The Michigan Court of Claims has issued a pause on implementing new energy efficiency requirements for new homes, after a challenge from two home builders associations arguing the new stipulations would increase construction costs and drive up costs for homebuyers.

In their complaint, the Home Builders Association of Michigan and the Michigan Manufactured Homes Association argued the Michigan Department of Licensing and Regulatory Affairs failed to meet cost-effectiveness requirements.

In order for construction codes to be considered cost effective, the costs of an improvement must be recovered by the benefits they would bring within seven years. The department must also ensure that qualified buyers are not priced out by the new standards and that the costs of principal, interest, taxes, insurance and utilities will not be greater than they were under the previous energy efficiency rules.

While the new rules, set to take effect on Aug. 29, would update Michigan’s residential construction code and its uniform energy code using the 2021 edition of the International Residential Code, in an order recently signed by Court of Claims Judge James Robert Redford, the department agreed with the builders associations to hold off on implementing the codes until this case has been resolved.

The department will also remove links to access the 2021 Michigan Residential Code Book – which includes the changes at question – from its website. Through the duration of the case, the 2015 version of the International Residential Code and the residential provisions of the 2015 International Energy Code, will continue to dictate energy efficiency requirements for Michigan builders.

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