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Developers and officials urge HUD to cut red tape: NEPA, Buy America, Davis‑Bacon cited

August 08, 2025 | Fargo , Cass County, North Dakota


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Developers and officials urge HUD to cut red tape: NEPA, Buy America, Davis‑Bacon cited
Local developers and city officials urged HUD to reduce regulatory burdens they said inflate costs and delay projects, citing NEPA, Buy America, Section 3 and Davis‑Bacon rules as major impediments.

Why it matters: Speakers said regulatory requirements can add tens of thousands of dollars to a project and that time-sensitive construction seasons in North Dakota make delays especially costly. They told HUD that speeding approvals and adjusting program rules would unlock more housing supply without additional federal appropriations.

Dan Madler, CEO of affordable‑housing developer Beyond Shelter, said federal resources available to the state are limited and “we need to cut red tape.” Madler specifically recommended removing Build America Buy America requirements from federal housing programs, modernizing NEPA, and eliminating Section 3 and Davis‑Bacon requirements for certain HUD‑funded projects. “This is the paperwork. It adds 50 to $100,000 of paperwork to the bid,” Madler said.

Nicole Crutchfield, Fargo planning director, described local projects that stalled because of environmental and procurement rules. She said the city paused three projects last year because of “choice‑limiting actions and environmental” steps, and requested HUD reconsider the timeliness test used for program eligibility.

Governor Kelly Armstrong and HUD officials acknowledged the concerns. Turner said HUD has started regulatory work and encouraged local leaders to inventory rules that constrain building. “The regulatory environment must get better. And it’s gonna start with us,” Turner said.

Discussion vs. decisions: The roundtable produced no formal regulatory changes. HUD officials said they are reviewing internal processes; local leaders will provide additional technical and policy details for HUD staff to review.

Clarifying detail: Madler gave a rough breakdown of federal annual allocations the state uses — roughly $3,000,000 each for CDBG, HOME, tax credits (pre‑bill), and housing trust fund — and said LIHTC funding may increase after recent federal legislation. Several speakers asked for faster waiver processes for Buy America rules in short construction seasons.

What’s next: HUD regional staff will continue engagement; local officials said they will submit more detailed recommendations to the HUD regional office for consideration.

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Scribe from Workplace AI
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