HUD Rescinds FHA, USDA Energy Efficiency Rule for New Homes The U.S. Department of Housing and Urban Development (HUD) announced on Tuesday that it is rescinding a 2024 rule requiring new homes to meet 2021 International Energy Conservation Code (IECC) standards to qualify for Federal Housing Administration (FHA) and U.S. Department of Agriculture (USDA) loans. HUD Secretary Scott Turner made the announcement at HousingWire’s The Gathering event in Austin, emphasizing that the policy change aims to reduce construction costs and increase housing availability. The 2024 rule, introduced under the Biden administration, mandated that new residential construction projects comply with stricter energy efficiency standards outlined in the 2021 IECC. These standards aimed to lower long-term energy costs for homeowners but faced criticism for imposing significant upfront expenses on builders. Turner stated that the rule effectively added $20,000 to $31,000 in costs per single-family home, making it difficult for developers to justify new projects. The rescinded policy will initially apply to new construction, with FHA and USDA loan programs reverting to the energy efficiency standards in place before the 2024 rule was implemented. Turner argued that the Biden-era regulation created an artificial barrier to housing production, as the payback period for energy savings could span decades. He noted that while proponents claimed upfront costs would be offset over time, the average home price in some regions—ranging from $300,000 to $400,000—made the financial burden impractical for many builders. Turner highlighted a recent ruling from the U.S. District Court for the Eastern District of Texas, which found that the Biden-era standard would reduce housing availability.#brooke_rollins #hud #scott_turner #housingwire #the_gathering
