HUD Goes Green on Homes, But Gives Builders Extra Time
Published Date: 3/10/2025
Notice
Summary
HUD and USDA are raising the energy efficiency standards for new homes they help finance, making buildings greener and cheaper to run. But to give builders more time to adjust, HUD is pushing back the deadlines by six months for most programs and until April 2026 for Section 8 Project Based Vouchers. This means better homes are coming, but with a friendly extra grace period to get it right.
Analyzed Economic Effects
4 provisions identified: 2 benefits, 0 costs, 2 mixed.
New HUD/USDA-Financed Homes Must Meet Updated Codes
HUD and USDA adopted the 2021 edition of the International Energy Conservation Code (IECC) and the 2019 edition of ANSI/ASHRAE/IES Standard 90.1 as the minimum energy standards for new construction in covered HUD programs. These standards now apply to new HUD- and USDA-financed construction once the applicable program compliance date takes effect.
Most HUD Program Compliance Dates Delayed Six Months
HUD delayed the Final Determination compliance dates by six months for FHA-Insured Multifamily, FHA-Insured Single Family, the Public Housing Capital Fund, and Competitive Grants (Choice Neighborhoods, Section 202, Section 811). Example effective dates listed include November 28, 2025 for FHA-Insured Multifamily and Public Housing Capital Fund (18 months after the stated program event) and May 28, 2026 for FHA-Insured Single Family (24 months after the building permit application event).
Section 8 Project-Based Vouchers Compliance Pushed to April 1, 2026
HUD extended the compliance date specifically for Section 8 Project Based Vouchers (PBV) until April 1, 2026 to allow HUD time to seek comment and publish further guidance on PBV compliance.
HOME and HTF Dates Remain, But Layered Funding Follows Later Date
HUD did not change the compliance date for the HOME Investment Partnerships Program (HOME) and the Housing Trust Fund (HTF), which is listed as November 28, 2024, but confirms that HOME/HTF projects that receive layered funding from other HUD funds covered by this notice follow the later (extended) compliance date.
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Key Dates
Department and Agencies
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