Nebraska Attorney General Mike Hilgers has joined a coalition of 15 states, led by Utah Attorney General Sean Reyes and Texas Attorney General Ken Paxton, along with the National Association of Home Builders, to challenge new energy codes that could increase housing costs. The coalition is contesting the constitutionality of Section 109 of the Cranston-Gonzalez Act, which allows the Department of Housing and Urban Development (HUD) and the Department of Agriculture (USDA) to delegate authority to private organizations to establish energy efficiency standards for homes nationwide. Critics argue that these private groups, which are unelected, should not have the power to set regulations impacting such a large portion of the nation’s housing.
The lawsuit also opposes the adoption of updated energy standards by these agencies. Federal estimates suggest the new regulations could add up to $8,345 to the cost of a new home, while industry professionals warn the actual costs could be as high as $31,000 per home. The regulations are expected to impact more than 161,000 single-family homes and 17,000 multi-family housing units annually.
Hilgers emphasized the negative impact on housing affordability, stating, “We have an affordability crisis in the home market. These codes will only make things worse by inflating costs and decreasing production of needed housing. Nebraskans didn’t elect these groups to make these decisions, and they should not be allowed to push the dream of owning a home further out of reach.”
In addition to Nebraska, the coalition includes Alabama, Arkansas, Idaho, Indiana, Iowa, Kansas, Louisiana, Missouri, Montana, South Carolina, Tennessee, West Virginia, and the National Association of Home Builders. The case is currently being heard in the Eastern District of Texas.
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