Update: On February 21, 2023, the Notice was published in the Federal Register.
On February 15, 2023, HUD published on its website a new waiver delaying the implementation of Build America, Buy America Act (BABAA) requirements for most HUD programs until 2024. The waiver covers funding used for maintenance projects related to Public Housing, the HOME program, or the Housing Trust Fund through August 23, 2024, and funding used for non-maintenance projects for these programs through February 22, 2024. The waiver does not cover funding from CDBG, Choice Neighborhoods, Lead Hazard Reduction, and Healthy Homes Production Grants for iron and steel purchases.
According to information from the National Association of Housing and Redevelopment Officials (NAHRO), HUD’s current BABAA implementation waiver will expire next week, and this new waiver will not go into effect until the public comment period ends on March 2. This means there will be a gap between the end of the current waiver and the effective date for this new waiver. HUD informed NAHRO that the Department will not allocate funding to agencies during this gap to ensure funds do not fall under BABAA requirements.
HUD is currently in the process of putting together additional BABAA guidance.