Rules that require buildings to meet the latest energy codes to qualify for certain federal home loan programs have raised some concerns among multifamily housing developers.

A directive earlier this year from the Department of Housing and Urban Development (HUD) and the Department of Agriculture (USDA) would require all single-family construction financed by the agencies to be built to the 2021 International Energy Conservation (IECC). HUD-financed multifamily housing needs to be built to 2021 IECC or ASHRAE 90.1-2019 standard, which is the energy code used by larger multifamily buildings. HUD and USDA said the directive would save homeowners and renters money by lowering utility bills, and it determined that 2021 IECC and ASHRAE 90.1-2019 will not negatively affect the affordability and availability of housing covered by the Energy Independence and Security Act of 2007 (EISA).

However, more than half of respondents to a National Association of Home Builders (NAHB) survey of multifamily housing builders and developers said they believe the rules will dissuade them from pursuing some projects due to higher costs, and 44% of respondents said the requirement will cause them to charge higher rents.