Effective May 2025: New IECC and ASHRAE Standards
Starting May 26, 2025, all applications for new construction seeking FHA-Insured Multifamily or USDA loans must adhere to the 2021 International Energy Conservation Code (IECC). Additionally, the ASHRAE 90.1-2019 standards will come into effect for applicable properties. These standards aim to enhance building energy efficiency and are part of HUD’s MIP Reduction Loan program.
- IECC 2021 will apply to single-family homes and low-rise multifamily properties that are 3 stories or less
- ASHRAE 90.1-2019 will be required for multifamily structures that are 4 stories or higher
No Changes to Green Building Programs in HUD MIP Applications
The good news amidst these updates is the continuity of recognized green building programs for HUD MIP applications. If your projects are utilizing the National Green Building Standard (NGBS), rest assured, these criteria remain unchanged. This should offer some stability and continuity in planning your future projects.
New Energy Efficiency Benchmarks for Property Design in 2025
While the fundamental requirements for performing a whole property energy model and benchmarking design using the EPA Portfolio Manager tool remain the same, the benchmark for acceptable energy efficiency has been raised. Previously, a score of 75 or higher on the Statement of Energy Design Intent (SEDI) was sufficient. However, under the new rules, properties will now need to achieve a SEDI score of 80 or higher.
Fortunately, our experience in working with 1,241 projects across 25 states (+ Haiti) shows that most properties we handle tend to score in the upper 80s on these models, suggesting that this adjustment may be more of a slight stretch rather than a daunting challenge for many project teams.
Preparing for the New 2025 Energy Efficiency Standards
Stay Informed and Collaborative: Continue to engage with our team at Southern Energy Management, and don’t hesitate to reach if you have any questions or need clarification on the new standards.
Design Accordingly: Make sure your property designs comply with either the 2021 IECC or ASHRAE 90.1-2019, depending on the height and type of your building, to align with loan program requirements.
Plan for Energy Modeling: Allow us to perform energy models early in your design process to gauge how your plans measure up against the new energy efficiency requirements. Learn More →
Keep Your Team Engaged: Utilize the NGBS program and involve your project team members early in the design process. This proactive approach will help ensure that energy code requirements are integrated seamlessly into your project planning.
These updates signify a positive step towards more sustainable and energy-efficient housing. By preparing now and fully understanding these changes, you can ensure that your projects not only comply with new regulations but also contribute to a greener future. Let’s embrace these changes together and continue to innovate in our designs and construction practices.
Schedule a meeting with us to discuss how we can help you navigate these updates and ensure your projects remain ahead of the curve!
