January 4, 2025 – A coalition led by Utah Attorney General Sean D. Reyes and Texas Attorney General Ken Paxton, including 15 states and the National Association of Home Builders, has taken legal action against the U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of Agriculture (USDA), challenging new energy efficiency standards they believe will exacerbate the affordability crisis in housing, according to the Utah Office of the Attorney General.
Claiming that these standards will impose undue financial burdens on American families, particularly those with lower incomes or purchasing their first homes, the involved state attorneys general argue that while aiming to transition to a more environmentally conscious framework, the policies in question have neglected to weigh the considerable costs and their impact on home affordability, it’s a point of contention that pits sustainability goals against the reality of economic struggle for many. “Our multi-state action, in collaboration with the National Association of Home Builders, is urgently seeking a roll-back on the radical environmental agendas that, if not changed, will devastate the American dream of home ownership,” Reyes stated, as obtained by the Utah Office of the Attorney General.
Both HUD and USDA have acknowledged that the enforcement of these standards could hike the construction cost by as much as $8,345 per new home, however, industry experts contend that the expenses could soar to $31,000 per dwelling, all these measures are expected to impact hundreds of thousands of new homes annually, potentially decreasing the output of affordable housing just as the nation grapples with historically high levels of homelessness and an ownership market that’s increasingly slipping away from the grasp of average Americans.
The legal filing seeks specific relief, including a declaration that Section 109 of the Cranston-Gonzalez Act is unconstitutional to the extent it delegates authority to non-governmental bodies in setting energy efficiency standards, furthermore, it calls the 2024 Final Declaration arbitrary, capricious, an abuse of discretion, and contrary to law, and seeks an injunction preventing HUD and USDA from applying the challenged energy standards lacking consistency with said constitutional provisions.
Alabama, Arkansas, Idaho, Indiana, Iowa, Kansas, Louisiana, Missouri, Montana, Nebraska, South Carolina, Tennessee, and West Virginia are among the states that have joined Utah and Texas in this lawsuit, which carries the case name State of Utah v. Todman and is being heard in the Eastern District of Texas with representation for Utah by AG Reyes and his team, each state represented by their respective Attorneys General and the National Association of Home Builders by Scott St. John.
By Owen Matthews, Hoodline
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