HUD has released a waiver delaying the implementation of the Build America, Buy America Act (BABA) for all HUD programs—aside from CDBG—for 90 additional days until February 15, 2023. This public interest phased implementation waiver is expected to be the final before BABA enters full effect and follows two additional public interest waivers last week. The waiver notes that fully implementing BABA for all programs simultaneously may harm HUD funding recipients’ ability to function because most have never experienced a Buy America Preference (BAP) before.
This waiver excludes Community Development Block Grant (CDBG) programs using iron or steel, so any CDBG funds obligated as of November 15, 2022 and used for that purpose are subject to the BAP. HUD explains that they wish to better implement BABA for remaining HUD programs based on lessons learned from this program.
NAHRO is pleased to see this waiver as part of HUD’s effort to ensure an effective implementation of BAP requirements. Although NAHRO is committed to prioritizing U.S. jobs and manufacturers, NAHRO remains concerned about increased costs to affordable housing development and what reporting and compliance may look like for projects that must meet the BAP.
Additional information from HUD and analysis from NAHRO will be forthcoming. Please see NAHRO Direct News, The NAHRO Monitor, and NAHRO’s Comment Letter and Correspondence page for more.
Find the public interest phased implementation waiver here. Comments on this waiver are due November 17.