NASEO Supports Updated HUD Energy Code Determination for Federal Housing Guarantee Programs – Lowering Homeowner Energy Bills and Reducing Risks

Source: NASEO

On May 11, 2023, pursuant to the provisions of the bipartisan Energy Independence and Security Act of 2007 (EISA), the U.S. Department of Housing and Urban Development (HUD) announced a change to their minimum energy standards for new public housing, and new homes receiving Federal Housing Administration (FHA) or U.S. Department of Agriculture (USDA) assisted or insured housing. The new rules will impact new single-family and multifamily residences built with support from HUD, FHA, or USDA by requiring these structures to comply with the 2021 International Energy Conservation Code for single-family homes and residential buildings three stories or fewer, and ASHRAE Standard 90.1-2019 for multifamily buildings four stories or more. Existing buildings will not be impacted by this change. The minimum energy standard update will be subject to a public comment period beginning when the proposed rules are published in the Federal Register and will take effect no earlier than 2024. NASEO supports the move to modernize the minimum energy standards for HUD, FHA, and USDA backed loans to lower energy costs for residents of newly constructed homes, increase the resilience of homes against extreme weather, and reduce demand on the energy system. Moreover, lower energy bills resulting from modern codes will help to reduce the financial risk of these federally-supported loans for homeowners, as well as for taxpayers that ultimately guarantee the loans.