HUD would review financing barriers for factory-built modular homes

The Department of Housing and Urban Development (HUD) would review federal construction financing and publish its findings and recommendations. The review would cover Federal Housing Administration programs and modular homes built in factories, completed on foundations, and meeting applicable state and local building codes. HUD would examine rules and program features that limit developers' participation, including when loan money is released during construction. HUD would identify steps it already has authority to take. The report would be due no later than one year after enactment.

HUD would start a public rulemaking process to consider an alternative schedule for releasing construction loan money. The process would cover construction financing loans for modular and manufactured home developers. Interested people and organizations would have an opportunity to comment. After public comments, HUD would either issue a final rule or explain why it would not finalize the rule. HUD would have to begin the process within 120 days after publishing its financing review report.

HUD could award a grant to study common commercial rules for modular homes. The study would examine standard ways to identify and secure modules, improve design and construction, and connect common rules with financing incentives. The grant would be optional. The bill would authorize Congress to provide money but would not itself set aside funds.