A recent court decision in a case brought by NAHB and 15 states challenging federal energy code mandates is a major win for our members, housing affordability and common-sense regulations.

The United States District Court for the Eastern District of Texas ruling in NAHB’s case prevents the Department of Housing and Urban Development (HUD) and Department of Agriculture (USDA) from implementing their final determination to impose the 2021 International Energy Conservation Code (IECC) and the 2019 ASHRARE 90.1 standard on certain single-family and multifamily housing programs.

Studies show that HUD and USDA’s final determination to adopt these energy efficiency standards will add between $9,600 and $21,400 to the price of a new home depending on the climate zone. To make matters worse, the payback period for these added investments can stretch as long as 90 years, leaving home owners to shoulder costs they will likely never recover. This energy codes mandate would also have resulted in decreased production and longer permitting and construction times, further exacerbating the nation’s housing affordability challenges.

In NAHB’s case filed with 15 state attorneys general before the federal District Court of Texas, the court agreed with the assertion that HUD and USDA’s adoption of the energy efficiency standards will decrease housing availability and thus is 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,” said NAHB Chairman Bill Owens.

NAHB has been working tirelessly on the legal, regulatory and legislative fronts to ensure HUD and USDA’s 2021 IECC mandate was never implemented. Prior to our legal victory, NAHB convinced HUD to wait until Dec. 31, 2026, to implement the 2021 IECC and ASHRAE 90.1-2019 as the minimum energy-efficiency standards for certain housing programs. NAHB has also been working to get legislation introduced to prevent HUD and USDA from ever implementing these energy code standards.