The National Association of Home Builders (NAHB) has raised serious concerns about the Biden administration's latest interpretation of the Waters of the United States (WOTUS) rule, which they argue has further complicated the regulatory process and worsened the housing affordability crisis. In 2023, the Supreme Court issued a decision in Sackett v. Environmental Protection Agency (EPA) that redefined the scope of the Clean Water Act and compelled the EPA and the U.S. Army Corps of Engineers to provide additional regulatory guidance for builders and developers.

 
The NAHB's comments were presented to Congress on September 11, emphasizing the impact of the administration's regulatory approach on the home building industry. Vince Messerly, president of the Streams and Wetlands Foundation, a non-profit wetlands mitigation bank, testified before a congressional panel, highlighting how the Supreme Court's decision in Sackett v. Environmental Protection Agency (EPA) was meant to redefine the scope of the Clean Water Act. However, Messerly contended that "the federal agencies are not faithfully adhering to the Supreme Court's holdings," leading to increased uncertainty and delays in permitting.

These delays, according to Messerly, are driving up housing costs and causing developers and builders to abandon projects at a time when the nation is facing a severe housing affordability crisis. "The residential construction industry and others in the regulated community continue to experience prolonged and opaque permitting processes," he stated, adding that this unpredictability is making home building "more inefficient and costly."

The NAHB is urging Congress to intervene, recommending that lawmakers provide clear definitions for terms like "relatively permanent water body" and "continuous surface connection," which are critical for understanding the regulatory framework under which builders operate. The association also calls for timely processing of Clean Water Act Section 404 permits to prevent further disruption in the housing market.

https://www.nahb.org/news-and-economics/press-releases/2024/09/wotus-rule-hurts-housing-affordability-builders-tell-congress