Utah AG Sean Reyes and Texas AG Ken Paxton Lead 15 States and National Home Builders in Challenge to HUD and USDA Policies Making Housing Less Affordable

January 2, 2025

SALT LAKE CITY, UTAH—Utah Attorney General Sean D. Reyes and Texas Attorney General Ken Paxton are co-leading 15 states and the National Association of Home Builders to challenge radical energy efficiency standards that undercut affordable housing. The filing against the US Department of Housing and Development (HUD) and the US Department of Agriculture (USDA) details how both agencies are harming Americans, particularly low-income and first-time homebuyers. The standards are so cost-ineffective that the International Code Council (ICC) and the American Society of Heating, Refrigerating, and Air-Conditioning Engineers (ASHRAE) have already partially rolled them back, a fact that seems lost on the current administration and agencies.

“Even as our nation prepares to transition to a new administration, the outgoing HUD and USDA offices are committed to inflicting unwanted and unneeded cost increases on Americans who are already struggling to pay their bills, provide for their families, and secure a brighter future for their children,” said General Reyes. “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. For the last 11 years, I have fought federal overreach in nearly every aspect of our lives. As one of my last actions as AG, I am grateful for another chance to lead this fight to protect hard-working Utahns and all Americans.”

HUD and USDA concede the standards will cost up to $8,345 for each covered new home. But estimates by industry professionals show the actual costs are far higher—up to $31,000 per new home. HUD and USDA project that over 161,000 new units of single-family housing and more than 17,000 new units of multi-family housing will be affected every year. The agencies concede the new standards will drive down production of affordable housing at a time when middle-class families are finding homeownership out of reach and homelessness is at an all-time high.

The state attorneys general seek a declaration that Section 109 of the Cranston-Gonzalez Act is unconstitutional to the extent it delegates to the International Code Council or ASHRAE the authority to set energy efficiency standards for covered housing, a declaration that the 2024 Final Declaration is arbitrary, capricious, an abuse of discretion, and contrary to law, and an order enjoining Defendants from applying energy efficiency standards to covered housing where such standards are not consistent with the constitutional provisions of Section 109 of the Cranston-Gonzalez Act.

Joining Utah and Texas on this lawsuit are the States of Alabama, Arkansas, Idaho, Indiana, Iowa, Kansas, Louisiana, Missouri, Montana, Nebraska, South Carolina, Tennessee, and West Virginia, as well as the National Association of Home Builders.

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The case is captioned State of Utah v. Todman, 6:25-cv-1; it is pending in the Eastern District of Texas; it is pending in the Eastern District of Texas. Utah is represented by AG Reyes and designated attorney(s) within his office; the various plaintiff states are represented by their Attorneys General and designated attorneys; and NAHB is represented by Scott St. John

Read the challenge here.