NAHB Commends Court Ruling Vacating HUD 2021 IECC Mandate

Bill Owens, chairman of the National Association of Home Builders (NAHB) and a home builder and remodeler from Worthington, Ohio, issued the following statement after the Eastern District Court of Texas issued its decision in a lawsuit brought by NAHB and 15 states challenging the legality of the Department of Housing and Urban Development (HUD) and Department of Agriculture (USDA) rule imposing the 2021 International Energy Conservation Code (IECC) and the 2019 ASHRAE 90.1 standard on certain housing programs:

"The Eastern District Court of Texas ruling in our case preventing HUD and USDA from implementing their final determination to impose the 2021 IECC and 2019 ASHRAE 90.1 standard is a major victory for housing affordability and common-sense regulations. Studies have shown that HUD and USDA's final determination to adopt these energy efficiency standards would have added between $9,600 and $21,400 to the price of a new home depending on the climate zone. This energy codes mandate would have resulted in decreased production and longer permitting and construction times, further exacerbating the nation's housing affordability challenges.

"The court agreed with NAHB and 15 state attorneys general that HUD and USDA's adoption of the energy efficiency standards would decrease housing availability and thus was in violation of the Cranston-Gonzalez National Affordable Housing Act. The court also held that under the Cranston-Gonzalez Act the agencies may only adopt one amendment to the 2006 IECC, which they did in 2015 by adopting the 2009 IECC. This ruling means that HUD and USDA cannot impose new energy code mandates that will raise construction costs and limit access to federal mortgage programs at a time when many American families are already struggling to afford a home."