses the benefits and costs of a rule that enables some housing authorities to pledge capital funds for debt-service payments incurred for the modernization and development of public housing (including public housing in mixed-financed developments).1 At the outset, the implementation of the rule would not affect the federal budget but, over time, would have the potential of creating substantial financial flows and transfers for housing authorities and local economies. Although it is difficult to quantify the tangible benefits to the various stakeholders, it is possible to identify and quantify most of the costs.

1 Published in the Federal Register as a final rule on October 21, 2010. 75 Fed. Reg. 203.