New-home efficiency rule gets the axe
The rule would have required that gas furnaces and heat pumps meet certain energy efficiency standards, and also included requirements for duct sealing and air leakage
Image: Wikimedia Commons
The U.S. Department of Housing and Urban Development (HUD) and the Department of Agriculture last week rescinded a rule that would have required certain newly built homes to meet stricter energy efficiency standards.
Catch up quick: A rule finalized in 2024 under the Biden administration rendered all new-construction homes ineligible for FHA or USDA-backed mortgage loans unless they were built according to the 2021 International Energy Conservation Code (IECC).
- It would have required that gas furnaces and heat pumps meet certain energy efficiency standards, and also included requirements for duct sealing and air leakage.
What’s happening: The National Association of Home Builders (NAHB) and 15 state attorneys general sued, and a federal court in March vacated the standards.
- Last week’s announcement by HUD and the USDA officially rescinds the 2024 Final Determination in its entirety.
What they’re saying: “Research shows that adopting these standards could have added between $9,600 and $21,400 to the price of a new home, depending on the climate zone,” Bill Owens, chairman of NAHB, said in a statement.
Yes, but: At least five states — California, Washington State, Vermont, New Jersey, and Connecticut — have adopted the 2021 IECC or its equivalent.
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