ShareE&E News by POLITICO
The Biden administration is imposing sweeping new flood-protection requirements on homes that are built or repaired with federal housing aid, despite industry warnings the policy would increase construction costs.
The Department of Housing and Urban Development published a rule Tuesday morning to protect new and rebuilt homes funded by HUD from flood damage by requiring them to be elevated 2 feet above the local flood level. The final rule also enlarges the flood zones where the elevation requirement applies.
HUD acknowledges the elevation policy will increase building costs — by up to $7,800 for a single-family home. But officials say it would save homeowners money in the long term by preventing flood damage and reducing their flood insurance costs.
Industry groups including the National Association of Home Builders, the National Association of Realtors® and the Mortgage Bankers Association raised concerns about the new elevation standard when HUD proposed it in 2023.