Indiana Attorney General Todd Rokita has joined 15 states and the National Association of Home Builders (NAHB) in a lawsuit challenging new federal energy standards for home construction. The group argues that these regulations, introduced by the U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of Agriculture (USDA), could significantly increase housing costs for Indiana residents.
The NAHB estimates that compliance with the new rules could add up to $31,000 to the price of a new home. They also state that it could take up to 90 years for buyers to recover these costs through energy savings. According to their analysis, every $1,000 increase in median home price prevents more than 100,000 American households from being able to afford a home.
The federal standards require all HUD- and USDA-financed single-family homes to meet the 2021 International Energy Conservation Code (IECC) and ASHRAE 90.1-2019 requirements. Both agencies have acknowledged that these changes may reduce affordable housing production at a time when many families are already struggling with rising housing prices.
Attorney General Rokita said, “As a conservative, I love efficiency and would note that one cannot be a true ‘conservative’ without being willing to ‘conserve’ God’s green earth. But over-regulation, that doesn’t yield meaningful results and comes with wild costs, is a bad deal that common sense Hoosiers should reject.” He continued: “In their name, we are rejecting this latest liberal crackpot whim with this lawsuit that if successful will help keep already terrible home ownership and rental costs from going through the roof. We’re seeing it more and more. We will continue standing up for homeowners and renters and fighting back against federal overreach.”
Rokita expressed gratitude toward the Indiana Builders’ Association (IBA) for raising concerns about the policy’s impact on local builders. Rick Wajda, CEO of IBA, said the regulation conflicts with existing energy codes in most jurisdictions nationwide and could discourage new construction when increased supply is needed to control shelter inflation.
“At a time when Hoosiers are struggling to qualify for a mortgage or make a rent payment, this federal policy is the last thing our potential customers need,” Wajda said. “For every $1,000 increase in the cost of a house in Indiana, over 1,900 Hoosier households are priced out of the market. We need to reduce barriers to housing, not increase them. The Indiana Builders Association appreciates the efforts of Attorney General Rokita to stop these onerous costs being put on Hoosier homebuyers and renters.”
A copy of the lawsuit has been filed.
