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Docusign Envelope ID:8EB6DDAC-ED8E-4C5E-8B6E-93915DB01 CF6 <br /> Purpose of the Notice <br /> This Notice is intended to notify grantees of the"Buy America Preference"(BAP) <br /> requirement under the Build America, Buy America Act(BABA) as they apply to CPD programs. <br /> This Notice identifies the CPD programs and activities that must comply with BABA along with the <br /> timeline for the application of the BAP. It also highlights issues that grantees will want to consider <br /> when preparing for HUD's full implementation of the BAP, as described in "Public Interest Phased <br /> Implementation Waiver for FY 2022 and 2023 of Build America, Buy America Provisions as <br /> Applied to Recipients of HUD Federal Financial Assistance" (88 Fed. Reg. 17001, effective March <br /> 15, 2023). This Notice refers to 88 Fed. Reg. 17001 as the "Phased Implementation Waiver"which <br /> establishes BAP implementation points according to a schedule across HUD programs. <br /> Note: The guidance provided in this Notice is subject to change if the Office of Management <br /> and Budget(OMB)updates guidance on the application of BABA for Federal financial assistance <br /> (FFA)programs for infrastructure. <br /> L Overview of Build America,Buy America Act <br /> The Build America,Buy America Act(BABA) <br /> The Build America,Buy America Act(BABA)was signed into law by President Biden on <br /> November 15, 2021, as part of the Infrastructure Investment and Jobs Act(IIJA) as Sections 70901- <br /> 52 of Pub. L. No. 117-58. In addition to providing funding for roads,bridges,rails, and high-speed <br /> internet access, it created an incentive to increase domestic manufacturing across the country <br /> through the inclusion of BABA's "Buy America Preference"(BAP). In general, the BAP requires <br /> that all iron, steel,manufactured products, and construction materials used in infrastructure projects <br /> funded with Federal financial assistance (FFA), as outlined in Section 70914(a) of BABA,must be <br /> produced in the United States. The intent of the BAP in BABA is to stimulate private-sector <br /> investments in domestic manufacturing,bolster critical supply chains, and support the creation of <br /> well-paying jobs for people in the United States. The preference is also intended to bolster <br /> American firms' ability to compete and lead globally for years to come by requiring entities that <br /> receive Federal infrastructure funds to use American materials and products. <br /> The BABA preference for American materials and products applies to all spending on <br /> infrastructure projects by Federal agencies, including HUD. In BABA and for purposes of this <br /> Notice,the Federal infrastructure spending with a BAP is referred to as "Federal financial <br /> assistance" or"FFA."Under Section 70912(7), FFA for infrastructure "projects"includes the <br /> "construction, alteration, maintenance, or repair of infrastructure in the United States". Under <br /> Section 70914(a),the use of American iron and steel, construction materials, and manufactured <br /> products applies to funding from CPD programs for infrastructure projects. However,the BAP <br /> does not apply to "pre and post disaster or emergency response expenditures"under Section <br /> 70912(4)(B). A list of CPD disaster or emergency funding meeting these criteria can be found in <br /> Section III. <br /> Effective May 14, 2022,the BAP applies to infrastructure spending unless an agency issues <br /> a waiver in three limited situations: 1)when applying the domestic content procurement preference <br /> 2 <br />