In early November 2023 the Office of Community Planning and Development (CPD) published CPD Notice 2023-12, “CPD Implementation Guidance for the Build America, Buy America Act’s domestic content procurement preference as part of the Infrastructure Investment and Jobs Act.”
The notice represents the first piece of implementation guidance regarding the Build America, Buy America Act (BABA). BABA is mandated under the Infrastructure Investment and Jobs Act, which was signed into law on November 15, 2021.
The notice says, “The intent of the BAP (Buy American Preference) in BABA is to stimulate private-sector investments in domestic manufacturing, bolster critical supply chains, and support the creation of well-paying jobs for people in the United States.”
To whom does BABA apply?
Covered CPD Programs include:
- Community Development Block Grant Formula Programs (CDBG)
- Section 108 Loan Guarantee
- HOME Investment Partnerships Program (HOME)
- HOME Investment Partnerships American Rescue Plan Program (HOME-ARP)
- Housing Trust Fund (HTF)
- Recovery Housing Program (RHP)
- Emergency Solutions Grants (ESG)
- Continuum of Care (CoC)
- Housing Opportunities for Persons With AIDS (HOPWA)
- Self-Help Homeownership Opportunity Program (SHOP)
- Special NOFA for unsheltered and rural homeless
- Veterans Housing Rehabilitation and Modification Program (VHRMP)
- Community Project Funding (CPF)/Economic Development Initiatives (EDI)
- Section 4 Capacity Building
- Rural Capacity Building
- Pathways to Removing Obstacles to Housing (PRO Housing)
- Preservation and Reinvestment Initiative for Community Enhancement (PRICE)
- FY23 Permanent Supportive Housing (PSH) Funds
This list of Covered CPD Programs is subject to change if there are any changes to the eligible uses of funds or the establishment of new programs that fund infrastructure and are covered by BABA. According to the NAHRO blog, “Understanding whether and when the BAP applies to specific situations can be difficult because HUD has utilized a phased implementation waiver. This means that agencies must comply with the law’s Build America Preference (BAP) based on when funds were obligated, the program for which funding was awarded, and the type of materials purchased with the funds.”
What projects or activities does BAP apply to?
BAP applies to iron, steel, construction materials, and manufactured products used in infrastructure projects funded by Federal financial assistance (FFA). Infrastructure projects include construction, alteration, maintenance, or repair of any infrastructure including the structures, facilities, and equipment for projects traditionally considered infrastructure. Examples of infrastructure projects For CPD programs:
- road and sidewalk improvement projects
- water, sewer, and other utility projects
- broadband infrastructure
- housing construction and rehabilitation
- community facility construction and rehabilitation
- homeless shelter construction and rehabilitation
