Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, the affordability crisis has spread to nearly every facet of American lives. Utility bills are skyrocketing across the country.…
Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, the affordability crisis has spread to nearly every facet of American lives. Utility bills are skyrocketing across the country. Trump's disastrous tariffs are being passed on to the American consumer. Grocery prices are up, making it hard for families to put food on the table, and Republicans delivered their latest blow
with failing to extend the Affordable Care Act enhanced premium tax credits which will result in soaring healthcare premiums for more than 20 million Americans. In many cases, Americans are seeing monthly premiums either two, three, or four times higher than they were last year for their healthcare insurance.
To make matters worse, we are in the midst of a housing crisis that is crushing American families' dreams. We are witnessing historically high home prices, coupled with a devastating shortage of housing. The cost of buying a home feels out of reach for too many, while rent is simultaneously ballooning at an unsustainable rate. Manufactured homes, however, are an important component of our affordable housing stock.
We should all be concerned about the cost of buying a new home, but this bill does not solve this crisis. In fact, it only makes housing affordability worse.
First, it revokes the Department of Energy's May 2022 energy conservation standard for manufactured housing, robbing residents of $5 billion in savings. Manufactured homes are often far less efficient than other homes, costing owners about 70 percent more per square foot in utility bills. Many low-income residents have reported foregoing basic necessities like food or medicine in order to keep their lights on.
To suggest that the Department of Energy standards for manufactured homes negatively impact affordability is entirely false. As I stressed, it is entirely false. When talking about affordability, it is imperative that we also consider the cost of actually living in these homes, and energy use is a big part of that. This is even more important at a time when electricity costs are up 13 percent nationwide.
If my Republican colleagues really want to get at the root cause of the current housing affordability crisis, they should look at Trump's disastrous tariffs on essential building materials and appliances, not energy efficiency standards that actually lower monthly energy bills.
Now, this bill also strips the Department of Energy of its congressionally-directed authority to set efficiency standards for manufactured homes and sends the responsibility to the Department of Housing and Urban Development, or HUD, an agency with a history of failing to protect manufactured housing residents from high energy costs.
Prior to the passage of a bipartisan bill called the Energy Independence and Security Act in 2007 when George Bush was President, he signed that into law, and HUD was then responsible for setting energy efficiency standards for manufactured homes. However, the agency, HUD, failed to act, leaving residents without an updated energy code since 1994. It is no wonder that 44 percent of manufactured housing residents face a high energy burden.
Now, the Department of Energy in May 2022 set a standard that was long overdue that said that manufactured housing residents had gone without a modern standard for nearly 30 years before the Department of Energy issued a final rule, and they did so. As a result, the standard that exists now, which this bill would repeal, essentially saves about $475 a year in savings on utility bills; but this bill repeals those savings. It repeals the DOE standards, and that is what is unacceptable about this bill. We should be fighting to raise the standard of living of manufactured housing residents, not lowering it with higher costs.
That is why I strongly oppose the bill. The affordability crisis is quite literally hitting home for millions of Americans, and H.R. 5184 would only saddle residents with even higher utility bills at a time when they can least afford it.
Mr. Speaker, I urge my colleagues to vote ``no'' on the bill, and I reserve the balance of my time.
Mr. Speaker, I yield such time as she may consume to the gentlewoman from Florida (Ms. Castor), who is the ranking member of the Subcommittee on Energy.
Mr. Speaker, I yield 2 minutes to the gentlewoman from Oregon (Ms. Bonamici).
Mr. Speaker, I yield an additional 1 minute to the gentlewoman from Oregon.
Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, while I appreciate that my colleague from Massachusetts offered an amendment to improve the bill during the subcommittee markup, unfortunately, his amendment fell short of addressing the fatal flaws in this underlying bill.
The amendment allows the Department of Energy to make efficiency recommendations to the Department of Housing and Urban Development on energy conservation standards. While this change is better than completely writing the Department of Energy out of the process like the original bill did, the fact of the matter is that this bill still nullifies the Department of Energy's manufactured housing rule standard for energy efficiency and, therefore, jeopardizes billions in savings for American families.
Additionally, the bill, as amended, does not specify what HUD should do with the recommendations from the Department of Energy. Even if the Department of Energy submitted recommendations, HUD is likely to ignore them. Let us not forget that when HUD had sole authority to issue energy codes for manufactured housing prior to 2007, the agency failed to act.
Again, it is important to ask: Why should we entrust HUD to act differently now?
This bill undermines the Department of Energy's authority to set efficiency standards and will rob much-needed and long-overdue savings from manufactured housing residents. I still strongly oppose the bill, as amended. Families who live in manufactured housing deserve to have efficient and safe homes. Let's fight to raise their standard of living, not lower it.
My colleague from Massachusetts mentioned support from the housing group. Mr. Speaker, I include in the Record a letter from five major organizations that deal with manufactured homes: Americans for Financial Reform, Grounded Solutions Network, National Association for State Community Service Programs, Next Step Network, and ROC USA.
Hon. John Thune,
Majority Leader, U.S. Senate,
Washington, DC.
Hon. Chuck Schumer,
Minority Leader, U.S. Senate,
Washington, DC.
Hon. Mike Johnson,
Speaker, House of Representatives,
Washington, DC.
Hon. Hakeem Jeffries,
Minority Leader, House of Representatives,
Washington, DC.
Dear Leader Thune, Leader Schumer, Speaker Johnson, and
Leader Jeffries: We write to you as representatives of
organizations that advocate for and support the production of
affordable homes for lower-income families, urging you to
oppose H.R. 5184, the Affordable HOMES Act. This bill would
result in high energy costs for families who live in new
manufactured homes, undermining their affordability at a time
when those families are having trouble paying their bills.
Manufactured homes have long been--and must remain--a key
source of housing for many limited-income residents. Yet some
of these homes are built with poor insulation, air sealing,
and windows, leaving residents with unaffordable monthly
energy bills. These costs are a burden for the residents, who
have a median household income of roughly $40,000.
The Department of Housing and Urban Development (HUD) last
updated energy requirements for manufactured homes more than
three decades ago in 1994. Unfortunately, those outdated
rules have allowed the continued construction--up to the
present day--of homes that are poorly insulated and sealed.
In response to HUD's inaction, Congress stepped up in 2007 by
directing the Department of Energy (DOE) to set energy
efficiency standards for the homes. Standards finalized by
DOE in 2022 would significantly improve affordability, with
energy bill savings that far exceed the modest added
construction costs.
While DOE and its national labs have much greater building
energy expertise, HUD already has an active compliance
program for its manufactured home standards, and cooperative
use of that infrastructure would improve compliance with the
DOE standards and ease the compliance burden for
manufacturers by creating one enforcement mechanism.
Unfortunately, the timely and effective implementation of the
cost-saving standards has faced opposition, including
litigation, from segments of the industry.
H.R. 5184 would revoke the 2022 DOE standards, and it would
go further, eliminating DOE's authority to set standards for
manufactured homes altogether. This would leave only HUD's
three-decade-old code in place, along with the unlikely
prospect that HUD and the Manufactured Housing Consensus
Committee would suddenly update energy efficiency standards
after decades of inaction. While many manufactured homes
already are built well above the DOE standard, many others
are still built to the baseline HUD Code level.
Congress can and must take steps to improve housing
affordability, including expanding production of homes in
which families can afford their energy bills and be safe and
comfortable during extreme weather. H.R. 5184 would have the
opposite effect, locking in the unaffordable and harmful
status quo for too many families who live in manufactured
homes.
For these reasons, we urge you to vote against H.R. 5184.
Sincerely,
Americans for Financial Reform.
Grounded Solutions
Network.
National Association for State Community Services Programs.
Next Step Network.
I don't want to read the whole thing, but this was addressed to the House bipartisan leadership.
It says: ``We write to you as representatives of organizations that advocate for and support the production of affordable homes for lower income families, urging you to oppose H.R. 5184, the Affordable HOMES Act. This bill would result in high energy costs for families who live in new manufactured homes, undermining their affordability at a time when those families are having trouble paying their bills.''
I won't get into the rest of it, but I just wanted to point out that many more organizations that deal with manufactured homes, than what was cited by my colleague from Massachusetts, oppose this bill.
Mr. Speaker, I reserve the balance of my time.
Mr. Speaker, may I inquire as to how much time remains on both sides?
Mr. Speaker, I continue to reserve the balance of my time.
Mr. Speaker, I yield myself such time as I may consume.
I listened to the gentleman from Colorado, but I just want to stress that this bill isn't about resolving conflicting standards or regulatory confusion on the part of the Federal Government.
This is about the fact that the Department of Housing and Urban Development failed to act for decades on energy efficiency, leaving a 1994 energy code untouched for over 30 years.
Now, when the Department of Energy is seeking to put in place a standard, well, what happens? First of all, when it was supposed to go into effect, President Trump this summer basically postponed it.
Now, they are trying to remove the standard entirely, but removing the Department of Energy's authority to set efficiency standards will only leave residents unprotected from high energy costs.
The Department of Energy is required by statute to consult with HUD in setting efficiency standards, and
DOE has worked extensively with HUD on this for years.
Technically, HUD can still update the energy code for manufactured homes, but they have been severely delinquent in doing so. Just as I mentioned, HUD has had over 30 years to set a stronger standard, and they just choose not to.
H.R. 5184 does not magically rewrite history. Giving HUD sole authority now does not take away the fact that the agency left manufactured housing residents with energy bills that are 70 percent more per square foot compared to site-built homes for decades.
DOE's energy sector experts are best positioned to set efficiency standards for manufactured homes, and it is the only agency that has successfully produced modernized standards. Those standards would save $475 a year on utility bills and have a real impact on Americans' wallets, safety, and security. Of course, though, President Trump doesn't want that, so he set aside the standard, and now they want to eliminate it completely. All that is going to do is raise utility bills tremendously for people who live in manufactured homes.
Mr. Speaker, I reserve the balance of my time.
Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I think we can all agree that we need to do a lot more to address housing affordability, but let me assure everyone that this bill is not the solution because it doesn't do anything to bring down costs. In fact, it only raises costs on hardworking American families, particularly hurting low-income, rural, and senior households.
I think there is a misunderstanding on the other side of the aisle about the Department of Energy's process in setting efficiency standards for manufactured homes, so let me just clear a few things up.
The Department of Energy would not issue an energy conservation standard if the benefits of the rule did not far outweigh the costs. DOE is required by statute to consult with the Department of Housing and Urban Development. It is also specifically required to ensure that the standards are cost effective based on the impact on the purchase price of the home as well as the total life cycle construction and operating costs.
Affordability is really at the core of the statute that directs the Department of Energy to set efficiency standards for manufactured homes, and as such, affordability is a guiding principle in the Department's May 2022 final rule that set the efficiency standards.
In fact, in order to accommodate price-sensitive, low-income purchasers, DOE adopted a tiered approach in the
final rule based on the size of the manufactured home. This standard is projected, as I have said, to save manufactured housing residents $5 billion, even when you include the upfront costs.
In fact, in the first year of home ownership, energy savings greatly exceed the marginal increase that might come from the initial purchase. The bottom line is that the benefits in energy savings to the consumer immediately offset any increase in purchase price. I think it is important to reiterate that affordability is about more than just the purchase price.
A lower purchase price doesn't mean anything if you are spending 70 percent more per square foot on energy bills like manufactured housing residents currently are. Over 40 percent of manufactured housing residents face a high energy burden, meaning that more than 6 percent of their income is going toward energy costs.
Given the recent trends in energy costs, it is more important now than ever that we maintain the Department of Energy's standard to protect these residents from even higher energy bills.
I think if my Republican colleagues really wanted to address housing affordability, they would be speaking out against Trump's tariffs. These are tariffs that the President has put on essential building materials. That is the problem right now. Hopefully, today, the Supreme Court eliminates these tariffs, but right now the increased costs of manufactured housing is primarily based on the tariffs. That is what is driving up the costs.
Mr. Speaker, I reserve the balance of my time.
Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, my colleagues on the other side keep talking about efficiency standards driving up costs but, in fact, it is not the case. The costs that are driving up manufactured home prices is because of Trump's disastrous tariffs.
President Trump has issued tariffs on essential building materials on inputs, like lumber, gypsum, steel, and even appliances and cabinets. These tariffs are driving up the costs of new construction, renovations, and affordable housing development.
Tariffs are raising construction and renovation costs and disrupting supply chains, placing upward pressure on home prices. Trump's tariff policies are not only undercutting the supposed goal of reducing the cost of living for Americans but they are also exacerbating the housing crisis by slowing the production of housing and adding exorbitant costs to the process.
The ever-changing tariff landscape, because we don't even know what it is from one day to the next with him, is creating uncertainty for homebuilders and putting the dream of buying a new home out of touch for perspective home buyers. Even the National Association of Home Builders has criticized Trump's tariffs as harming housing affordability and driving up costs. American consumers are feeling the pinch and paying the price for Trump's tariffs.
Mr. Speaker, I think it is time for my Republican colleagues to look in the mirror because what is really contributing to the housing crisis in a major way is Trump's tariffs, not energy conservation standards that save American consumers money. Stop demonizing efficiency standards, not only in this bill but on so many occasions, and start addressing the root of the problem.
Mr. Speaker, that is President's Trump's bad policies. I don't know if anything has come forward yet. Hopefully, today the Supreme Court is going to throw these tariffs out, and maybe we will have some relief. That is the problem here.
Mr. Speaker, I reserve the balance of my time.
Mr. Speaker, I yield 2 minutes to the gentlewoman from New Mexico (Ms. Stansbury).
Mr. Speaker, I yield myself the balance of my time.
Mr. Speaker, I want to stress again the nature of this bill is totally the opposite of what the Republicans say. It should be titled the unaffordable homes act because electricity prices are rising across the country. Americans are going into debt to heat their homes this winter.
President Trump has failed on his day one promise to bring down prices for American families. Instead, his big, ugly bill is projected to increase electricity prices by an additional 61 percent.
How are American families supposed to shoulder the financial burden as they struggle to afford the cost of their daily necessities that have been inflated by his senseless tariff policies?
I hear from my constituents every day that affordability is their top concern, and we should be focused on advancing bipartisan legislation to end this affordability crisis. Instead, my Republican colleagues are trying to repeal the Department of Energy's energy efficiency standards for manufactured housing through this bill.
Mr. Speaker, these standards were thoughtfully developed in consultation with HUD to balance upfront costs and long-term affordability. These standards are sorely needed as energy efficiency standards for manufactured housing haven't been updated for over 30 years.
As a result, electricity bills for manufactured homes are 70 percent higher than site-built homes. It is cruel and senseless to try to overturn energy efficiency standards for manufactured housing as families are facing unprecedented increases in their electricity bills.
The Department of Energy's manufactured home efficiency standards are estimated to save homeowners $475 per year on their utility bills. Collectively, these standards would save 17 million Americans $10 billion over 30 years.
These efficiency standards are good for our wallets, and they are good for the economy. It is really unconscionable for Congress to consider overturning these standards amid this affordability crisis.
Mr. Speaker, I ask my colleagues to oppose this legislation, and I yield back the balance of my time.
Mr. Speaker, on that I demand the yeas and nays.