Federal 'Buy America' Rule Stalls Affordable Housing Projects in Maine

Developers say the new law is adding significant costs and delays, putting critical housing plans on hold

Mar. 12, 2026 at 2:19pm

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Maine's largest affordable housing developers say a new federal law requiring 95% of construction materials to be sourced from the U.S. is stalling over 400 much-needed affordable housing units across 10 projects in the state. Developers say the Build America Buy America Act, passed in 2021, has created an "unofficial moratorium" on affordable housing construction due to the lack of available American-made products, especially for heating, ventilation and air conditioning systems. The delays in processing waivers from the Department of Housing and Urban Development are putting projects at risk of losing critical funding, and developers are now weighing whether to forgo federal dollars altogether to avoid the new requirements.

Why it matters

Maine is facing a severe affordable housing shortage, with the state needing to build 84,000 new homes by 2030 to meet demand. This federal law is exacerbating the crisis at a time when rents and home prices are at record highs, and more than half of Portland renters are considered cost-burdened. The delays are preventing hundreds of low-income individuals and families from accessing stable, affordable housing.

The details

The Build America Buy America Act, signed into law in 2021, requires that 95% of construction materials for projects using certain federal funds be sourced from the U.S. Developers say this is creating major challenges for affordable housing projects, which have thousands of components compared to infrastructure projects like roads and bridges. Many critical building materials, especially HVAC systems, are simply not available from American manufacturers. Developers must now apply for waivers from the Department of Housing and Urban Development, a process that can take 6 months or more. This is putting projects at risk of missing deadlines and losing crucial funding.

  • The Build America Buy America Act was signed into law in late 2021.
  • The law is now in full effect, after HUD postponed some requirements into 2022.
  • Developers say they have been waiting 6 months or more for HUD to process waiver requests.

The players

Todd Rothstein

Director of construction services for the Portland-based nonprofit Avesta Housing.

Laura Reading

Director of affordable housing for Developers Collaborative in Portland.

Tyler Norod

Director of development for Westbrook Development Corporation.

Kevin Bunker

Founder of Developers Collaborative.

Dan Brennan

Executive director of MaineHousing.

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What they’re saying

“We must not let individuals continue to damage private property in San Francisco.”

— Robert Jenkins, San Francisco resident

“Fifty years is such an accomplishment in San Francisco, especially with the way the city has changed over the years.”

— Gordon Edgar, grocery employee

The takeaway

This federal law, designed to boost American manufacturing, is having the unintended consequence of severely hindering affordable housing development in Maine at a time of acute need. Developers are calling for federal lawmakers to find a solution, whether that's increasing the allowable percentage of foreign materials, creating a blanket waiver for certain products, or delaying the affordable housing requirements to give domestic manufacturing time to catch up.