HUD Extends Compliance Date for Energy Efficiency Standards
will be making their decisions on how to deal with utilities prior to the adoption of the new language.
AG GUIDANCE
Because of the delay in a legislative solution to the apportioned utility issue, the Association has also asked the Colorado Attorney General’ s office to interpret the statute and issue its commitment regarding its enforcement of the HB 25- 1090 language. In response to the Association’ s request, the Office of the Attorney General issued the November 24, 2025 Memorandum( reprinted in its entirety on the next two pages). The Memorandum indicates that the provisions of HB 25-1090 will not be applied to leases entered into before January 1, 2026 and when the provisions are applied to new leases it will not pursue legal actions against landlords that allocate utility costs among tenants using a ratio utility billing system that:
1. The aggregate amounts billed to all tenants do not exceed the total amount charged by the utility provider for the specific property;
2. The landlord does not apply a markup, surcharge, administrative fee, or other amount in excess of the actual charges from the utility provider, except as otherwise permitted under § 38-12-801( 3)( a)( VI), C. R. S.;
3. Utility costs for common areas or shared facilities are excluded from any tenant allocation; and
4. The landlord clearly and conspicuously discloses the reasonable and objectively fair method of allocation in the rental agreement and any disclosures otherwise required by law.
www. aamdhq. org
APARTMENT ADVOCATE
NATIONAL APARTMENT ASSOCIATION
HUD Extends Compliance Date for Energy Efficiency Standards
The U. S. Department of Housing and Urban Development( HUD) has announced that the compliance date for its Energy Efficiency Standards for New Construction of HUD- and USDA-Financed Housing was extended from November 10, 2025 to May 28, 2026.
HUD’ s notice will require that new construction and rehabilitation assisted through certain HUD and USDA programs meet updated energy efficiency standards, specifically the International 2021 Energy Conservation Code( IECC) and the American Society of Heating, Refrigerating and Air-Conditioning Engineers( ASHRAE) 90.1-2019 standard.
This extension includes all Federal Housing Administration( FHA)-insured multifamily properties, however it does not amend the compliance date for the HOME Investment Partnerships Program( HOME) and the Housing Trust Fund( HTF) Program, which has already passed. The additional delay for covered programs will provide time for the agency to fully consider the public comments received in response to the July 7, 2025, Notice for Comment.
The original notice pointed out that, as of December 2023, only five states have adopted the 2021 IECC or equivalent codes and ten states and the District of Columbia have adopted the ASHRAE 90.1-2019 standards. This means that HUD- and USDA-assisted projects will be required to meet far stricter standards than the large majority of states, potentially creating additional compliance burdens and disincentivizing the utilization of these important financing tools.
The National Apartment Association( NAA) applauds HUD for reevaluating whether these standards should be imposed in light of the President’ s housing and re-regulation priorities. NAA urged the Trump Administration that these requirements are subject to ongoing litigation and the Administration should decline to defend the Final Determination and continue to delay implementation pending the outcome of litigation. recognizing the valuable perspectives and concerns presented by industry experts.
NAA urges its members to work with local counsel to understand how this announcement could impact internal business practices. NAA continues our federal advocacy with Congress and the Administration to promote responsible and sustainable housing policy solutions. To learn more, contact publicpolicy @ naahq. org.
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