HUD modernizes manufactured homes with major rule changes

It updates manufactured housing standards for first time in three decades

HUD modernizes manufactured homes with major rule changes

The Department of Housing and Urban Development (HUD) has announced the most extensive updates to its manufactured housing construction and safety standards in over 30 years.

The changes aim to modernize manufactured homes, making them a more attractive and affordable option for Americans seeking homeownership, while also addressing the nation’s ongoing housing crisis.

“Manufactured homes are an affordable housing option for Americans across the country,” said HUD acting secretary Adrianne Todman. “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.”

In a press release, the agency said it recognizes “the significant need to increase the supply of safe and quality affordable housing and is committed to fostering increased production and broader consumer acceptance of manufactured housing as a viable, affordable, and comparable alternative to a site-built home.”

HUD's new standards include a total of 90 updates or additions, covering everything from open floor plans and roof designs to modern appliances and energy-saving features. The revisions also include allowing for up to four-unit manufactured homes, expanding options for multi-family housing.

“The changes to the HUD Code we’ve finalized today will expand the choices among manufactured homes available for the nation’s homebuyers,” said Julia Gordon, HUD’s assistant secretary for housing. She added that the changes will help increase the availability of innovative manufactured home designs that are “safer, modern, and comparable to site-built homes.”

To accelerate the rollout of these new standards, HUD’s Office of Manufactured Housing Programs has issued an industry-wide "Alternative Construction Letter." This allows manufacturers to gain immediate approval to start building multi-unit manufactured homes, instead of waiting for the new standards to take full effect.

“These updates will bring the HUD Code in alignment with today’s construction standards and reduce operational complexity for manufacturers,” Gordon said.

Industry reacts

The Manufactured Housing Institute (MHI), a leading industry group, has welcomed HUD’s updates, calling them a long-overdue step toward modernizing manufactured homes and expanding affordable housing options.

"Today’s updates to the construction code for manufactured housing will support the industry in delivering homes with innovative designs and modern features," said MHI chief executive Lesli Gooch. "This brings attainable homeownership to more people across the country."

Gooch also commended HUD for eliminating the need for additional "Alternative Construction" processes, allowing manufacturers to immediately build one-to-four-unit manufactured homes to meet rising demand.

However, MHI said the timescale allocated for implementing the changes was narrow and urged HUD to provide more regular updates to the HUD Code in the future to avoid backlogs.

“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,” Gooch said.

“The proposed revisions and updates to the HUD Code are critical. They clear out the backlog of items previously approved by the Manufactured Housing Consensus Committee (MHCC), which have been pending HUD approval and implementation for years.”

MHI urged the agency to provide more regular updates to the HUD Code to avoid future delays and to streamline the process for delivering affordable homes.

Read more: Here's how HUD plans to ensure affordability is part of housing finance reform

This move follows HUD's recent efforts to promote manufactured housing as a solution to the affordable housing crisis. In June, the department launched a new loan program to support the purchase, refinance, or renovation of manufactured housing communities.

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