Build America rule delays projects
New Build America, Buy America mandates are slowing affordable-housing work and adding administrative burden—causing material sourcing delays and higher costs for developers. That regulatory squeeze is producing schedule risk and added complexity for HR teams hiring for federally funded projects. (kunc.org)
HUD ended its phased-implementation waivers for BABA on Aug. 23, 2024, bringing HUD-funded projects fully under Buy America preference rules. (nahro.org ) HUD’s waiver pipeline has approved only a handful of projects and developers report project-specific waivers are at a near standstill, with applications taking months to resolve. (abcnews.com ) Nonprofit developer Beyond Shelter postponed lumber orders on a 36-unit project while it seeks a waiver and reported it cannot find required ceiling fans made in the U.S. for that build. (kunc.org ) One Denver developer says she has spent more than $60,000 on a compliance consultant, and multiple builders report spending “hundreds of hours” tracing domestic content across suppliers. (newsbreak.com ) The rule’s implementation timeline tightened earlier mandates: final assembly in the U.S. began Oct. 1, 2025, and a 55% U.S.-sourced component-cost threshold for manufactured products takes effect Oct. 1, 2026. (trussfaber.com ) Industry groups and housing associations have formally requested relief — PHADA joined 27 organizations in a Jan. 28, 2026, letter seeking an exemption, and the National Association of REALTORS and others are lobbying HUD and OMB for flexibility. (phada.org ) HUD Secretary Scott Turner has said the agency is “looking into” whether affordable housing should get exemptions, and the White House published a March 2026 policy note titled “Removing Regulatory Barriers to Affordable Home Construction.” (oregonlive.com ) (whitehouse.gov ) Developers warn that paused purchase orders and months-long waiver uncertainty are forcing delayed starts and scaled-back unit counts — a dynamic contractors say will compress hiring windows for site crews and property-staff roles and shift payroll timing on federally funded projects. (news4jax.com )
