Thousands of Affordable Homes Stuck in Limbo as U.S. “Buy America” Rules Stall Construction

BIDDEFORD, Maine — More than 6,000 affordable housing units across the United States remain unfinished, trapped in a bureaucratic bottleneck caused by federal “Buy America” rules that require nearly all construction materials to be manufactured domestically, according to official project data and developer testimonies verified by the Associated Press. The delays, which have added hundreds of thousands of dollars in costs per project, come as the nation grapples with a severe shortage of low-income housing—leaving thousands of families in limbo as rents continue to rise.

The Build America, Buy America Act (BABAA), signed into law in 2021 as part of the $1.2 trillion Infrastructure Investment and Jobs Act, was designed to bolster American manufacturing by mandating that federally funded infrastructure projects—including affordable housing—use domestically produced materials. While the policy has succeeded in reviving some domestic supply chains, it has also created unintended consequences for housing developers, who say many essential components—from HVAC systems to lighting fixtures—are simply not available from U.S. Manufacturers at competitive prices.

“They need to be treating this like the fire that It’s,” said Tyler Norod, president of Westbrook Development Corporation, a Maine-based affordable housing developer. Norod’s latest project in Biddeford, a 72-unit complex for low-income seniors, has been delayed for nearly eight months while his team navigates the waiver process. “Every day this drags on, we’re losing money, and families are losing the chance at a stable home.”

The Waiver Backlog: A System Overwhelmed

Under BABAA, developers can apply for waivers if domestically produced materials are unavailable, unaffordable, or would cause “unreasonable delays.” However, the Department of Housing and Urban Development (HUD), which oversees the waiver process, has been criticized for its slow response. A March 2026 HUD report revealed that only 12% of waiver applications had been processed since the law’s implementation, with the average review taking 147 days—far longer than the 30-day target set by the agency.

The delays stem partly from staffing shortages at HUD, which saw its workforce reduced by 13% during the Trump administration and has struggled to rebuild capacity. “We’re doing everything we can with the resources we have,” a HUD spokesperson told the AP, noting that the agency has hired 45 additional staff members to handle waiver requests since January 2026. However, developers say the backlog has only worsened, with some projects now facing indefinite holds.

In Maine alone, state housing officials estimate that 435 units—enough to house roughly 1,000 people—are stalled due to BABAA-related delays. Nationwide, the National Low Income Housing Coalition (NLIHC) projects that the backlog could exceed 6,000 units by the end of 2026 if the waiver process is not streamlined. “This is not just a bureaucratic headache—it’s a humanitarian crisis,” said NLIHC President Diane Yentel. “Every month these projects are delayed, more families are pushed into homelessness.”

Domestic Supply Chains: The Missing Link

The root of the problem lies in the lack of domestic manufacturing capacity for many construction materials. While the U.S. Has robust production of steel, lumber, and concrete, other critical components—such as electrical wiring, plumbing fixtures, and energy-efficient windows—are often imported from countries with lower labor costs, including Mexico, China, and Germany. For example:

• HVAC systems: Roughly 70% of residential HVAC units installed in the U.S. Are manufactured overseas, according to the Air-Conditioning, Heating, and Refrigeration Institute. Domestic alternatives exist but can cost up to 40% more.
• Lighting fixtures: The U.S. Produces only about 35% of the LED lighting used in residential construction, with the remainder imported from Asia, per Department of Energy data.
• Plumbing components: Many affordable housing projects rely on imported faucets, showerheads, and pipes to meet water-efficiency standards, as domestic manufacturers have struggled to scale production.

“We’re not talking about luxury finishes here—these are basic, code-compliant materials that maintain homes safe and functional,” said Norod. “If we can’t source them domestically, we either have to delay the project or pay a premium that eats into our already thin margins.”

The Biden administration has acknowledged the challenges, with White House officials announcing in April 2026 a series of “flexibility measures” to expedite waivers for affordable housing projects. These include:

• A dedicated HUD task force to prioritize waiver requests for projects with 50+ units.
• A 60-day “fast-track” review for materials deemed “critical” to project completion.
• Expanded use of “categorical waivers” for materials with no domestic equivalent, such as certain energy-efficient appliances.

However, critics argue the measures don’t move far enough. “A 60-day review is still two months of lost time,” said David Dworkin, president of the National Housing Conference. “We need a blanket waiver for affordable housing until domestic supply chains can catch up.”

The Human Cost: Families Left in the Lurch

The delays are having a tangible impact on communities already stretched thin by rising rents and limited housing stock. In Portland, Oregon, a 120-unit complex for formerly homeless veterans has been stalled since November 2025 after the developer was unable to source domestically made elevators. The project, which received $12 million in federal funding, is now $800,000 over budget due to extended loan interest and storage fees for undelivered materials.

“We had families ready to move in by summer 2026,” said Sarah Chen, the project’s developer. “Now, we’re looking at spring 2027 at the earliest. In the meantime, these veterans are staying in shelters or on the streets.”

The crisis is particularly acute in rural areas, where affordable housing is already scarce. In Biddeford, Maine, Norod’s 72-unit senior housing project was slated to open in September 2026 but is now facing a 10-month delay. “We have 200 seniors on the waitlist,” Norod said. “Some of them are living in motels because they can’t uncover affordable apartments. This isn’t just a policy issue—it’s a moral one.”

Congressional Pressure and Potential Solutions

The issue has drawn bipartisan attention in Congress, with lawmakers from both parties expressing frustration over the delays. In March 2026, the House Financial Services Committee held a hearing titled “Build America, Buy America: Unintended Consequences for Affordable Housing.” During the hearing, Rep. Maxine Waters (D-CA) called the waiver backlog “unacceptable,” while Rep. Patrick McHenry (R-NC) argued that the law’s implementation had been “botched from the start.”

Several legislative fixes have been proposed, including:

• The Affordable Housing Expedited Waiver Act: Introduced in February 2026, this bill would require HUD to process waivers for affordable housing projects within 30 days or automatically approve them. It has garnered support from 45 House members but has yet to advance to a vote.
• BABAA Exemption for Affordable Housing: A more sweeping proposal would exempt all federally funded affordable housing projects from BABAA requirements until domestic supply chains can meet demand. Critics argue this could undermine the law’s goal of boosting American manufacturing.
• Tax Incentives for Domestic Manufacturers: Some lawmakers have suggested offering tax breaks to U.S. Companies that produce materials currently imported, such as electrical wiring and plumbing fixtures. However, industry experts warn this could grab years to scale.

In the absence of congressional action, some states have taken matters into their own hands. California, which has the nation’s largest homeless population, announced in April 2026 that it would cover the cost difference for developers forced to use domestic materials under BABAA. The program, funded by a $50 million state allocation, aims to keep 1,200 units on track for completion in 2026.

What Happens Next?

For now, developers are left in a holding pattern, waiting for waivers or hoping for legislative relief. HUD has pledged to clear the backlog by the end of 2026, but housing advocates remain skeptical. “We’ve heard promises before,” said Yentel of the NLIHC. “What we need is action.”

The next major checkpoint comes in June 2026, when the House Financial Services Committee is expected to vote on the Affordable Housing Expedited Waiver Act. If passed, the bill could provide much-needed relief for stalled projects—but even its supporters acknowledge it’s only a temporary fix for a systemic problem.

For families like those on Norod’s waitlist in Maine, the stakes couldn’t be higher. “We’re not asking for special treatment,” Norod said. “We’re just asking for a system that works. Right now, it’s broken.”

Key Takeaways

• 6,000+ units stalled: Over 6,000 affordable housing units are delayed nationwide due to BABAA requirements, with costs rising by hundreds of thousands per project.
• Waiver backlog: HUD has processed only 12% of waiver applications, with the average review taking nearly five months—far longer than the 30-day target.
• Domestic supply gaps: Many essential materials, including HVAC systems and lighting fixtures, are not produced domestically at competitive prices, forcing developers to seek waivers or pay premiums.
• Human impact: Delays are pushing families into homelessness, with veterans, seniors, and low-income renters among the hardest hit.
• Legislative fixes: Congress is considering bills to expedite waivers or exempt affordable housing from BABAA, but no solution has gained traction yet.

FAQ

What is the Build America, Buy America Act?

The Build America, Buy America Act (BABAA) is a 2021 law that requires federally funded infrastructure projects—including affordable housing—to use domestically produced materials. The goal is to boost American manufacturing, but critics say it has created delays and cost overruns for housing developers.

Why are affordable housing projects being delayed?

Many construction materials, such as HVAC systems, lighting fixtures, and plumbing components, are not available from U.S. Manufacturers at competitive prices. Developers must either apply for waivers (which are backlogged) or pay significantly more for domestic alternatives, leading to project delays.

How many units are affected?

The National Low Income Housing Coalition estimates that more than 6,000 affordable housing units are currently stalled due to BABAA-related delays, with the number expected to grow if the waiver process isn’t streamlined.

What is the government doing to fix the problem?

The Biden administration has introduced measures to expedite waivers for affordable housing, including a 60-day “fast-track” review for critical materials. Congress is also considering bills to speed up the waiver process or exempt affordable housing from BABAA requirements.

How can I check the status of a stalled project?

HUD maintains a public dashboard tracking waiver applications. For state-specific projects, check with your local housing authority or developer.

Have you or someone you know been affected by affordable housing delays? Share your story in the comments below or on social media using #HousingCrisis.