The National Association of Home Builders (NAHB) and 15 state attorneys general have filed a lawsuit against the U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of Agriculture (USDA) over new energy efficiency standards for certain single-family homes and multifamily housing programs. The lawsuit, filed on January 2, 2025, in the Eastern District of Texas, aims to prevent the adoption of the 2021 International Energy Conservation Code (IECC) and ASHRAE 90.1-2019 as minimum energy-efficiency standards.
The new standards, which define minimum levels and specifications for building insulation, windows, heating and cooling systems, lighting, and other energy-consuming items, are intended to improve energy efficiency in new construction. However, the NAHB and the state attorneys general argue that these regulations will significantly increase housing costs and exacerbate the ongoing affordability crisis.
NAHB Chairman Carl Harris stated that compliance with the 2021 IECC could add more than $22,000 to the price of a new home, with some builders estimating increased costs of up to $31,000. The NAHB claims that these cost increases will result in fewer homes being built, worsening the nation’s housing shortage.
The lawsuit contends that the new standards will disproportionately affect vulnerable home buyers and renters. Harris argued that the policy would act as a deterrent to new construction at a time when the nation needs to boost its housing supply to lower shelter inflation costs.
Proponents of the new standards cite national energy savings, reduced greenhouse gases, and potential annual energy cost savings of about $2,300 for the typical homeowner. Tom Ward, vice president of legal advocacy at NAHB, stated that their members are finding much lower energy savings in practice, often only a couple hundred dollars per year.
The lawsuit also claims that the adoption of these standards was done unconstitutionally. The NAHB argues that granting HUD and USDA the authority to insure mortgages only for homes built to the 2021 IECC or ASHRAE 90.1-2019 standards was implemented improperly.
The 15 states joining the NAHB in this lawsuit are Alabama, Arkansas, Idaho, Indiana, Iowa, Kansas, Louisiana, Missouri, Montana, Nebraska, South Carolina, Tennessee, Texas, Utah, and West Virginia. This case highlights the ongoing tension between efforts to improve energy efficiency in buildings and concerns about housing affordability and construction costs.
More information is available here.
Image: IECC
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