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Removing Regulatory Barriers to Affordable Home Construction

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CBCFEXECUTIVEORDERTRACKER

DateIssued:March13,2026

Topic:

Thisexecutiveorderloosenstherestrictionsonseveralfederal environmentalregulationsinanefforttopromotesinglefamilyhome construction.

Theorderidentifiesexcessiveregulationasthecauseofrisinghousing costsandencouragesleadersatalllevelsofgovernmenttopromote newhousinginitiativesbycurbingsafetyprovisionsandmaximizing incentivesforprivateinvestors.

HOWWILLTHISEXECUTIVEORDERBEENFORCED?

ThisexecutiveorderwillbeenforcedbyseveralCabinetdepartments andfederalagencies.

TheorderinstructstheSecretaryoftheArmyandtheAdministratorof theEnvironmentalProtectionAgency(EPAAdministrator)toamend severalrequirementsaimedatpreservingbodiesofwaterinorderto reducethecostofhousingconstruction,including:

TheConstructionGeneralPermitforstormwaterdischargesandthe MunicipalSeparateStormwaterSystempermit,whichoutlinesafe disposalpracticestopreventpollutioninurbanareas.

TotalMaximumDailyLoads--themaximumamountofapollutant allowedtoenterawaterbodytomaintainwaterqualitystandards.

Section404oftheCleanWaterAct,whichregulatestheallocationof materialstomaintainwaterways.

HOWWILLTHISEXECUTIVEORDERBEENFORCED?

TheorderdirectstheSecretaryofCommerce,theSecretaryofHousing andUrbanDevelopment(HUDSecretary),theSecretaryofTransportation, andtheDirectoroftheFederalHousingFinanceAgency(FHFA)to considerremovingrulesandrevisingprogramsthat“constrainresidential developmentandimpedehousingaffordability.”

TheorderpermitstheSecretaryofAgriculture,theSecretaryofEnergy,the HUDSecretaryandtheFHFADirectortoreformoreliminateburdensome orexpensiveenergyefficiencyrequirements.

TheorderinstructstheHUDSecretarytodevelopalistofbestpracticesto promotehousingconstructionandoutlinesspecificregulatoryinitiatives, including:

Eliminatingurbangrowthboundaries,whichareintendedtopreserve agriculturallandsfromrapidurbansprawl

Endinggreen-energybuildingrequirementsand“unreasonable” buildingcodeexecutiontimelines

Reviewingrestrictionsontheuseofmodularhousingunits,and Streamliningthehousingdevelopmentpermittingprocess.

TheorderinstructstheHUDSecretarytosharethesebestpracticeswith stateandlocalgovernmentswithinsixtydaysoftheorder’sissuance.The orderalsodirectstheSecretaryofAgriculture,SecretaryofTransportation, HUDSecretary,andEPAAdministratortoreviseregulations,guidance, grantrequirements,technicalassistance,andotherrelevantagency documentsorpracticestoalignwiththebestpractices.

TheorderdirectstheChairmanoftheCouncilonEnvironmentalQualityto provideguidanceonenforcingtheNationalEnvironmentalPolicyActof 1969inawaythatreducedburdensonhousingconstructionand infrastructure.

TheordercompelstheChairmanoftheAdvisoryCouncilonHistoric PreservationtodevelopguidanceonenforcingtheNationalHistoric PreservationActinawaythatpromoteshousingconstructionand infrastructureandreducestheburdenofthereportingrequirements.

TheorderinstructstheSecretaryoftheTreasuryandtheSecretaryof HousingandUrbanDevelopmenttoexpandinvestmentinsingle-family homeconstructionbyaligningtheirdepartments’initiativeswiththe OpportunityZonetaxincentives.

TheorderalsodirectstheSecretaryoftheTreasuryandtheHUDSecretary toevaluateopportunitiestopromotesingle-familyhomeconstructionin censustractsthatqualifyasQualifiedOpportunityZonesandaslowincomecommunitiesforthepurposesoftheNewMarketsTaxCredit.

HOWDOESTHISIMPACTBLACKCOMMUNITIES?

ThisexecutiveorderisanextensionoftheTrumpAdministration’seffortsto increasethehousingsupplyintheUnitedStates.Thisobjectivewould supportwealthbuildingandhomeownershipinBlackcommunities,as policyinterventionisnecessarytoaddresstheBlack-white homeownershipdisparity.In2024,theBlackhomeownershipratewas lowerthaninthe1960s,whendiscriminatoryhousingpracticeswerelegal.By prioritizinghousingendeavorsinareasthatqualifyforNewMarketTax Credits,thisexecutiveorderwilldriveinvestmentinlow-incomeBlack communities.However,thisorderalsoencouragesinvestmentsin OpportunityZones,aprogramthatdoesnotguaranteeinvestmentsinBlack communities.

OpportunityZonetaxincentives,establishedintheTaxCutsandJobsActof 2017,areavailabletoanycorporationorindividualwhousestheircapital gainsto“substantiallyimprove”existingcommercialorindustrialrealestate, orfundtheconstructionofnewhousing,infrastructure,andstart-up businessesinunderdevelopedcommunities.TheOfficeofTaxAnalysis foundthatlessthanhalfofareasdesignatedasOpportunityZonesreceived investmentsfrom2018-2020,andthezonesreceivinginvestmenthada lowershareofBlackresidentsthanthosethatdidnotreceiveinvestment. Nearly80%ofinvestmentswenttoonly5%ofthezones.Theprogramallows for10%oftheinvestmenttobespentoutsideofthezones,includinginhighincomecommunities.Thetaxincentiveshavebeenineffectforalmosta decadeandhaveservedasavehicleforwealthyprivateinvestorstodelay capitalgainstaxesbuthavenotproventobeaviablemethodofeconomic opportunityformarginalizedcommunities.

Theorderalsorollsbackseveralenvironmentalregulationsthatpreserve thewatersupplyandnaturalresourcesinwaysthatcouldendangerBlack communities.Priortothisorder,BlackAmericanswerealready disproportionatelylikelytobevulnerabletoclimate-relateddisasterssuch ashurricanes,flooding,andextremeheat.Combinedwiththerecent constructionofdatacenters,powerplants,andtransmissioncorridorsin low-incomecommunities,BlackAmericansarefacingincreasedexposure topollutionandhigherratesofasthma.Thisorderexpediteshousing projectsinneighborhoodswithmarginalizedindividualsandsimultaneously repealsdecades-oldregulationstoreducepollutionandpromoteenergy efficiency.ThisexecutiveordercompromisesthehealthofBlack communitiesinordertocreateeconomicopportunity.

MembersoftheCongressionalBlackCaucus(CBC)haveadvanced legislationtoincreasethehousingsupplywhilemaintaining environmentalprotections.H.R.6644,the21stCenturyROADtoHousing Act,allowstheDepartmentofHousingandUrbanDevelopmentto prioritizegrantfundinghousingdevelopmentorpreservationin OpportunityZones.NearlyadozenCBCmembershavecosponsoredthe bill,whichasofMarch2026,passedtheUSHouseofRepresentativesand isupforSenatedeliberation.

SenatorRaphaelWarnockreleasedastatementontheimportanceof thislegislation:“InAtlanta,privateequity’sgreedissqueezingfirsttimehomebuyersoutofthemarketandpushingtheAmericanDream furtheroutofreach.It’stimeCongressdidsomethingaboutit.[…]This legislationisbipartisanandcommonsense:let’sgetitdone.”Full Statement

ToreadmoreabouttheCBC’slegacyonfairhousing,visitAvoice,our virtuallibrary.

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Removing Regulatory Barriers to Affordable Home Construction by Congressional Black Caucus Foundation - Issuu