The U.S. Department of Housing and Urban Development (HUD) announced on Tuesday that the implementation of minimum energy efficiency standards for certain single and multi-family housing projects passed in 2021 will be delayed.
These new standards were based on the 2021 International Energy Conservation Code (IECC) and were originally set to become mandatory starting on May 28, 2026. However, they are now postponed until December 31.
The energy efficiency standards require an increase in attic insulation thickness for about two-thirds of the United States, as well as wall insulation thickness for residences in central regions. Additional insulation is also mandated for concrete board sheathings in various parts of the country, and nearly all residential light fixtures are required to be equipped with dimmer switches or motion sensors for automatic on and off.
The National Association of Home Builders (NAHB) stated in a blog post on the 2nd that their primary mission is to repeal the implementation of new energy efficiency standards for HUD’s affordable housing projects and the financing of single and multi-family projects by the U.S. Department of Agriculture (USDA).
The association claimed that the new energy efficiency standards make it more challenging for builders to construct new homes and increase costs, stating that “compliance with these regulations will make it more difficult for residential builders and multi-family developers to construct homes that American families can afford.”
“In fact, research from the Home Innovation Research Labs shows that complying with the 2021 IECC standards could increase the price of new homes by over $20,000, but builders estimate costs could go up by as much as $31,000,” NAHB stated.
In April 2024, HUD and USDA announced the final decision to adopt new energy efficiency standards for new residential construction (excluding low-rise buildings). In March 2025, both agencies extended the compliance deadline for most of their housing projects adopting the new standards, and in July, they announced a review of the final decision and sought more public input.
HUD mentioned that they had received hundreds of public comments, prompting them to grant more leniency in enforcing the regulations.
In a Federal Register document, HUD stated that the extension is to allow the agency ample time to consider the public feedback received, stating that “the extension for the 8th item of the foundational certification will give the department time to solicit feedback and develop and release more compliance guidance.”
The NAHB stated that they will continue their efforts to ensure that the new building regulations never take effect. The association, along with 15 state attorneys general, filed a lawsuit in the Eastern District of Texas federal court in January 2025 in an attempt to halt the enforcement of the 2021 IECC.
The organization claimed that their lawsuit aims to prove that authorizing HUD and USDA to only provide loans for new single-family homes and apartments that comply with the 2021 IECC or ASHRAE 90.1-2019 standards is unconstitutional.