The 2021 International Energy Conservation Code (IECC) establishes minimum efficiency standards for buildings to promote energy use reduction and lower emissions throughout their lifespan. The updated code aims for a 9.4% improvement in energy efficiency and an 8.7% decrease in greenhouse gases compared to the previous 2018 IECC. Effective January 1, 2024, all commercial and residential building projects applying for permits in Illinois must comply with these new standards.

Paths to Compliance

The 2021 IECC introduces additional performance-based alternatives, expanding upon the previous prescriptive and performance models. The prescriptive model outlines specific energy-efficient criteria for building products and systems, making compliance straightforward but potentially stifling design innovation and creativity.

Jim Caesar, Regional Vice President of The Opus Group, explains, “While the prescriptive approach makes compliance relatively easy, it can limit design creativity and innovation, leading to missed opportunities for energy and cost savings.”

Conversely, the performance model sets an overall energy usage target for the entire building, allowing for greater flexibility and creativity in the design process. This approach necessitates a collaborative design effort, incorporating input from multiple stakeholders to maximize efficiencies while controlling costs. However, the performance model also introduces complexities and uncertainties in the design phase.

With the 2021 code and new performance paths, the design process becomes more intricate, potentially increasing costs and timelines. However, these design investments can yield significant savings during construction when optimized solutions are implemented. A critical requirement is that buildings must meet their established performance targets to comply, meaning any real-world challenges could impact the planned energy efficiency.

Core Focus Areas

The 2021 IECC raises expectations for various elements of multifamily construction, focusing on energy efficiency, energy metering and monitoring, electric vehicle charging infrastructure, HVAC performance, air quality, and overall performance verification. These provisions fall into three main categories:

1. Building Envelope: New requirements for insulation, air leakage, and operable openings ensure better control of indoor climate and energy efficiency.
2. Mechanical Systems: Updates in HVAC fault detection, outdoor air energy recovery, and fan efficiency enhance indoor comfort and safety.
3. Electrical Systems: New mandates include energy consumption monitoring, automatic receptacle controls, EV infrastructure, improved lighting efficacy, and reduced lighting power.

Challenges for Multifamily Developments

While the push for sustainable building practices is vital, Illinois' adoption of the 2021 IECC presents challenges amid a national housing shortage. Freddie Mac estimates indicate a 3.8 million-unit deficit in housing. Multifamily housing, typically more efficient to develop than single-family homes, is an essential part of the solution. However, ongoing supply chain issues, labor shortages, inflation, and elevated interest rates complicate development efforts.

In Illinois, the costs associated with complying with the stricter 2021 IECC often prove challenging to pass on to potential tenants or buyers. The Midwest has seen a significant decline in multifamily permitting and starts, with a 16.3% drop in annual permitting and a 33.3% decrease in starts.

Moving Multifamily Housing Forward

Ultimately, progress must begin somewhere. As stakeholders navigate the uncertainties of the 2021 IECC’s implementation, it’s essential to recognize that the code’s updates could yield long-term financial benefits through reduced operating costs and improved living environments. Builders will adapt to efficiently meet the new requirements, and over time, the initial costs associated with these updates will balance out. As other industry challenges ease, multifamily housing development in Illinois has the potential to recover and thrive.