MBI Statement on Sen. Bill Hagerty’s Freedom To Build Act

The Modular Building Institute is proud to offer its strong support for Sen. Bill Hagerty’s (R-TN) Freedom to Build Act.

Introduced in March, the Freedom to Build Act addresses several of MBI’s longstanding policy goals by confronting two severe pain points in the modular development process: lack of interstate reciprocity and pre-construction delays.

Given that the entirety of the modular manufacturing process happens in a factory well beyond the traditional site-of-work, MBI members can, and indeed often do, ship modules for installation at building sites in other states.

This process can be arduous; in addition to the physical challenges of transporting volumetric modules by truck, the manufacturer’s facility must be certified to build for each state they wish to send modules. With 50 states, there are essentially 50 separate regulatory regimes manufacturers must navigate to obtain approval just to be allowed to build, let alone the complexity and delays that come with getting specific plans approved.

Beyond factory approval, plan and permit review and approval are the largest drivers of delays and increased costs. It is not uncommon for building plans and permits to take several months to be given final approval by local authorities.

The Freedom to Build Act aims to remedy these critical roadblocks by directing the Secretary of Housing and Urban Development to establish a “Freedom to Build” designation for localities that voluntarily adopt a pre-determined number of reforms aimed at increasing the supply of housing. Those localities that receive the “Freedom to Build” designation will be prioritized for competitive HUD grants.

To help ease the burdens on interstate modular placement, the Act, under “Unleashing Construction Innovation” reform category, lists as an option

[A]ligning local codes governing off-site construction with nationally recognized standards, including standards published by the International Code Council.

These standards would include the ICC/MBI 1200 Standards for Off-site Construction: Planning, Design, Fabrication and Assembly and the ICC/MBI 1205 Standard for Off-site Construction: Inspection and Regulatory Compliance. When states adopt these standards, manufacturers have a predictable regulatory environment, and state officials have confidence that out-of-state manufacturers are adhering to consensus-driven, uniform standards of operation.

Further, reforms under the “Fast-Tracking The Approval Process” including “binding maximum timelines for permit decisions and inspections” and stringent disclosure requirements will help keep projects moving forward in a safe, transparent manner.

MBI applauds Sen. Hagerty’s effort to reward states and localities for proactively adopting proven methods of increasing housing supply. We look forward to advocating this important legislation as it moves through the Senate all the way to the president’s desk.