“There are lots of components which have led to our present setting the place housing provide has didn’t sustain with demand,” he stated. “Whereas a few of these components are past the remit of Congress, there’s a universe of federal limitations to housing provide that we’re engaged on addressing on this committee.”
BABA necessities
Enacted inside the 2021 Infrastructure Funding and Jobs Act, BABA mandates the usage of U.S.-produced iron, metal, manufactured merchandise and development supplies in federally funded infrastructure tasks.
Flood argued that whereas this can be acceptable for infrastructure work, making use of the identical guidelines to housing projects has created extreme price spikes and delays.
He stated this growth has created real-world penalties for builders, nonprofits and public housing businesses navigating the federal funding course of.
“Sadly, that call has had disastrous results,” he stated. “Whereas a tough and quick BABA requirement could make sense when constructing a bridge fabricated from metal and concrete, it makes much less sense when you consider all of the totally different parts that go into constructing a house. And basically, this coverage betrays a fundamental actuality of federal housing packages.
“If we’re aiming to take finite federal assets and use them to construct housing, we’d like to have the ability to scale these {dollars} as effectively as attainable to make it work.”
Builders cite price will increase
Flood backed his claims with examples submitted to his workplace from housing builders nationwide.
The anecdotes included tasks within the Southwest, Massachusetts, Wisconsin, California and Montana — every citing six-figure price hikes tied to BABA compliance, marketing consultant necessities, documentation burdens or difficulties sourcing U.S.-made supplies.
He quoted builders describing compliance prices topping $250,000 on a 60-unit venture, BABA-driven materials will increase of almost 18% in Massachusetts and greater than $400,000 added to a Wisconsin growth.
“Whereas the BABA guidelines have been effectively supposed, and I feel meant for bigger infrastructure, the truth is when builders get caught ready for waivers or looking for substitutes or having to pay increased costs, the impression goes proper right down to the top shopper,” Kevin Sears, instant previous president of the Nationwide Affiliation of Realtors, stated in response to Flood’s queries.
In California, one 80-unit venture noticed a $1.3 million soar. In Montana, BABA delays brought about a housing belief fund award to run out earlier than contractors may safe U.S.-made utility parts, based on Flood.
“I may go on and on and on,” he stated. “However the actuality is that nonetheless well-intentioned it could be, BABA is driving up the price of tasks, losing federal {dollars} that may very well be going to constructing extra housing and, in some instances, it’s even killing tasks completely.”
Legislative push
The listening to additionally featured discusson of six Flood-backed payments — together with his HOME Reform Act of 2025.
Further measures included his Housing Provide Frameworks Act, the Figuring out Regulatory Limitations to Housing Provide Act, the Unlocking Housing Provide By means of Streamlined and Modernized Critiques Act, and H.R. 5263 — all aimed toward lowering federal delays.
