HUD announces new energy standards for affordable housing
Author
Julia Cortina
Charlotte Mitchell Duyshart
Upcoming Events
Related News
Key Takeaways
On April 24, the U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of Agriculture (USDA) announced the adoption of new energy-efficiency standards for the construction of new single and multifamily homes. The standards will apply to new construction under several HUD and USDA programs and will go into effect on May 28, 2024.
What are the new standards?
The new standards fulfill a requirement from the Energy Independence and Security Act of 2007 (P.L. 110-40) that directs HUD and USDA to adopt the most recently published energy-efficient standards that are supported by the
- International Energy Conservation Code (IECC)
- American National Standards Institute (ANSI)
- American Society for Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE)
- Illuminating Engineering Society (IES)
HUD and USDA have not updated their energy efficiency standards since 2015 and this action will bring them back into compliance with the statute.
Highlights of this action include:
- The new standards apply to new construction financed through the HOME Investment Partnerships Program, Project Based Vouchers, Choice Neighborhood Grants, USDA Direct and Guaranteed Home Loan programs, the Housing Trust Fund and more.
- Community Development Block Grant (CDBG)-financed housing is excluded from these standards.
- In persistent rural poverty areas, compliance with the new standards will be required 24 months after the May 28 start date.
How will counties and our residents be impacted?
- As of December 2023, six states (California, Washington, Connecticut, New Jersey, Vermont, and Illinois) have already adopted the 2021 IECC, and five states (Florida, Louisiana, Montana, Maryland, and Oregon) adopted the 2021 IECC with weakening amendments.
- Housing will generally have more insulation in the walls and roofs, better air sealing and windows, more energy-efficient heating and cooling systems, and reduced pollution.
- HUD and USDA estimate that code compliance costs from this rule on average will add approximately $37 to monthly mortgage payments, but save homeowners $80 a month on monthly energy bills, resulting in a yearly savings of $524.
Additional Resources
Advocacy
DOE announces competitive Energy Efficiency and Conservation Block Grant Program funding
Competitive portion of EECBG Program now open, with concept papers due by June 5
Resource
Housing Affordability for America's Counties
Related News
NACo launches 2026 Rural Energy Academy Cohort to support county decision-making on new energy projects
NACo announces the launch of the 2026 Rural Energy Academy technical assistance cohort.
U.S. Department of the Interior issues new NEPA regulations recognizing local governments as cooperating agencies
On February 23, the U.S. Department of the Interior (DOI) announced a final rule updating the Department’s regulations for implementing the National Environmental Policy Act (NEPA; P.L. 91-190). In a step forward for counties, the final rule reinstates provisions that name local government agencies as cooperating agencies during the NEPA environmental review process.