U.S. 'Build America, Buy America Act' Causes Delays in Affordable Housing Projects
2026-04-02 17:14
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en.Wedoany.com Reported - Since its signing in 2021, the U.S. 'Build America, Buy America Act' has aimed to bring manufacturing jobs back to the country, but this policy is now creating bottlenecks in affordable housing construction. According to the act, almost all materials in federally funded affordable housing projects—such as HVAC systems, lighting, sink hooks, and ceiling fans—must carry a "Made in America" label. However, developers report that many of these products have long been imported from overseas markets, making it difficult to meet this requirement. Although exemptions can be applied for, the Department of Housing and Urban Development's approval process is slow, leading to construction delays and increased costs.

Tyler Norod, President of Westbrook Development, which builds affordable housing in Maine, stated: "We've kind of resigned ourselves to the fact that we're just going to build fewer units nationwide during a housing crisis." Diana Lane, a 75-year-old from Fargo, North Dakota, who has been on an affordable housing waiting list for five years, said: "I just want a roof over my head, but it's getting harder and harder." Dan Madler, CEO of the nonprofit developer Beyond Shelter, had to delay a lumber order to verify compliance and couldn't find American-made ceiling fans for a 36-unit building, with his exemption request still pending approval.

Developers report that exemption approvals take at least six months, with some projects spending over $60,000 on consultant fees alone. Denver developer Julie Hober said her November application for an exemption covering 125 materials has not yet been approved: "If they delay any longer, we'll be at a standstill." Jennifer Schwartz, Director of Tax and Housing Advocacy at the National Council of State Housing Agencies, noted that the exemption process "has failed" because the requirements were set before assessing domestic manufacturing capacity. Nebraska Republican Congressman Mike Flood has advocated for exempting some housing funds from the act, stating, "Homeownership is the American dream, but it's out of reach." Current affordable housing projects are facing a real tension between the law's implementation and housing needs.

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