MBI Statement on the ROAD To Housing Act

While the country faces a dire housing shortage and we are encouraged to see strong bipartisan momentum on this issue, there are both promising and concerning provisions of the ROAD To Housing Act. The Act was recently passed unanimously out of the Senate Banking Committee.  

We are excited by the inclusion of Sec. 302 – Modular Housing Production Act, which calls for the Secretary of Housing and Urban Development (HUD) to review the Federal Housing Authority’s “construction financing programs to identify barriers to the use of modular home methods.” We are especially pleased to see that this section lays out a distinct definition of a “modular home” that rests on modules meeting “applicable State and local building codes”, clearly separating this building technique from manufactured home products. This section specifically identifies “construction draw schedules” as a barrier to wider modular adoption. We believe this provision acknowledges the unique nature of modular construction and the need for capital at different phases of a project, as compared with traditional on-site construction. Sec. 302 also allows the HUD secretary to award a grant to study the feasibility of a “uniform commercial code for modular homes.” We are eager to learn more about the intent and utility of a UCC for the modular industry, and request that MBI and its members be included in the study and the actual development of any future UCC.  

Sec. 303 expands FHA financing limits for repairs, improvements, and purchase of manufactured housing. It also mandates the Secretary of Housing and Urban Development “conduct a study…on the cost effectiveness of off-site construction housing.”  We are, again, pleased to see this section draw a definitive distinction between modular and manufactured housing with separate definitions. However, it is important to note that the study must include an analysis of “the extent to which offsite construction housing meets housing quality standards under the National Standards for the Physical Inspection of Real Estate [NSPIRE], or other standards as the Secretary may prescribe, compared to” those for site-built homes.  We must reiterate that modular homes are already built to rigorous state and local building codes, and as such, request that our industry not be subject to the federal NSPIRE standards.  

MBI will monitor legislative developments as the bill moves forward in the Senate. We will also continue to engage with the relevant committees in both the Senate and the House as companion legislation in the lower chamber develops, ensuring the modular industry’s voice is clearly heard.