Projects that receive certain federal funds are required to source 95% of their materials from the United States.
Maine affordable housing developers say their projects are being stymied by the federal Buy America requirement, which was created by former President Biden in 2021 but just went into effect.
According to an article by Hannah LaClaire in Portland Press Herald, “Developers say the rule was created with a noble aim, but in practice, it has brought the affordable housing industry to its knees.” Ten fully permitted projects amounting to 400 affordable housing units are on hold, LaClaire adds.
Developers say that many of the products they need to build housing, such as heating, ventilation and air conditioning systems, and their components, are not available from U.S. manufacturers. They must now request a HUD waiver that can take up to six months to process.
The projects are subject to BABA requirements because they receive federal funding, LaClaire explains. “Tyler Norod, Westbrook Development Corporation’s director of development, said none of Maine’s developers have come across anyone in the country that has been able to get a BABA-funded project across the finish line.”
Read the full story: ‘Buy America’ rule killing Maine affordable housing, developers say
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