NAHRO Submits Questions about BABA to Mold HUD Guidance

In January, NAHRO submitted a letter to HUD containing questions we hope HUD will address when they release Build America, Buy America Act (BABA) guidance. NAHRO’s questions focused on three main BABA topics: questions about the guidance HUD is expected to release, questions about waivers, and questions about BABA generally.

HUD has yet to put out the guidance necessary for PHAs to comply with BABA. On this topic, NAHRO asked when members could expect guidance to be released and the scope of the guidance. Regarding timing, BABA will only apply to funds allocated after all applicable general waivers end, so if HUD allocates Public Housing Capital Fund dollars during the period when they are covered in this year, they should release the guidance well in advance. Additionally, NAHRO does wish to know if the guidance with cover both general compliance moving forward as well as more specifics about using waivers.
On the topic of waivers, NAHRO asked about both the public interest waivers HUD has already released and other waivers included in the law that HUD has not yet discussed. NAHRO asked how PHAs would prove the need for certain waivers and HUD’s process for approving them.

Finally, HUD needs to cover a wide range of remaining questions about complying with BABA. This letter asked for clarification about contractors, including whether they may maintain their own documentation for BAP compliance and PHAs’ duties in ensuring contractors comply with BABA. Additionally, NAHRO asked about other topics, such as whether HUD has collaborated with other agencies that have produced guidance that would benefit members and whether HUD would monitor the impact BABA has on the development and modernization of affordable housing. In this section, NAHRO also asked about whether BABA will apply to other programs besides those HUD initially identified. Also within this final section of the letter, PHAs need to know how BABA will impact financial scoring, reporting, and operations. In addition to whether BABA will impact financial statements and PHAS scores, HUD should clarify the specific ways PHAs must manage their financial operations. These questions include: what documentation is required to prove compliance generally as well as with each waiver; how will PHAs pay for projects that require payments both before and after BABA goes into effect; and will PHAs face new requirement for the accounts in which they keep Federal Financial Assistance covered by BABA?

NAHRO will continue communicating with both HUD and members about the implementation of the Build America, Buy America Act.

Questions? Reach out to Andrew Van Horn at avanhorn@nahro.org.