Indiana challenges new federal rule that pushes Hoosiers further away from owning their own home

Submitted by Office of the Attorney General

Rokita

Indiana Attorney General Todd Rokita is partnering with 15 states and the National Association of Home Builders (NAHB) to challenge new energy standards that they say will make the American Dream of homeownership unattainable for many hardworking Hoosier families.

According to the NAHB, new standards from the U.S. Department of Housing and Urban Development (HUD) and U.S. Department of Agriculture (USDA) can add up to $31,000 to the price of a new home and take up to 90 years for a home buyer to realize a payback on the added cost of the home. For every $1,000 increase in the median price, more than 100,000 American households are priced out of being able to buy that home.

Even the agencies concede that by requiring all HUD- and USDA-financed new single-family home construction to meet the 2021 International Energy Conservation Code (IECC) and ASHRAE 90.1-2019, they will drive down production of affordable housing at a time when lower- and middle-class families are finding homeownership out of reach.

“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,” AG Rokita said. “But over-regulation, that doesn’t yield meaningful results and comes with wild costs, is a bad deal that common sense Hoosiers should reject. 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.”

AG Rokita thanked the Indiana Builders’ Association (IBA) for bringing this issue to his office. Rick Wajda, CEO of the IBA, said this ill-conceived policy will act as a deterrent to new construction at a time when Indiana and the nation desperately needs to boost its housing supply to lower shelter inflation costs. It is also in direct conflict with the current energy codes in the majority of jurisdictions around the country.

“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.”

Click here to read the lawsuit.