The National Association of Home Builders (NAHB) and 15 state attorneys general have filed a complaint in the Eastern District of Texas seeking to stop the U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of Agriculture (USDA) from adopting the 2021 International Energy Conservation Code (IECC) and ASHRAE 90.1-2019 as the minimum energy-efficiency standards for certain single-family and multifamily housing programs.
NAHB Chairman Carl Harris, a custom home builder from Wichita, Kan., issued the following statement on the lawsuit:
“Compliance with the 2021 IECC can add more than $22,000 to the price of a new home, but in practice, home builders have estimated increased costs of up to $31,000. Along with 15 state attorneys general, NAHB is the only private entity in this lawsuit seeking to halt HUD and USDA from adopting the 2021 IECC because homebuilders can document how this egregious regulation will needlessly raise housing costs and hurt the nation’s most vulnerable home buyers and renters. This ill-conceived policy will act as a deterrent to new construction at a time when the nation desperately needs to boost its housing supply to lower shelter inflation costs. It is also in direct conflict with the current energy codes in the majority of jurisdictions around the country.
“Our lawsuit seeks to show that granting HUD and USDA authority to insure mortgages for new single-family homes and apartments only if they are built to the 2021 IECC or ASHRAE 90.1-2019 was done in an unconstitutional manner.”
View the litigation here.
My Take: Tone deaf would best describe this latest action by HUD. The challenges to providing more affordable housing options just seem to be piling up quicker than answers can emerge. I agree that striving to preserve and elevate energy efficiency is worthy, but there is a balance to be achieved here that no one is taking into account. In this case, government agencies are ratcheting up an already tight regulatory framework, which of course adds to the cost of a home, and obliterates another group of those who could have come close to getting into a home. I’m certainly rooting for our industry partners at the federal level to prevail in their efforts to overturn what seems to be well-meaning but is in actuality an ill-conceived regulation.
Back on November 12, 2024 our Two For Tuesday newsletter first made REALTORS® aware that the Beneficial Ownership Information report’s deadline for filing was looming. And even though it smacks of government overreach, the consequences of missing it are far reaching. It was moved to January 1, then to January 13. But now litigation and confusion are making the actual deadline hard to pinpoint. In addition to the controversy, including but not limited to at least 6 lawsuits pending against the order, this Two for Tuesday is again dedicated to keeping you in the know.
The changing details of the deadline imposed regarding the Beneficial Ownership Reporting Guidelines as part of the Corporate Transparency Act are becoming constant. Here at REBIC we publish these new links for two reasons. First, we’re trying to make sure you don’t get ‘tripped up,’ for lack of a better term, when they finally publish the date to file your report. Secondly, this issue is stirring up a storm of controversy which means getting more educated helps you see the scope of what advocacy partners like NAHB, NAR, and REBIC are working to curb. As we try and tackle the issues around providing housing to more of the work force segment, and ease the regulatory burden on the homebuilding industry, this clearly demonstrates how policymakers are still the biggest roadblock to resolution.
NC REALTORS® Article – Recent Developments Involving the Corporate Transparency Act
NAHB reports on Beneficial Ownership Reporting Requirements Back on Hold – For Now
My Take: An act that was designed to curb money laundering and other illegal activities has resulted in a new reporting requirement that could result in a “gotcha” moment for a lot of business owners. I’m hopeful that this will be resolved, and soon, so we can focus our time, resources, and imagination on solving the real challenges, not the ones generated by fear of what might happen.
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