On April 28, HUD and USDA announced the rescission of an April 2024 final determination that required all new home construction to comply with the 2021 International Energy Conservation Code (IECC) as a condition of eligibility for FHA- or USDA-backed mortgage loans. The agencies stated that, according to some estimates, the 2021 IECC standard, which has been adopted in only a few states, would add between $20,000 and $31,000 to home construction costs, decrease new home production, complicate construction, and lengthen permitting and inspection timelines. The joint determination rescinds the 2024 final determination in its entirety, returning FHA and USDA loan programs to the energy efficiency standards that were in effect prior to the 2024 final determination. The agencies noted the action aligns with a recent ruling from the U.S. District Court for the Eastern District of Texas, which found the prior determination would decrease affordable housing availability.