On April 29, Secretary Scott Turner and Secretary Brooke Rollins announced the rescission of a Biden Administration-era policy affecting new home construction. The 2024 Final Determination rendered new home construction ineligible for FHA or USDA-backed mortgage loans unless the home was built according to the 2021 International Energy Conservation Code (IECC) – a standard which has only been adopted in a few states.
“By rescinding this mandate, we are removing a significant regulatory barrier that added tens of thousands of dollars to the cost of a new home,” said Secretary Turner.
“Affordable rural housing is a top priority for the Trump Administration, and we are focused on removing all the unnecessary restrictions that artificially drive up new home prices,” said Secretary Rollins. “We launched the Rural Revival Agenda at USDA to bring rural communities to the forefront of our actions, and this joint determination restores common sense to our programs and ensures that we can continue bringing new affordable housing supply online for Americans.”
Since taking office, the Trump Administration has delayed the compliance date for the 2024 Final Determination. The Joint Determination rescinds the 2024 Final Determination in its entirety. As a result, the FHA and USDA loan programs will comply with the energy efficiency standards that were in effect prior to the publication of the 2024 Final Determination. This determination is also in alignment with a recent ruling from the U.S. District Court for the Eastern District of Texas which found that the Biden-era determination would decrease housing availability.
Read the Final Determination here.
Read the joint press release here.