A federal court has blocked the Department of Housing and Urban Development (HUD) and the Department of Agriculture (USDA) from enforcing new energy efficiency standards on certain housing programs. The ruling came after a lawsuit filed by the National Association of Home Builders (NAHB) and 15 states challenged the agencies' decision to require compliance with the 2021 International Energy Conservation Code (IECC) and the 2019 ASHRAE 90.1 standard.
Bill Owens, chairman of NAHB and a home builder from Worthington, Ohio, responded to the decision with a statement: “The Eastern District Court of Texas ruling in our case preventing HUD and USDA from implementing their final determination to impose the 2021 IECC and 2019 ASHRAE 90.1 standard is a major victory for housing affordability and common-sense regulations. Studies have shown that HUD and USDA’s final determination to adopt these energy efficiency standards would have added between $9,600 and $21,400 to the price of a new home depending on the climate zone. This energy codes mandate would have resulted in decreased production and longer permitting and construction times, further exacerbating the nation’s housing affordability challenges."
Owens continued: “The court agreed with NAHB and 15 state attorneys general that HUD and USDA’s adoption of the energy efficiency standards would decrease housing availability and thus was in violation of the Cranston-Gonzalez National Affordable Housing Act. The court also held that under the Cranston-Gonzalez Act the agencies may only adopt one amendment to the 2006 IECC, which they did in 2015 by adopting the 2009 IECC. This ruling means that HUD and USDA cannot impose new energy code mandates that will raise construction costs and limit access to federal mortgage programs at a time when many American families are already struggling to afford a home.”
The National Association of Home Builders operates as a trade association supporting professionals in residential construction through advocacy, education, networking opportunities, resources, and maintaining a nationwide network for its members (official website).
