U.S. Sens. Jerry Moran (R-KS) and Marsha Blackburn (R-TN) joined a contingent of their Republican colleagues in raising concerns about the adoption of revised minimum energy efficiency standards required for home financing that they worry could hamper home ownership for America’s military veterans.
The U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of Agriculture (USDA) announced on April 26 that they would implement the 2021 version of the International Energy Conservation Code (IECC) as the minimum energy efficiency standards they would accept to finance new single and multi-family homes.
The six senators are concerned that if the revised energy conservation standards are also adopted by the U.S. Department of Veterans Affairs (VA), then the availability, affordability, and competitiveness of VA home loans for veterans could be negatively impacted, according to a July 16 letter they sent to VA Secretary Denis McDonough.
“Declining to finance any loans for new homes that do not meet these increased requirements, the agencies put accessible homeownership in jeopardy for thousands of veterans,” they wrote. “Both rental and housing costs have risen at the fastest rates in decades, and any proposals that raise the cost of home building must be meticulously examined.”
Sen. Moran, Sen. Blackburn, and their colleagues pointed out that recent estimates indicate that even a $1,000 increase in home prices would price over 100,000 Americans out of the housing market.
And as mortgage rates hover around 7 percent, they wrote, the revised standards could lead prospective homeowners to pay tens of thousands of dollars more over the course of a 30-year mortgage.
“It is our duty to ensure that veterans have robust access to VA-financed home loans,” wrote the senators, who added that they “look forward to VA’s evaluation of how adoption would impact costs for veteran homebuyers, including the availability, affordability, and competitiveness of VA home loans.”
Their letter has gained support from the National Association of Home Builders.