Made in America law is causing problems for affordable housing developers

Key Points:

• The Build America, Buy America (BABA) Act requires affordable housing projects funded by federal dollars to use American-made materials, but many products traditionally imported are unavailable domestically, causing delays and increased costs.
• Developers face a slow waiver approval process from the Department of Housing and Urban Development (HUD), which has limited staff and has approved only a few waivers, leading to construction standstills amid a housing crisis.
• Industry experts and developers agree the waiver process is cumbersome and lacks clear guidance, with HUD taking six months or more to approve waivers, while HUD has not provided detailed solutions or transparency on delays.
• Supporters of BABA emphasize the importance of funding American manufacturing and believe suppliers will adapt, but affordable housing advocates argue the law was implemented without assessing domestic manufacturing capacity, causing significant practical challenges.
• Some developers are seeking to avoid federal funding or build smaller projects to bypass BABA requirements, but federal funds often remain crucial for affordable housing viability, especially in rural areas where American-made materials are scarce.