HUD and USDA jointly rescinded the “Final Determination: Adoption of Energy Efficiency for New Construction of HUD- and USDA-Financed Housing” published April 26, 2024.
This rule required all new single family and multifamily construction to meet stricter energy-efficiency standards (specifically the 2021 International Energy Conservation Code and ASHRAE 90.1) in order to qualify for FHA or USDA loans.
Why This Matters: Because the standards have been rescinded (and were also struck down in court earlier this year after a lawsuit from 16 states and the National Association of Home Builders), new construction can again qualify for these loans under the pre-2024, less strict energy standards.
