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WMA Regulatory Affairs Update - February 2026

National Association of Home Builders Annual Committee Meetings at the International Builders’ Show | WMA Regulatory Affairs 2026

In advance of the February 17–19 International Builders’ Show (IBS) in Orlando, NAHB convened its annual committee meetings on February 16. WMA's Director of Regulatory Affairs & Standards Development participated in the Federal Government Affairs, State & Local Government Affairs, and Construction Codes & Standards committees to stay abreast of advocacy priorities and emerging policy developments impacting the residential construction industry. 


WMA Regulatory Affairs Update - February 2026 | National Association of Home Builders Annual Committee Meetings at the International Builders’ Show 

Below are key highlights from the meetings.  


Federal Government Affairs 

This committee focuses on protecting the economic progress fostered by the U.S. home building industry by opposing tax, legislative, and regulatory policies that could undermine housing production and affordability. 


Housing Affordability & Federal Initiatives 

Housing affordability remains a central priority for the Trump Administration and Congress, with several legislative and administrative actions reflecting this focus. 


  • Executive Order on Institutional Investors On January 20, President Trump signed an Executive Order restricting large institutional investors from acquiring single-family homes.

    • The Order includes a tailored exception for build-to-rent (BTR) communities—projects planned, permitted, financed, and constructed specifically as rental housing. NAHB worked with the Administration to ensure this clarification was included, recognizing BTR as an important contributor to housing supply. 

    • The U.S. Treasury Department is finalizing its definition of “institutional investor.” 

    • NAHB is also engaged with the Administration on definitions for “single-family” and BTR housing, emphasizing “initial use” as the defining factor. 


  • National Flood Insurance Program (NFIP) Following a record 43-day lapse during the government shutdown, the NFIP has now been reauthorized through September 30, 2026. 


Federal Housing Legislation 

NAHB provided updates on two major housing packages: 

  • Housing for the 21st Century Act (House) – Passed February 9 by a vote of 390–9. 

  • ROAD (Renewing Opportunity in the American Dream) to Housing Act (Senate) – Passed October 9, 2025, as an amendment to the National Defense Authorization Act. 


NAHB supports provisions in both bills that: 

  • Advance land-use and zoning reform 

  • Improve multifamily programs such as HOME and FHA loans 

  • Reform environmental permitting under NEPA 

  • Strengthen community banks through regulatory relief 


Additional provisions supported by NAHB in the ROAD to Housing Act include: 

  • Incentive-based (“carrot and stick”) zoning reforms 

  • Whole-home repair initiatives 

  • Rural Housing Service program reforms 


NAHB is closely tracking provisions related to manufactured housing (in both bills), eviction assistance (House bill), and appraisal bias (Senate bill). 


Notably, a provision requiring a U.S. Government Accountability Office (GAO) study on a potential federal uniform residential building code was removed from the final House bill prior to floor consideration. Its removal avoided laying groundwork for a federal “one-size-fits-all” residential code mandate.


NAHB anticipates a consolidated housing package could be finalized and signed into law as early as May. 


Tariffs & Trade 

  • The U.S. Supreme Court is expected to issue a decision in the next week regarding whether tariffs imposed under the International Emergency Economic Powers Act (IEEPA) exceeded presidential authority. 

  • NAHB is preparing to advocate aggressively for Section 232 tariff exemptions on key building materials—including lumber, steel, and drywall—to help mitigate rising construction costs and improve housing affordability. 


Waters of the United States (WOTUS) 

NAHB views the Administration’s proposed WOTUS rule as favorable, establishing what it considers the narrowest definition in recent history. The final rule is expected in June or July. While litigation is anticipated, NAHB believes prior Supreme Court decisions provide a strong legal foundation for the rule’s durability. 


Permitting Reform 

Both legislative and regulatory permitting reforms are advancing: 


Legislative Efforts 

  • PERMIT Act – Streamlines Clean Water Act permitting, reduces delays, and limits state authority over water quality certifications. NAHB successfully supported inclusion of a compensatory mitigation amendment and is advocating for further improvements in the Senate. 

  • SPEED Act – Shortens NEPA environmental review timelines, limits litigation, and sets firm review deadlines. 


Regulatory Efforts

NAHB continues working with the Environmental Protection Agency (EPA) and the U.S. Army Corps of Engineers to improve Clean Water Act permitting processes. 


Codes-Related Legislation 

  • Energy Choice Act – Seeks to prevent state and local bans on natural gas, propane, and other energy sources in buildings. Bipartisan support continues to grow. 

  • Homeowner Energy Freedom Act – Repeals Section 50131 of the Inflation Reduction Act and prevents federal incentives from pressuring states into adopting costly energy code mandates. 

  • Promoting Resilient Buildings Act – Would allow FEMA grants to apply to the two most recent building code editions and establish a pilot program for residential retrofits under FEMA’s BRIC program. 



State & Local Government Affairs 

This committee monitors state and local policy developments and supports home builders’ associations (HBAs) in advocacy efforts related to housing affordability. 


Legislative Trends 

  • Approximately 37,000 bills have been introduced nationwide in 2025, with roughly 15,000 related to housing. 

  • Key themes include property tax reform and starter home initiatives. 


2025 Housing & Growth Study – Greater Kansas City 

Findings from this regional study showed: 

  • Frustration with growth was primarily directed at apartment construction—not single-family homes. 

  • Respondents generally viewed housing growth as an opportunity and opposed policies that would increase housing costs. 

  • Builders were viewed favorably. 


The study informed the Home Builders Association of Greater Kansas City’s “Let Builders Build” campaign, a public awareness initiative addressing regulatory and zoning barriers that increase housing costs. 


Housing Supply Accelerator (HSA) Playbook 

The HSA Playbook, developed by the American Planning Association and the National League of Cities in collaboration with NAHB and other national organizations, provides local officials with strategies to expand diverse and attainable housing supply. 


The initiative aligns with the National League of Cities’ “America’s Housing Comeback,” launched in early 2025 to foster federal-local partnerships and accelerate housing production nationwide. 



Construction Codes & Standards 

This committee advocates for cost-effective building codes and supports HBAs in state and local code adoption and amendment processes. 


Research & Industry Updates 

  • Presentations highlighted the measurable impact of building codes on construction costs and housing prices. 

  • The concrete industry provided updates on current specifications and emphasized the importance of understanding material types and performance requirements. 


Missing Middle Housing – 2030 ICC Code Cycle 

This issue was brought to the committee’s attention at the end of the meeting explaining the need to develop a comprehensive proposal to the International Code Council (ICC) for the 2030 code cycle addressing “missing middle” housing—duplexes, fourplexes, cottage courts, and townhouses. 


These higher-density, small-footprint housing types often fall between IRC and IBC requirements. Clearer code pathways are needed to facilitate compliant and efficient construction. 


ICC AI Navigator 

The ICC’s AI Navigator—launched in October 2023 as part of ICC Digital Codes Premium—continues to expand. The tool functions as a large language model (LLM) designed to provide more accurate code interpretations within ICC’s digital platform. 


Recent enhancements include: 

  • Expanded integration of state codes 

  • Increased repeat usage 

  • Ongoing quality testing 

  • A summary function introduced in October 2025 


Future developments include: 

  • Integration with online calculators 

  • Premium Answers integration 

  • Code commentary inclusion 

  • AI-powered code comparison tools 


WMA will continue monitoring these federal, state, and code-related developments and will keep members informed as policies and legislative packages move forward in 2026. 


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Contact: Jessica Ferris Director of Regulatory Affairs & Standards Development jferris@worldmillworkalliance.com 

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