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HUD, USDA Rescind Rule Tying New Homes to 2021 Energy Code

HUD and USDA rescind the 2024 rule tying FHA/USDA loans to the 2021 IECC for new homes.
The change reverts to energy standards in effect prior to the 2024 determination.
HUD Secretary Scott Turner cited the 2021 IECC as onerous and burdensome.
Turner said the rule would have added about $20,000–$31,000 in costs to a home.
USDA Secretary Brooke Rollins tied the rule to affordability and rural housing.
The agencies paused enforcement in 2025 to solicit stakeholder feedback.
NAR comments supported flexibility in energy efficiency while avoiding stringent mandates.
The 2021 IECC became applicable to FHA/USDA in 2024; the change reverses that.
The determination was issued after a joint review by HUD and USDA.
The announcement did not eliminate all energy efficiency requirements.

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