Central Louisiana News

U.S. Senators Bill Cassidy, John Thune, Tim Scott, John Barrasso, John Boozman, and several other Republican colleagues have written a letter urging the U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of Agriculture (USDA) to abandon their proposal to impose unrealistic and burdensome energy efficiency standards on new single and multifamily homes. The senators argue that these standards would reduce the supply of new housing, increase costs for residential contractors, and disproportionately affect low-income households.

The senators expressed their concerns in the letter, stating, "Over the last few years, the Biden administration has demonstrated a reckless commitment to forcing its unrealistic environmental agenda onto various aspects of the economy...So it is not at all surprising that the administration is now forcing its agenda onto families purchasing or renting a home, all while admitting that 'lower-income households...may be challenged in their ability to address first costs.'"

They further requested that the Biden administration "conduct an honest evaluation as to how adoption of the revised international energy conservation code (IECC) and American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE) standards would increase costs and give special attention to the effect adoption would have on lower-income families."

The senators argue that the adoption of these energy efficiency standards would impose significant costs on American households, particularly low and moderate-income families, and put additional strain on an already limited housing supply.

They criticized HUD and USDA for incorrectly concluding that the availability or affordability of housing would not be negatively impacted by the revised standards. The agencies rely on a study that optimistically assumes a mortgage interest rate of three percent, despite the fact that current mortgage rates are much higher. The senators also pointed out that the agencies acknowledge that new construction for federal housing administration borrowers would decline if the revised standards are adopted and suggest that borrowers should seek conventional loans or purchase existing homes with similar qualities.

The senators underscored the fact that the cost of purchasing and renting a home has already increased significantly in recent years, particularly for lower-income families. They argue that the introduction of these energy efficiency standards would exacerbate the problem. They noted that smaller and more affordable single-family homes represent only a small fraction of new construction, and rental units are becoming increasingly unaffordable for lower-income households. The senators emphasized that the supply of lower-cost rentals is consistently declining.

In conclusion, the senators called on HUD and USDA to abandon their proposal and conduct a thorough evaluation of the potential costs and impact on lower-income families. They urged the Biden administration to reconsider its push for unrealistic and costly energy efficiency standards that would further burden American households and hinder the already limited housing supply.

To learn more, click on this link: https://www.cassidy.senate.gov/newsroom/press-releases/cassidy-joins-effort-to-urge-biden-administration-to-abandon-unrealistic-costly-energy-efficiency-standards