The U.S. Department of Housing and Urban Development (“HUD”), through its Office of Environment and Energy, and the U.S. Department of Agriculture (“USDA”) published a notice for comment on “Adoption of Energy Efficiency Standards for New Construction of HUD- and USDA-Financed Housing” in the Federal Register on July 7, seeking public comments on their final determination regarding updated energy efficiency standards.
HUD and the USDA published their final determination on April 26, 2024, which assesses the economic impact of adopting updated energy codes. The agencies concluded that adoption of International Energy Conservation Code (IECC) and American Society of Heating, Refrigerating, and Air-Conditioning Engineers/Illuminating Electrical Society Standard 90.1 (ASHRAE 90.1) standards “would not negatively impact the affordability of [Energy Independence and Security Act of 2007]-covered housing.”
The updated analysis included factors to address the changes in the economic landscape due to COVID-19 and supply chain issues, adjustments to cash flow and financing factors, updates to the energy codes adopted at the state-level and more information on alternative compliance paths.
Two key updates to the cost analysis are the consideration of a 37 percent increase in the cost of construction related to supply chain issues and an energy price increase of 32 percent. These adjustments reflect the increases in cost that occurred after the time of the original analysis which was published by the U.S. Department of Energy in 2021. The report evaluated cost-effectiveness using multiple metrics, such as life-cycle cost savings, payback periods, and time to achieve positive cash flow.
HUD and USDA are now considering reexamining their affordability analysis in relation to an executive order titled, “Delivering Emergency Price Relief for American Families and Defeating the Cost-of-Living Crisis.”
The agencies are specifically requesting feedback on the following:
Economic Changes Since April 2024
Have any relevant economic conditions changed? Which factors differ from those used in the April 2024 analysis?Challenges for Builders in States with 2021 IECC or ASHRAE 90.1
Are there implementation difficulties for builders in states that already use these standards?Experiences with Higher Energy Performance Standards
For those building above the required energy standards, what benefits or drawbacks have you observed—particularly for single-family homes versus multifamily rental units?- Suggestions for Additional Compliance Paths
Are there other energy codes or standards, not currently listed, that meet or exceed the 2021 IECC baseline and are being used in the field?
Public comments are being accepted through August 6, 2025. Comments may be submitted via mail to the Regulations Division, Office of General Counsel, Department of Housing and Urban Development, 451 7th Street SW, Room 10276, Washington, DC 20410-0500, and via the Federal eRulemaking Portal at www.regulations.gov.