ARTICLE
4 August 2025

Court Pauses New Energy Efficient Building Codes Amid Legal Challenge

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Hilger Hammond

Contributor

Hilger Hammond was founded in 2008 in Grand Rapids, Michigan, by Steve Hilger and Ben Hammond to do what we love most—protecting clients’ interests and making it easier for them to conduct business with success.

Over the years, the firm has grown by attracting top talent with deep experience in complex commercial litigation, construction, real estate, and business law. We are a highly-specialized team that delivers more value for every dollar clients invest in our legal services.

On July 7, Judge James Robert Redford issued an Order staying implementation of the Residential Building Code and Michigan Uniform Energy Code updates.
United States Real Estate and Construction

On July 7, Judge James Robert Redford issued an Order staying implementation of the Residential Building Code and Michigan Uniform Energy Code updates. The Home Builders Association of Michigan (HBAM) and Michigan Manufactured Housing Association filed lawsuits in the Michigan Court of Claims (a division of the Court of Appeals that handles certain claims against the State) in June against the Michigan Department of Licensing and Regulatory Affairs (LARA) seeking immediate injunctive relief from implementation and enforcement of the new codes. LARA will also remove links to access the 2021 Residential Code Book from its website.

In May, updates to the Residential Building Code and to the Michigan Uniform Energy Code were filed with the Michigan Secretary of State, set to take effect on August 29, 2025. These proposed updates implement the 2021 edition of the International Residential Code (IRC) and the 2021 edition of the International Energy Conservation Code (IECC), which aim to increase energy efficiency in homes.

The complaints allege that the construction code changes fail to comply with the "cost-effective" analysis of construction code under Michigan law that requires the cost of improvements to be recovered over a 7-year period. The complaints also allege that the changes, as proposed, failed
to satisfy the Administrative Procedures Act (MCL 24.201 et seq.).

The codes have faced heavy criticism from builders who are projecting a $16,000 increase in the cost to build a typical 2,000 square foot home, potentially pricing more Michiganders out of home ownership.

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In February 2025, HBAM announced that preliminary results from the U.S. Census Bureau showed that single family home construction in our state shrunk by nearly 8% in 2023 compared to 2022. HBAM cautioned that proposed changes to building codes could further lower home production by raising building costs. The proposed changes require R-60 insulation in ceilings, sprinkler systems in all homes, and other costly measures.

What's Next?

Michigan will adopt new codes, but there will be uncertainty until the conclusion of this lawsuit.

The International Code Council (ICC) consults a wide range of experts to draft model codes, which are widely adopted across the nation and overseas. While Michigan is seeking to implement the 2021 editions of the IRC and IECC, the ICC has since published more up-to-date and efficient 2024 editions for the IRC and IECC. The 2024 IECC is projected to result in an energy cost savings of 6.6% compared to the 2021 IECC while offering more flexibility for builders through a wider range of compliance options, minimizing build cost increases for new homes.

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