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HUD Publishes Proposed Waiver for Build America, Buy America (BABA)

On February 15, HUD published a proposed waiver for Build America, Buy America (BABA) provisions. Under the proposed waiver, federal financial assistance for many HUD programs will not be subject to BABA until at least February 22, 2024 (see table below). 

Members should note that HUD’s current BABA waiver will expire on February 22, 2023, and the proposed waiver will not take effect until at least March 2, 2023. Any HUD funding obligated between the expiration of the current waiver and the implementation of the new waiver would be subject to BABA. However, the Department has indicated that it will not obligate funding during this time to avoid HAs being subject to BABA provisions.

PHADA appreciates HUD’s efforts to give HAs additional time to comply with BABA provisions. In conversations with HUD staff, PHADA has consistently emphasized the need to delay BABA implementation so that HAs can continue to focus on their core efforts to house low-income families.

PHADA also provided formal comments in July 2022 to HUD regarding the negative impacts that BABA will have on HA operations.

HUD is seeking comments on the proposed waiver through March 2, 2023, and interested parties may submit comments at regulations.gov. PHADA will be sure to keep members up to date on the Department’s BABA implementation as it progresses. HUD’s BABA resource page also includes additional information.

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