IAHC Signs Housing Industry Statement and Proposal on BABA
The Indiana Affordable Housing Council has signed the National Council of State Housing Agencies' statement and proposal regarding the Build America, Buy America Act (BABA). In practice, BABA is impeding — and in some cases preventing — the development of much-needed affordable housing.
Affordable housing providers operate with limited funding sources and tight financial margins. When costs increase, fewer homes can be built.
Industry organizations are urging Congress and the U.S. Department of Housing and Urban Development (HUD) to reconsider applying BABA requirements to affordable housing programs, citing guidance from the federal government that private homes are not traditionally considered “infrastructure projects.”
Developers are also reporting that some projects are becoming financially infeasible due to BABA requirements, forcing difficult decisions to either increase rents, seek limited alternative funding, or stop projects altogether.
The letter's signatories are advocating for either an exemption from BABA requirements or meaningful reforms to make compliance workable. Recommendations include:
- Temporarily suspending BABA implementation for affordable housing programs while a better process is developed
- Creating a database of BABA-compliant building materials and products
- Expanding general waivers for materials not available domestically
- Increasing flexibility through a larger de minimis waiver threshold
- Requiring HUD to review waiver requests within a reasonable timeframe