A federal law championed for bringing manufacturing jobs back to America is now creating a new problem: it's slowing the construction of affordable housing at a time when San Diego County and the broader East County region desperately need more units.
The Build America, Buy America Act — passed in 2021 as part of the bipartisan infrastructure law — requires that nearly everything used in federally funded affordable housing projects, from HVACs and lighting to ceiling fans and sink hooks, carry a Made in USA label. The problem: many of those products simply aren't manufactured domestically, and the waiver process that was supposed to handle exceptions has ground to a near-halt.
The Department of Housing and Urban Development, which processes the waivers, has had its staff significantly reduced under the Trump administration. As a result, developers across the country report waiting six months or more for approvals that used to be routine. Some have spent tens of thousands of dollars on consultants just to navigate the compliance requirements.
For the East County region, where housing costs remain high and affordable unit waitlists stretch years long, the slowdown has real consequences. San Diego County has been pushing to expand affordable housing stock — including projects tied to ADU ordinances and state housing mandates that affect cities like Santee, El Cajon, and La Mesa. Delays in any federally subsidized component of that pipeline ripple downstream.
"We've sort of resigned ourselves that we're just gonna build less units across the entire country during a housing crisis," said Tyler Norod, president of Westbrook Development Corporation, one of the developers affected.
HUD said in a statement it is committed to "ensuring that federal spending supports America's industrial base" while monitoring how compliance impacts costs. Housing advocates are pressing for faster action, arguing that the intent of the law — boosting domestic manufacturing — shouldn't come at the expense of working families waiting for affordable homes.
Source: The Associated Press