HR6270-119

What This Bill Does

The Modular Housing Production Act defines modular homes as factory-built modules meeting State and local building codes, transported to a site, installed on foundations, and completed there. HUD must review FHA construction financing programs to identify regulatory and programmatic barriers to modular methods, including construction draw schedules, and identify administrative measures under the National Housing Act that could improve modular developer participation. Within one year HUD must publish a report with recommended programmatic and policy changes. Within 120 days after that report, HUD must begin rulemaking on an alternative draw schedule for construction financing loans to modular and manufactured home developers, take public comment, and either finalize a rule or explain why it will not. HUD may also award a grant to study a standardized uniform commercial code for modular homes, including serializing and securing modules, streamlining design and construction, improving innovation, and coordinating the code with financing incentives.

Who Benefits and How

Modular home developers and manufactured home developers benefit from HUD review of FHA construction-financing barriers and potential alternative draw schedules that better match factory-built production. Homebuyers and communities facing housing shortages may benefit if modular production becomes easier to finance and scale. Researchers or standards organizations may receive grant support to study standardized modular-home coding.

Who Bears the Burden and How

HUD and FHA must conduct the financing review, publish a report, initiate rulemaking, handle public comments, decide whether to finalize an alternative draw schedule, and administer any study grant. FHA construction lenders may need to adapt underwriting and draw administration if HUD changes financing rules. Federal taxpayers bear any appropriated costs for the study grant.

Key Provisions

• Defines manufactured home, modular home, and Secretary for the Act.
• Requires HUD to review FHA construction financing programs for barriers to modular home methods.
• Requires a public report within one year recommending policy or program changes to reduce modular-financing barriers.
• Requires HUD to start rulemaking within 120 days on alternative draw schedules for modular and manufactured home construction loans.
• Authorizes a grant to study a standardized uniform commercial code for modular homes and coordination with financing incentives.