HUD and USDA’s Six-Month Delay on Enforcing 2021 IECC Rule A Win for Housing

Codes and Standards
Published

This post has been updated.

In a win for NAHB and the housing industry, the Trump administration has announced a six-month delay in the implementation of the Biden administration’s mandatory energy code, an important step forward to help ease the nation’s housing affordability crisis.

Specifically, the Department of Housing and Urban Development (HUD) and Department of Agriculture (USDA) will wait an additional six months before enforcing the compliance dates for 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.

“This six-month pause by HUD and USDA is an important step forward to help ease the nation’s housing affordability crisis,” said NAHB Chairman Buddy Hughes. “Compliance with this rule would make it much harder for home builders and multifamily developers to build housing that is available and affordable for American families.

In fact, the Home Innovation Research Labs has found that compliance with the 2021 IECC can add more than $20,000 to the price of a new home, but in practice, home builders have estimated increased costs of up to $31,000.

The updated compliance dates are as follows:

Program Initiation Event Compliance Date
HOME and HTF

(If HOME/HTF funding is layered with other HUD funds, the later program compliance date applies)
Participating Jurisdiction (PJ) or HTF Grantee Funding Commitment Nov. 28, 2024
Federal Housing Administration-Insured (FHA-Insured) Multifamily Pre-application Submitted to HUD Nov. 28, 2025
FHA-Insured Single Family Building Permit Application May 28, 2026
Public Housing Capital Fund HUD approvals of development proposals for new Capital Fund or mixed financed projects Nov. 28, 2025
Project Based Vouchers To be determined in further guidance April 1, 2026
Competitive Grants (Choice Neighborhoods, Section 202, Section 811) Notice of Funding Opportunity (NOFO) Publication Next published NOFO after six months from the date of publication of this notice
All programs, persistent poverty rural areas Based on program-specific event, above May 28, 2026
Rental Assistance Demonstration (RAD) N/A Already effective by Federal Register Notice July 27, 2023

NAHB commends the Trump administration for recognizing the importance of bringing down the cost of housing and will continue to pursue all avenues on the congressional, regulatory and legal fronts to overturn this harmful energy code rule.

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