The National Association of Homebuilders recently announced that members raised concerns to Congress that the housing sector's capacity to boost the production of high-quality cost-effective homes is impeded by rules and requirements imposed by the government. According to a July 14 release, the requirements are inline with "environmental, social and governance (ESG) standards.
“ESG policies already have caused home insurance companies to drop out of some areas and raise rates in others... Bank lenders are being urged to minimize the risks associated with their portfolios, causing concern they may cease lending in certain locations or increase their borrowing rates," said NAHB Chairman Alicia Huey during a hearing by the "House Financial Services" subcommittee.
Huey conveyed that there is a surge of ESG policies at various governmental levels that are directly affecting housing affordability and production.
"And as supply chain woes continue to stifle residential construction projects across the nation, we worry that ESG disclosure requirements could further impede or prevent availability of needed building supplies and/or transportation to their required destinations.”
According to the press release, Huey cited various examples of how regulations have contributed to the housing affordability problem. She referenced electrical transformer standards, saying that a proposal from the Department of Energy would also force manufacturers to update transformer systems. This would ultimately exasperate the "18 to 24 month backlog that is hammering development across the country."
Additionally she discussed energy codes, the potential ban on gas stoves and several more regulations that are slowing the housing industry. Huey said that roughly 24% of the price of a "typical new single-family home" is made up of regulatory costs.
Huey is the president of AGH Homes, a home building firm that she started in 2000, according to her biography on the NAHB website. She has been on the NAHB Board of Directors for 15 years and has been active in the organization on a number of levels. Huey has also chaired various committees within the NAHB and is an active community member in her hometown of Birmingham, Alabama.
