The Buy America Build America (BABA) Act applies to Project-Based Rental Assistance (PBRA). This critical update was shared during the Owner/Agent (OA) Roundtable at the recent SAHMA Conference. HUD’s confirmation of this caught some off guard. This clarification has real operational and financial consequences for those who own Section 8 properties.

So what does it mean for you? Let’s break it down.

BABA applies to PBRA: What is BABA, Anyway?

The Buy America Build America Act, or BABA, was signed into law as part of the Infrastructure Investment and Jobs Act (IIJA) in 2021. At its core, BABA requires that iron, steel, manufactured products, and construction materials used in federally funded infrastructure projects must be made in the United States. Initially, this sounded like something that applied only to roads, bridges, or large-scale public utilities. But now, HUD has clarified: BABA applies to PBRA projects when federal financial assistance is used.

How BABA Applies to PBRA Projects

This guidance is significant for Section 8 stakeholders.

If your PBRA project receives federal financial assistance for rehab, repair, or modernization work, then BABA applies. Whether you’re receiving grants or leveraging other federal sources doesn’t matter.

For example:

• Installing new HVAC systems? That equipment must meet BABA standards.
• Replacing roofing or plumbing? The materials must be domestically sourced.
• Rehabbing common areas? Check the BABA compliance of all manufactured products.

Key Point: If any part of your PBRA project uses federal financial assistance, you are now responsible for ensuring all covered materials meet BABA’s domestic content requirements.

Why This Matters to Owners and Agents

This is not just a paperwork issue. The impact is operational and budgetary.

You may now have to:

• Source new vendors or manufacturers.
• Adjust project timelines for sourcing and verification.
• Prepare for potential cost increases due to limited supply.
• Maintain proper documentation for BABA compliance during inspections or audits.

Failure to comply could lead to funding delays or even jeopardize your eligibility for future federal assistance.

HUD is not providing blanket waivers—you must plan ahead.

Steps You Should Take Now

Now that HUD has confirmed BABA applies to PBRA, owners and agents need to act. Here’s how to get started:

1. Identify funding sources. Determine if your current or upcoming project receives any federal financial assistance.
2. Review construction and material plans. Confirm if your scope of work includes covered materials like steel, iron, or manufactured products.
3. Coordinate with vendors. Work with your contractors to ensure products meet BABA standards. Ask for certificates of compliance where needed.
4. Document everything. Maintain thorough records that verify compliance. HUD may request this during audits or monitoring visits.
5. Stay updated. HUD may issue further guidance or exceptions. Subscribe to industry updates and attend events like the OA Roundtable to stay informed.