PHADA, Coalition Working to Address Problems
PHADA President John T. Mahon.
The Build America Buy America (BABA) law was enacted as part of the Infrastructure Investment and Jobs Act of 2021. BABA applies to many federally funded programs, including those under HUD’s jurisdiction. As its name implies, the law requires that certain materials used in infrastructure projects be manufactured in the United States.
PHADA has consistently noted that, while its intent is laudable, BABA has created significant challenges for housing authorities, which are committed to preserving and developing safe, affordable housing. Among other things, we have noted that without adjustments, BABA could reduce the number of homes available to families in need and slow down critical improvements to existing properties.
PHADA’s Efforts
Since its passage a few years ago, PHADA has pointed out that compliance with BABA creates increased costs and delays in modernization and construction projects, reducing the number of affordable units that can be built or rehabilitated. In addition, the time and effort required for contractors to verify compliance can lead to protracted delays and additional administrative costs.
HUD staff deserve credit for trying to develop a workable waiver process for HAs, but that process is still unworkable and administratively complex, straining HUD and local agencies alike. Some PHADA members and others have said they have waited as long as 16 months for waiver approvals. Major staff reductions at HUD and the government shutdown have exacerbated the problem. Even after Department staff go back to work, they will be focused on catching up on other priorities, resulting in longer decision times on waivers.
PHADA has expressed several other concerns about BABA. Our policy team composed a short paper that is designed for members to use in their communications with Congress and other policymakers. The two-page paper, which can be found here, points to the specific statutory and regulatory references that lawmakers should address.
Working with Others
In addition to our own advocacy, we have pooled our efforts with others who have made similar arguments. Our message is beginning to resonate throughout Washington and on Capitol Hill. Indeed, Representatives Mike Flood (R-NE) and Emanuel Cleaver (D-MO) have introduced legislation that includes several reforms to the HOME program. One provision in the bill would exempt HOME programs from BABA requirements. The fact that the legislation enjoys bipartisan sponsorship is encouraging.
To raise the volume further, PHADA has joined with many other housing advocates in correspondence to the two lawmakers, urging them to apply the exemption to all housing programs and to act on the bill during this session. The coalition consists of affordable housing developers, lenders and investors, local officials, and housers. The letter points out an exemption for housing would help address the nation’s housing shortage crisis.
Working with these other influential organizations, we will continue to make our case to Congress. You can help by using PHADA’s paper to craft a message to your own Representative and two Senators.
Conclusion
We are committed to working with Congress, HUD, and other partners to uphold BABA’s goal of supporting American manufacturing while ensuring that housing authorities continue to provide safe and decent housing to low-income families. If you have additional questions or would like more information, please feel free to contact our Washington office at: 202-546-5445. Thank you.