Federal

HUD and USDA Rescind Biden-Era Rule They Say Added $20,000 to $31,000 to New Home Costs

The U.S. Department of Housing and Urban Development and the U.S. Department of Agriculture have rescinded a 2024 federal determination that required new homes to meet specific energy code standards to qualify for certain government-backed mortgages, with officials citing increased construction costs and reduced housing availability. The announcement was made Tuesday by Scott Turner and Brooke Rollins, who said the policy had significantly raised the cost of building new homes. The 2024 Final Determination, issued under former President Joe Biden, made newly constructed homes ineligible for Federal Housing Administration or USDA-backed mortgage loans unless they complied with the 2021 International Energy Conservation Code, commonly referred to as the 2021 IECC. According to federal officials, the standard has only been implemented in a limited number of states. Officials said estimates showed that enforcing the 2021 IECC nationwide would increase home construction costs by between ...