Comment Submitted by City of Kenosha & Kenosha Innovation Neighborhood
AnonymousOpposeGovernment
Summary: Tim Casey, Director of City Development for the City of Kenosha, argues that strict Build America, Buy America (BABA) requirements would make affordable housing projects financially unattainable. He cites specific price premiums for domestic lumber and building materials that would significantly increase construction costs.
The City of Kenosha has been working with home-builders to provide affordable housing. Those home-builders indicate to us that approximately 60% of lumber is domestic and 40% Canadian. If 100% of lumber were domestic, it would raise prices by about 25%. Shingles and siding are produced domestically, but much of the petroleum used is foreign. It would be difficult to source 100% American-made roofing material. If all domestic manufactured products were required in Federally funded projects, the price would be about 25% higher based on the estimate of a major building material supplier in Wisconsin. Domestic produced studs are available but have a 10 - 25% price premium. It is difficult to source the 55% domestic component requirement for HVAC units, water heaters and lighting fixtures. We are struggling to build obtainable homes (3 bedroom, 2 bath, full or partial basement, small garage, about 1,200 square feet) for $325,000 on city owned lots provided at no cost to the builders. If BABA requirements were added, it would make the cost of this housing unobtainable for most of the families we are trying to serve.
Thank you, Tim Casey, Director of City Development, Kenosha, WI.