HUD announces new energy standards for affordable housing

Author

Image of Julia Cortina.jpg

Julia Cortina

Associate Legislative Director, Human Services & Education | Immigration Advisory Council
Charlotte headshot

Charlotte Mitchell Duyshart

Associate Legislative Director, Environment, Energy & Land Use | Gulf Coast Regional Forum

Upcoming Events

Conference

2026 NACo Energy Symposium

Related News

Home construction

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

Related News

2253192477
Advocacy

Gulf counties receive more than $92 million in revenue sharing from offshore energy projects

On March 27, the U.S. Department of the Interior (DOI)  announced hundreds of millions of dollars in revenue sharing from Gulf energy projects, including more than $92 million which will be distributed directly to 42 coastal counties and parishes and Texas, Louisiana, Alabama and Mississippi. The revenue is generated from offshore oil and gas projects on the federally managed Gulf Outer Continental Shelf, and a portion is redirected to states and counties.

2255951413
Advocacy

Local Plaintiffs win Continuum of Care suit, HUD to restore expired projects

HUD Restores Q1 and Q2 Continuum of Care Projects, as directed by Congress.