HUD and USDA Scrap Green Building Rules for Cheaper Homes
Published Date: 5/1/2026
Notice
Summary
HUD and USDA just canceled the new energy-saving rules for homes they help pay to build, effective May 1, 2026. This means builders and developers won’t have to follow those tougher energy standards anymore, which could affect how new affordable homes are made. The change might save some upfront costs but could slow down energy savings in the long run.
Analyzed Economic Effects
1 provisions identified: 1 benefits, 0 costs, 0 mixed.
HUD/USDA Cancels New Energy Codes
If you build or buy new housing financed by HUD or USDA, the Agencies canceled the April 26, 2024 Final Determination adopting the 2021 IECC and ASHRAE 90.1-2019 energy standards. The rescission is effective May 1, 2026, returns covered programs to the energy standards that were in effect immediately before the April 26, 2024 Final Determination, and also rescinds the related extension notices dated March 10, 2025; April 4, 2025; and November 10, 2025.
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