Texas – Along with officials from the states of Alabama, Arkansas, Idaho, Indiana, Iowa, Kansas, Louisiana, Missouri, Montana, Nebraska, Tennessee, and West Virginia, South Carolina Attorney General Alan Wilson has strongly opposed new federal energy efficiency rules in a major legal fight influencing the direction of homeownership in America. Especially for low-income and first-time homebuyers, Wilson warns that these rules might have disastrous consequences for affordable housing.
The recently adopted criteria in the focus
The dispute arises out of recently adopted criteria meant to encourage energy efficiency in new house construction by the U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of Agriculture (USDA).
These criteria have been criticized, meanwhile, for being financially unworkable. In response, Wilson has joined forces with a coalition of 15 states and the National Association of Home Builders to challenge these regulations in court.
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The coalition’s case relies mostly on its belief that the “misguided energy mandates” of the federal government constitute an overreach that negatively impacts regular Americans by raising the cost of new houses.
“By imposing unnecessary costs, these policies put the dream of homeownership out of reach for too many families, particularly those who are already struggling,” Wilson stated. “South Carolina stands with our coalition to fight back against these burdensome regulations and protect affordable housing for all.”
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Prospective homeowners will have to pay about $30,000 per house more
Filings suggest that the additional expenses could be as high as $31,000 per new house, much above the stated projections of up to $8,345.
Formally referred to as Utah v. Todman, this legal issue resides is currently pending in the Eastern District of Texas. The case challenges not only the feasibility of these rules but also the constitutional power of the entities like the American Society of Heating, Refrigerating, and Air-Conditioning Engineers (ASHRAE) to establish such criteria.
Under Section 109 of the Cranston-Gonzalez Act, the group claims that such delegated authority could be unlawful and should not let non-governmental organizations control federal housing standards.
The number of newly build affordable homes across the nation at risk
The complaint goes on to say that the application of these criteria would dramatically lower the creation of affordable homes. HUD and USDA admit that the rules will impact almost 178,000 new homes every year—single-family and multi-family residences included. The drop corresponds with a period when many middle-class families find homeownership increasingly unattainable and the demand for affordable housing is more pressing than ever.
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Under the direction of the states of Utah and Texas and comprising Alabama, Arkansas, Idaho, Indiana, Iowa, Kansas, Louisiana, Missouri, Montana, Nebraska, Tennessee, and West Virginia, the coalition seeks a court decision to prevent the implementation of these energy efficiency rules. The standards, they claim, are arbitrary, unpredictable, an abuse of discretion, and against the law.
The National Association of Home Builders joins the legal action
There is extensive legal representation in the legal action; each participating state is represented by an Attorney General and assigned attorney. Represented by attorney Scott St. John, the National Association of Home Builders has also joined the challenge, therefore signifying the general concern across many spheres about the effects of these rules.
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The result of this legal action might have major ramifications for federal regulatory authorities, the building sector, and thousands of prospective homebuyers throughout the nation as the legal proceedings unfold. Should the coalition win, it could lead to a review of how housing laws apply energy efficiency criteria to guarantee they do not unfairly burden the Americans they are supposed to help.
Read the challenge here.
