HUD would review financing barriers for modular home builders

The Department of Housing and Urban Development would review barriers to modular construction in Federal Housing Administration construction financing programs. Modular homes are built in factory sections, meet state and local building codes, and are installed on foundations. The review would examine program restrictions and administrative steps the department already has authority to take. The department would publish its findings and recommendations within one year after enactment.

Federal housing officials would start a rulemaking to consider a different construction loan payment schedule. The process would cover construction financing loans for modular and manufactured home builders. Interested people and organizations would have an opportunity to comment. After public comment, officials would issue a final rule or explain why they would not finalize it. Officials would start the process within 120 days after publishing the financing review.

The housing department could award a grant to study a standard code for modular homes. The study would examine identifying and securing factory-built home sections, simplifying design and construction, and linking a standard code to financing incentives. The grant would be optional. Congress would still need to provide funding; the bill authorizes funding without setting aside money.