HUD rescinds energy rule for new construction

[william]

A 2024 rule under the Biden administration had made new homes ineligible for FHA or USDA mortgages unless they complied with the 2021 International Energy Conservation Code (IECC), which imposed stricter building standards.

“If a home was to receive an FHA or USDA mortgage, it was deemed ineligible if it did not comply with the IECC,” Turner said. “Today, I am rescinding this onerous rule because it literally can bring an increase of $20,000 to $31,000 per single-family project," opening marketS to more FHA, USDA buyers

HUD rescinds FHA, USDA energy efficiency rule for new homes

HUD Secretary Scott Turner rescinded a 2024 rule tying FHA and USDA new construction loans to 2021 IECC compliance.

www.housingwire.com

 

[Friendly Engineer]

In the short term it'll bring down housing cost, but in the long term the cost will be greater from extra energy usage.

 

[teekay99]

In the short term it'll bring down housing cost, but in the long term the cost will be greater from extra energy usage.

My right-libertarian bias compels me to respond as follows:

The US government should not be involved in the mortgage business (FHA and USDA loans are government backed). They might make homes more attainable for qualified borrowers in the short run. But they increase the overall cost in the long run as the cost of government backing is spread out across all tax payers. Additionally, that cost is heaped into the national debt, accumulating interest year over year. We're stealing from our posterity.