Campaign for Lower Home Energy Costs

On July 1 the Campaign to Lower Home Energy Costs launched a clock to call attention to the fact that the Federal Housing Finance Agency (FHFA) has not yet made a critical decision that would lower energy costs for homeowners by almost $1,000 per year for new single-family homes.

FHFA Director Thompson testified to Congress that she would probably make a decision by the end of the second quarter, but has not yet done so. Every day without a decision leaves more homeowners with higher energy bills.

Action by FHFA would follow the Department of Housing and Urban Development (HUD) and Department of Agriculture (USDA) which made the recent determination to require new homes they back to meet the latest building energy codes, which will result in hard-working Americans across the country benefiting from significantly reduced energy costs.

According to the analysis by the Pacific Northwest National Laboratory, HUD’s recent determination will cut energy costs in single-family homes by almost $1,000 per year, Accounting for the monthly savings and costs, families will put almost $400 back in their pockets every year, saving almost $15,000 after financing over a 30-year mortgage. In addition, in new multifamily housing that is four stories and above, these standards will save households more than $200 per apartment per year, with 30-year net savings of almost $6,000. The initial outlay (in adjusted down payment and financing) is returned in less than two years.

“A decision from the Federal Housing Finance Agency would help homeowners who are unfortunately carrying the burden of paying higher energy bills than they should – to the tune of thousands of dollars,” said Mark Kresowik, Senior Policy Director, American Council for an Energy-Efficient Economy (ACEEE). “We are calling on FHFA to act now. Updating our energy codes would lower costs for hundreds of thousands of Americans every single year.”

Last week, homebuilders from Minnesota, North Carolina, and Virginia held a press call to urge the Federal Housing Finance Agency (FHFA) to ensure new homes and apartments with mortgages purchased by Fannie Mae or Freddie Mac are built to updated energy codes. The action would lower costs and make housing safer, healthier, and more resilient for homeowners across the country.

In June, advocates, homebuilders, and building experts gathered for a National Day of Action and lobby day. These experts and advocates contacted U.S. Senators and Representatives to highlight the critical need to address home energy costs. This advocacy comes on the heels of a recent letter by 125 affordable housing, consumer, energy, health, manufacturing, and environmental organizations urging the Federal Housing Finance Agency (FHFA), to require homes with mortgages backed by Fannie Mae and Freddie Mac to meet modern energy code requirements.

A group of U.S. Representatives along with Senators including Jeanne Shaheen (D-N.H.) and Chris Van Hollen (D-M.D.) have also recently called upon FHFA to act.