On October 7, the U.S. Department of Housing and Urban Development (HUD) released the Next Generation Manufactured Housing Action Plan, a framework that modernizes the 50-year-old HUD Code to implement the bipartisan 21st Century ROAD to Housing Act, which was signed into law in July. Georgia cities should take note of the changes to ensure their communities are prepared to support the housing needs of the future.
The ROAD to Housing Act made a number of changes to increase housing supply and affordability, including removing the permanent chassis requirement to allow more innovation in manufactured housing. The plan outlines how HUD will update the Manufactured Housing Construction and Safety Standards, commonly known as the HUD Code.
From HUD: “The changes undertaken in accordance with this plan will involve the consideration of the Manufactured Housing Consensus Committee (MHCC) in its role of advising HUD on program changes. The intent is not to predetermine individual regulatory outcomes. Rather, the plan identifies areas where standards, research, demonstrations, technical analysis, and stakeholder input are likely to be needed.”
The Next Generation Manufactured Housing Action Plan outlines how HUD will:
- Update energy efficiency standards for manufactured homes.
- Remove barriers to build by addressing the design and construction of manufactured homes built without a permanent chassis.
- Maintain safety by addressing foundation, anchoring, and installation requirements for chassis-free homes.
- Create construction pathways to explore innovative housing types that work within the federal manufactured housing regulatory framework and that factories can realistically complete.
- Develop a performance-based code for larger-scale buildings to examine a federal construction and safety framework for larger factory-built residential structures.
- Develop resources for chassis-free construction to provide stakeholders with information on early projects, including design, transportation, foundations, installation, zoning, appraisal, lending, insurance, and market acceptance.
- Allow more manufacturers on board to increase housing supply by providing resources for existing modular and other off-site construction manufacturers who comply with the federal system.
Learn more about the specific changes.
HUD Extends FHA Multifamily Insurance to Build-to-Rent Housing
In line with the housing law’s implementation, HUD has expanded access to Federal Housing Administration (FHA)-insured financing to Build-to-Rent communities under two of its multifamily mortgage insurance programs. Multifamily rental properties, both site-built and manufactured, will now be treated under the same terms and conditions as traditional multifamily developments.
GMA will continue tracking the regulatory guidance from HUD and other federal agencies throughout the implementation of the new housing law. We expect more regulatory guidance to modernize local permitting and streamline administrative processes in the coming months.
Please reach out to Federal Relations Manager Molly McLoughlin for any questions.