The Department of Housing and Urban Development (HUD) announced on Feb. 3 that it would delay compliance enforcement of new minimum energy efficiency standards adopted in 2021 for certain single- and multi-family housing programs.
The new standards—adopted under the 2021 International Energy Conservation Code—were set to become enforceable on May 28, 2026, but were pushed back until Dec. 31.
The 2021 International Energy Conservation Code would require homebuilders to increase attic insulation for about two-thirds of the United States, as well as increase the thickness of wall insulation for residences in the middle third of the country. Concrete slabs would require additional insulation in multiple parts of the country, while nearly all residential light fixtures would be required to include dimmer switches or auto-on and auto-shutoff occupancy sensors.
Rescinding the mandate for new minimum energy efficiency standards on buildings constructed by one of HUD’s affordable housing programs or financed through one of the U.S. Department of Agriculture’s (USDA) single-family and multi-family programs was a top priority, the National Association of Homebuilders said in a Feb. 2 blog post.
According to the Homebuilders Association, the new energy efficiency standards make it more difficult—and more expensive—for homebuilders to deliver new housing units.
“Compliance with this rule would make it much harder for home builders and multi-family developers to build housing that is available and affordable for American families,” the association said.
“In fact, the Home Innovation Research Labs has found that compliance with the 2021 International Energy Conservation Code can add more than $20,000 to the price of a new home, but in practice, home builders have estimated increased costs of up to $31,000.”
In April 2024, HUD and the USDA published their final determination for adoption of the new energy standards for new residential construction, excluding low-rise buildings. The government agencies extended compliance dates for adoption of those standards for the majority of HUD and USDA housing programs in March 2025, and in July said they would review the final determination and gather additional public comment.
More than 100 public comments were submitted, HUD noted, prompting the agencies to provide additional leeway for code enforcement.
“The additional delay will provide time for the agencies to fully consider the public comments received to the July 7 Notice for Comment,” HUD said in a Federal Register filing.
“The additional delay for Section 8 Project Based Vouchers will allow time for HUD to solicit comment and develop and publish further guidance on compliance.”
“Our lawsuit seeks to show that granting HUD and USDA authority to insure mortgages for new single-family homes and apartments only if they are built to the 2021 International Energy Conservation Code or ASHRAE 90.1-2019 was done in an unconstitutional manner,” the homebuilder’s organization said.
