Summary

Requires states to reimburse builders of qualifying housing in opportunity zones for the extra costs of meeting a state energy code that is more expensive than HUD’s Minimum Energy Standard. Payments must equal the HUD-determined incremental cost, be paid within 30 days after a unit is inspected and certified for occupancy, and the rule applies beginning 90 days after enactment and lasts seven years. Builders who receive or expect reimbursement must provide a HUD-prescribed disclosure to the first purchaser showing the cost difference and amounts received or expected; HUD determines cost differences and the Comptroller General must report annually to Congress on payments and measured cost differences by geography.

Key Points

• States must reimburse builders in opportunity zones for the incremental cost of complying with state energy housing codes above HUD’s Minimum Energy Standard.
• Payments equal the HUD-determined cost difference and must be paid within 30 days after a unit is inspected and certified for occupancy.
• Requirement starts 90 days after enactment and expires seven years after enactment.
• Builders who receive or expect reimbursement must give HUD-prescribed disclosures to the first purchaser showing cost differences and amounts received/expected.
• HUD determines the cost difference, including labor, supplies, wages, inspection, and other realized costs.
• Comptroller General must submit annual reports to Congress listing payments and measured cost differences by multiple geographic breakdowns.
• No reimbursement is required if the State energy code results in lower costs than HUD’s Minimum Energy Standard.
• The law creates a payable obligation for States but does not provide federal appropriations to fund those payments.

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