Affordable Senior Housing News 2026July3

During a briefing on Capitol Hill on June 25, LeadingAge and other affordable housing groups pushed for an exemption on recent “Build America, Buy America” (BABA) requirements that add time delays and significant cost increases to affordable housing developments. LeadingAge member 2Life Communities, a non-profit housing provider based in Massachusetts, presented during the briefing about the wide-ranging challenges associated with BABA compliance. While showing renderings of an affordable senior housing development at risk of stalling due to the domestic sourcing requirement, Lizbeth Heyer, the President of 2Life Communities, told congressional offices that because of BABA-related uncertainty, the project has been delayed: “Altogether, BABA has already added more than $1 million in known costs and six months of delay.” Heyer went on to say that the “$1 million [in additional costs] is not an abstract number. It could instead fund approximately three years of health and wellness services that help our residents remain health, independent, and out of hospitals and nursing homes.” Enacted in 2021 and recently taking effect due to a phased-in implementation approach, BABA stipulates that federally-funded infrastructure projects utilize domestically-produced materials. The problem? Many building products are simply not produced in the United States, and requesting a waiver is an uncertain and lengthy process that must be complete for each individual item within a construction project (down to the hinges, gaskets, and appliances). BABA was originally intended to apply more narrowly to federal infrastructure projects like roads and bridges, but was expanded to include federally-assisted housing programs. For years, LeadingAge has been calling on the White House and HUD to reassess the applicability of BABA for affordable housing projects, including affordable senior housing developments and major rehab funded through the Department of Housing and Urban Development’s (HUD) Section 202 Supportive Housing for the Elderly program. BABA compliance is also triggered by HUD programs like the HOME Investment Partnerships program, as well as Permanent Supportive Housing (PSH), the Green and Resilient Retrofit Program (GRRP), Public Housing, and even Congressionally Directed Spending (also known as congressional earmarks). LeadingAge co-organized the briefing with the National Housing and Rehabilitation Association (NH&RA), Habitat for Humanity, and other housing organizations representing affordable housing providers nationwide. The briefing was sponsored by the bipartisan Congressional Build America Caucus, also known as the “abundance” caucus, which aims to revive American building capacity by speeding up infrastructure, housing and energy projects. The briefing showcased various types of housing, including senior and supportive housing, assisted Multifamily and Public Housing, and single family housing. The panel of affordable housing providers each shared the same story: While in the midst of a housing crisis, BABA is making it even harder to build housing that is affordable. However, the true impacts of BABA are not absorbed by housing providers, but by the residents they serve, including the more than 6,200 older adults on 2Life Communities’ waiting list. “Strong American manufacturing and affordable housing should reinforce each other – not compete with one another,” said Heyer. “Give us the certainty we need to get back to what we do best: building the homes – and communities – that America’s seniors deserve.” LeadingAge will continue to push on Capitol Hill and with HUD and the White House for the necessary policy changes, including a BABA exemption for affordable housing and an improved waiver process.

Please join LeadingAge, the Housing Partnership Network, Stewards of Affordable Housing for the Future, Community Preservation Corporation, and NeighborWorks America for an informative presentation and peer exchange on building a scope of work for projects with Comprehensive awards through the Green and Resilient Retrofit Program (GRRP). The webinar is part of a series featuring guest speakers and peer exchange through open discussion. The webinar will be held on Thursday, July 9, 1:30 p.m. - 3 p.m. ET. Register here.

LeadingAge recently convened our housing members utilizing the Rental Assistance Demonstration (RAD) for senior housing preservation. During the discussion, we developed policy feedback for the Department of Housing and Urban Development (HUD) related to pre-conversion rent boosts through the Preservation Rent Increase (PRI) initiative. LeadingAge has given HUD our feedback about managing PRI approvals through a time-limited approach instead of a waitlist approach, and the agency has indicated an openness to adopting this approach for future funding tranches of PRI from Congress. LeadingAge calls on our membership to join our advocacy on the Hill to ensure that more funding is appropriated for RAD - take action here to reach out to your lawmakers on HUD's FY27 funding package. In the meantime, HUD has received enough RAD financing plans to fully consume both current PRI funding tranches ($6 million previously appropriated and $4 million recently appropriated for FY26). As a result, according to HUD, any new RAD for PRAC conversion plan submissions with PRI after May 29, 2026, will be wait-listed and will be evaluated on a first-come-first-serve basis. However, LeadingAge has learned there may be an opportunity to relieve some pressure on the PRI funding account by meeting certain closing dates within RAD conversions. LeadingAge is hosting our next RAD for PRAC Peer-Sharing call to discuss the implications of the PRI oversubscription and the feasibility of expedited timelines for closing. Register here for our next RAD for PRAC Peer-Sharing call on July 16 at 2:30pm ET.

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