The


U.S.
Department
of
Housing
and
Urban
Development
(HUD)
and
the


U.S.
Department
of
Agriculture
(USDA)
have
settled
on
new

energy-efficiency
standards
for
the
construction
of
new
single-family
and
multifamily
homes.
This
fulfills
a
requirement
laid
out
in
a
2007
law
that
directs
the
departments
to
adopt
the
most
recently
published
energy-efficiency
standards
following
reviews
by
the

U.S.
Department
of
Energy
(DOE)
and
HUD
itself.

The
“Adoption
of
Energy
Efficiency
Standards
for
New
Construction
of
HUD-
and
USDA-Financed
Housing”
was
published
on
Friday
in
the
Federal
Register,
and
will
go
into
effect
on
May
28.

The
Energy
Independence
and
Security
Act
of
2007,
signed
into
law
by
President
George
W.
Bush
that
December,
featured
a
statutory
requirement
directing
HUD
and
USDA
to
“jointly
adopt
the
most
recently
published
energy
efficiency
standards
for
single
family
and
multifamily
homes,
subject
to
an
energy
efficiency
determination
by
the
[DOE]
and
a
cost-benefit
housing
‘affordability
and
availability’
test
by
HUD,”
according
to
an
announcement
from
the


Federal
Housing
Administration
(FHA).

A
preliminary
determination
was
published
by
HUD
and
USDA
in
May
2023,
based
on
energy-efficiency
standards
developed
by
the

American
Society
of
Heating,
Refrigerating
and
Air-Conditioning
Engineers
(ASHRAE)
and
the

International
Energy
Conservation
Code
(IECC).

These
standards
will
“lower
energy
costs
for
owners
of
newly-constructed
homes,
benefitting
homeowners,
FHA,
and
communities,”
the
announcement
stated.
“HUD
expects
this
to
be
particularly
beneficial
for
low-income
and
rural
homeowners
who
typically
face
disproportionately
high
energy
cost
burdens.”

The
implementation
timeline
varies
based
on
the
type
and
location
of
new
construction.
For
FHA-sponsored
single-family
homes,
new
construction
must
comply
with
the
2021
IECC
if
building
permit
applications
are
submitted
18
months
or
later
following
the
May
28
effective
date.

For
new
construction
in
persistent
rural
poverty
areas,
as
defined
by
the

USDA
Economic
Research
Service,
compliance
with
the
2021
IECC
will
be
required
24
months
after
the
May
28
effective
date.
Within
the
next
month,
USDA
will
“publish
a
map
of
rural
areas
covered
by
this
extension
no
later
than
30
days
after
the
effective
date
of
this
notice.”

FHA
will
also
publish
a
mortgagee
letter
with
additional
implementation
details
for
its
single-family
programs
sometime
prior
to
the
May
28
effective
date.

This
announcement
in
the
latest
in
a
series
of
actions
HUD
has
announced
in
pursuit
of
greater
climate
resiliency.
On
Thursday,
HUD
detailed
a

slew
of
actions
and
initiatives
it
has
undertaken
to
bolster
climate
resiliency
while
supporting
green
housing
initiatives
that
stem
from
Inflation
Reduction
Act
funding.
It
also
recently
announced
plans
to

combat
the
effects
of
extreme
heat.

Related