(The Center Square) – A group of U.S. senators are urging the Federal Housing Finance Agency to implement stricter energy efficiency standards on new federally-backed homes.
U.S. Sens Chris Van Hollen, D-Md., Jeanne Shaheen, D-N.H., Cory Booker, D-N.J., Ed Markey, D-Mass., Bernie Sanders, I-Vt., Elizabeth Warren, D-Mass., and Peter Welch, D-Vt., wrote a letter to Sandra Thompson, director of FHFA, urging the agency to set minimum energy efficiency standards on new homes, which were built using “loans backed by government-sponsored enterprises,” including Fannie Mae, Freddie Mac and Ginnie Mae.
The senators say Thompson indicated the agency would implement standards “this summer,” which was in response to a question posed by Van Hollen during a spring hearing of the Senate Banking, Housing and Urban Affairs Committee.
The senators say the agency has failed to take such action. The group requests Thompson to provide an updated timeline on the decision while “calling on FHFA to act swiftly in order to improve home energy efficiency,” claiming the action will “ultimately” save American homeowners and renters money.
“We are writing to urge the Federal Housing Finance Agency to phase in a minimum energy efficiency standard for Enterprise-backed mortgages on new homes. Such a standard would save homeowners and renters money and make the housing market more consistent and stable,” the senators wrote.
“When asked at a hearing of the U.S. Senate Committee on Banking, Housing, and Urban Affairs last April, you indicated an intention to make a decision about this potential action on or about the end of the second quarter. As we are now rapidly approaching the end of the third quarter, we respectfully request an update on your intended timeline for a decision and for the Enterprises to begin implementation,” the senators continued.
The senators say aligning the new home energy standards with updated model codes will save homeowners and renters money nationwide. They also say Housing and Urban Development and the U.S. Department of Agriculture have found that “increased initial costs of construction are more than made up for by lower monthly energy costs.”
In addition, the group says the updated codes will “save lives” during power outages that occur during cold snaps or heat waves and could “yield better indoor air quality” by reducing exposure to dangerous pollutants that negatively impact health.
The senators cited the Infrastructure Law and Inflation Reduction Act, which they say provided over $1.2 billion in federal funding to assist localities and states to update building codes. They claim multiple local and state governments have already adopted the updated building codes.
The senators concluded that the letter is supported by groups such as Americans for Financial Reform, the Rocky Mountain Institute and the National Electrical Manufacturers Association.
