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The U.S. Department of Housing and Urban Development (HUD) on Wednesday announced updates to its manufactured housing construction and safety standards, a move it called the most extensive such updates in three decades as the department seeks to modernize the features of these homes to drive demand.
The new standards, scheduled to be published via a final rule in the Federal Register on Sept. 16, were announced on Wednesday by Federal Housing Administration (FHA) Commissioner Julia Gordon in Elkhart, Indiana, which is home to the RV and Manufactured Housing Hall of Fame.
The revisions include “90 new or updated standards to increase innovation and production of homes with features that are sought-after by consumers,” such as open floor plans, accessibility enhancements and specifications for attics, HUD said.
The final rule seeks to establish seven core overarching provisions. These include changes to regulatory language which will allow single-family manufactured homes to have up to four dwelling units, and changes to allow for open floor plans, truss designs and specifications for attics.
The new standards also contain additions to allow for ridge roof designs; updated materials reference standards to allow for more modern home designs; accessibility improvements to align with national disability safety standards; new standards for more modern, energy-efficient in-home appliances; and improved language to broaden flexibility in obtaining installation licenses and pipe testing.
Additionally, the revisions seek to expedite the manufactured home construction process by streamlining certain requirements and removing a need for manufacturers to obtain “alternative construction approvals for materials that already meet or exceed HUD standards.” This is being done to lower costs for families who may be seeking out a manufactured home in a competitive and limited housing inventory environment.
“Updating the Manufactured Home Construction and Safety Standards, commonly referred to as the ‘HUD Code,’ supports the Biden-Harris Administration’s goals to expand the domestic supply of safe, affordable and energy efficient manufactured homes,” HUD explained. “For example, the final rule enables multi-unit single family manufactured homes to be built under the HUD Code for the first time, extending the cost-saving benefits of manufactured housing to denser urban and suburban infill contexts.”
HUD acting secretary Adrianne Todman said that manufactured housing can be a key tool for the Biden administration and HUD to address housing issues across the country, particularly as it relates to affordability and inventory shortages.
“Manufactured homes are an affordable housing option for Americans across the country,” Todman said. “This update of the HUD Code is long overdue and will help increase production while also ensuring modern designs to suit the needs of families.”
Gordon added that manufactured housing represents a novel solution for the supply and affordability issues playing out across the country.
“The changes to the HUD Code we’ve finalized today will expand the choices among manufactured homes available for the nation’s homebuyers, while increasing the production and availability of innovative manufactured home designs that are safer, modern, and comparable to site-built homes,” Gordon said. “These updates will bring the HUD Code in alignment with today’s construction standards and reduce operational complexity for manufacturers.”
Industry response
When reached by HousingWire, the Manufactured Housing Institute (MHI) lauded the development, particularly as the nation continues to navigate challenging housing issues that have seen elevated prices and limited inventory.
“Manufactured housing offers quality and affordability to Americans who need and deserve both,” the organization said.
MHI CEO Lesli Gooch agreed with contentions made by HUD regarding the need for modernization and easier access to manufactured housing.
“Today’s updates to the construction code for manufactured housing will support the industry in delivering homes with innovative designs and modern features, bringing attainable home ownership to more people across the country,” Gooch said in a statement.
But the organization was not without certain concerns.
“MHI is concerned about the tight 180-day timeline to enact these substantial new changes, including 74 updates to reference standards, 16 new standards, and 3 regulatory text changes,” MHI said.
But the group added that the proposed revisions and updates laid out in the Federal Register entry will prove “critical” by clearing a backlog of items “previously approved by the Manufactured Housing Consensus Committee (MHCC), which have been pending HUD approval and implementation for years,” MHI said.
“To avoid future backlogs, MHI urges HUD to provide more regular updates to the HUD Code to alleviate construction challenges and streamline attainable home ownership nationwide.”
HUD has recently become more vocal about manufactured housing as a potential tool to address housing issues.
In June, the department announced the launch of a new program designed to allow for the purchase, refinance or renovation of manufactured housing communities under a loan program sponsored by FHA. The Manufactured Home Community loan product is designed to “help entities to preserve, stabilize, and revitalize these vital sources of affordable housing,” the department explained at the time.
The loan program was announced during a HUD housing showcase event on the National Mall in Washington, D.C., but Gooch later told HousingWire that she took issue with the way HUD framed the program and private investors in the manufactured housing space.
