OIG Report Highlights BABA Implementation, Monitoring Issues; HUD Takes Action

Recommend

Following the OIG evaluation, HUD's Office of Multifamily Housing Programs will implement a monitoring process to ensure compliance with Build America, Buy America; the start is targeted for July 2027.

A report from the Office of the Inspector General (OIG) evaluating the Department of Housing and Urban Development's (HUD) implementation of Build America, Buy America (BABA) requirements throughout agency programs calls out HUD's lack of compliance monitoring for BABA and makes recommendations on BABA oversight.

For LeadingAge members developing new affordable housing units, the Buy America Preference within BABA requiring federal agencies to limit federal infrastructure spending unless the iron, steel, manufactured, and construction products used were domestically sourced in the U.S., has proven challenging and in some cases, infeasible-a point underscored in our July 20, 2026 comments to HUD.

In the September 10 report, titled "HUD Needs to Improve its Monitoring of the Buy America Preference of the Build America, Buy America Act," the OIG recommends that the agency designate an official responsible for overseeing BABA implementation and consistency across HUD program offices.

BABA is applicable to four HUD program offices, including the Office of Multifamily Housing Programs, which administers the Section 202 Supportive Housing for the Elderly program, as well as the Green and Resilient Retrofit Program (GRRP), both of which are subject to BABA requirements. The report does not reference BABA's applicability to HUD's Rental Assistance Demonstration (RAD), which is a win for LeadingAge members.

As a result of the OIG evaluation, the agency in April appointed an official for domestic sourcing from the office of administration. Moving forward, the Office of Field Policy and Management will serve as the lead office for BABA compliance across HUD.

As part of the evaluation process, HUD's Office of Multifamily Housing Programs (MFH) agreed to implement a policy for monitoring compliance with BABA, with implementation of compliance monitoring targeted for July 2027. The report also states that to date, MFH has not issued any waivers, despite LeadingAge members experiencing significant challenge with the requirements.

LeadingAge will continue to work with our members and HUD to improve the waiver process; in addition, LeadingAge continues to urge HUD and Congress to fully exempt affordable housing developments from the Buy America requirements because they are too difficult to execute and the original statute did not intend to apply BABA requirements to affordable housing.