Publication
A Green Light for Housing? What Executive Order 14394 Means for Your Next Project
On March 13, 2026, President Trump signed Executive Order 14394, “Removing Regulatory Barriers to Affordable Home Construction” (the “Order”). The Order directs federal agencies to reduce regulatory burdens on residential development, streamline environmental permitting, and encourage state and local governments to adopt housing-friendly policies.
The Order includes several key provisions that developers and homebuilders should be aware of moving forward.
Key Provisions
The Order targets four main areas:
1. Federal Environmental Regulations
First, it directs the Secretary of the Army and Environmental Protection Agency (EPA) to revise permitting standards, including stormwater permits, wetlands permits under Section 404 of the Clean Water Act, and related construction-site requirements. The Order also targets energy-efficiency mandates for U.S. Department of Housing and Urban Development (HUD) and U.S. Department of Agriculture (USDA) financed housing. For developers and homebuilders, these revisions could reduce project delays and compliance costs associated with stormwater management, wetlands mitigation, and energy-efficiency upgrades, expenses that often add significant time and cost to residential development projects.
2. Federal Permitting
The Order further directs the Council on Environmental Quality (CEQ) to issue guidance creating categorical exclusions under the National Environmental Policy Act of 1969 (NEPA) for housing construction and directs the Advisory Council on Historic Preservation to reduce burdens on housing, construction, and related infrastructure projects under Section 106 of the National Historic Preservation Act. For developers and homebuilders, categorical exclusions from NEPA and streamlined Section 106 historic reviews mean faster project approvals, reduced consultant costs, and shorter holding periods for land, directly improving project economics and time-to-market.
3. State and Local Best Practices
By May 12, 2026, the HUD Secretary must issue “best practices” for state and local governments addressing, among other things: streamlined permitting, by-right development for single-family homes, limits on green-energy mandates, acceptance of manufactured/modular housing, and removal of urban growth boundaries and similar restrictions. These best practices may become conditions for federal housing grants. For developers and homebuilders, this provision is particularly significant because it may pressure state and local governments, where most land-use restrictions originate, to adopt more housing-friendly policies or risk losing federal funding for housing programs.
4. Opportunity Zone Coordination
Lastly, the Order directs the U.S. Treasury Department and HUD to evaluate ways to better align Opportunity Zone tax incentives with single-family home construction, including potential coordination with the New Markets Tax Credit under 26 U.S.C. §45D. For developers and homebuilders, enhanced coordination between these incentive programs could unlock new financing options and tax benefits for single-family projects in designated census tracts, making projects in underserved areas more financially viable.
What Homebuilders and Developers Should Know
While the Order itself does not change any existing rule, it initiates a process for prompting agency action. Actual regulatory changes will require agency rulemaking over the coming months and years, and litigation is expected. In the meantime:
- Continue complying with existing regulations until formal changes take effect.
- Monitor agency rulemaking from the Secretary of the Army, EPA, HUD, U.S. Department of Energy, and CEQ.
- For projects delayed by Section 404 permitting, NEPA, or Section 106 review, watch for regulatory changes that could accelerate timelines.
- Engage with local officials to advocate for reforms aligned with the HUD best practices expected by May 12, 2026.
- For Opportunity Zone projects, track Treasury – HUD coordination that could unlock new incentives for single-family home construction.
- Preserve existing entitlements and do not let permits lapse in anticipation of future regulatory relief.
In addition to the Order, the U.S. Senate recently passed H.R. 6644, the 21st Century ROAD to Housing Act, which now heads to the House for consideration. As federal housing policy continues to evolve through executive and legislative action, Snell & Wilmer will continue to monitor the space and provide updates.
For additional information, please see www.swlaw.com and the Snell & Wilmer Real Estate Practice Group page found there.
***Opinions expressed are those of the authors and not necessarily the firm’s or their colleagues’.
This legal alert is for informational purposes only and does not constitute legal advice. © 2026 Snell & Wilmer L.L.P.
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