Many multifamily housing developers are concerned about plans by the Biden administration to mandate all new homes to be built to the latest energy codes as a requirement for certain federal home loan programs, according to a new survey.
The Department of Housing and Urban Development (HUD) and Department of Agriculture (USDA) said earlier this year they would require all HUD- and USDA-financed new single-family construction housing to be built to the 2021 International Energy Conservation Code (IECC) and HUD-financed multifamily housing be built to 2021 IECC or ASHRAE 90.1-2019 standard, the commercial energy code used by larger multifamily buildings.
In its latest Multifamily Market Survey (MMS) of multifamily housing builders and developers, NAHB asked a series of special questions about the new energy code rules and the impact they will have on the market.
When asked about the impact the move will have on their development, 56% of respondents said that the rules would dissuade them from pursuing some projects due to higher costs.
Another 44% of respondents said that the requirement to follow the 2021 IECC/ASHRAE 90.1-2019 would cause them to charge higher rents.
The new rule, which goes into effect for multifamily properties in May 2025.
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