Bill Summary
The "Modular Housing Production Act" is a piece of legislation aimed at enhancing the use of modular home construction methods within Federal Housing Administration (FHA) financing programs. The Act mandates that the Secretary of Housing and Urban Development conduct a comprehensive review to identify existing barriers that hinder modular home developers from participating in FHA construction financing.
Key provisions of the Act include:
1. **Definition of Terms**: It clarifies what constitutes a "manufactured home" and a "modular home," ensuring that both terms adhere to established regulatory standards.
2. **Review Requirements**: The Secretary is tasked with evaluating regulatory and program features that limit modular home participation in construction financing, such as construction draw schedules. The review should also explore administrative measures that could facilitate greater involvement of modular developers.
3. **Reporting**: Within one year of the Act's enactment, the Secretary must publish a report outlining the findings of the review and recommend policy changes to eliminate identified barriers.
4. **Rulemaking Process**: Following the report, the Secretary is required to initiate a rulemaking process to consider alternative draw schedules for modular home financing, allowing for public input.
5. **Standardized Coding System**: The Act authorizes the Secretary to award grants to study the feasibility of a standardized commercial code for modular homes, with the aim of improving design, construction, and innovation while also aligning with financing incentives.
Overall, the Act seeks to improve access to FHA financing for modular homes, potentially increasing housing availability and affordability.
Possible Impacts
The "Modular Housing Production Act" has several potential impacts on individuals and communities. Here are three examples:
1. **Increased Access to Affordable Housing**: The Act aims to identify and eliminate barriers to using modular home methods in FHA construction financing programs. By facilitating the use of modular homes, which are often more affordable to produce and purchase than traditional homes, the legislation could lead to an increase in the availability of affordable housing options for low- and middle-income families. This could help address housing shortages in many areas, making homeownership more achievable for a broader segment of the population.
2. **Streamlined Construction Processes**: The requirement for the Secretary of Housing and Urban Development to review and potentially revise construction draw schedules and other financing processes may lead to a more efficient construction financing system for modular home developers. This could result in faster construction times and lower costs, which would benefit consumers by reducing the time they have to wait for new homes and potentially lowering overall housing costs. Developers might also find it easier to enter the market, fostering competition and innovation in housing solutions.
3. **Enhanced Standardization and Quality Assurance**: The provision for the Secretary to study the design and feasibility of a standardized uniform commercial code for modular homes could lead to improved quality and safety standards in the modular housing industry. Homebuyers could benefit from greater assurance that modular homes meet specific building codes and quality standards, enhancing consumer confidence in purchasing these types of homes. Additionally, such standardization may encourage more manufacturers to enter the market, thus increasing the diversity of modular home designs and options available to consumers.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6269 Introduced in House (IH)]
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119th CONGRESS
1st Session
H. R. 6269
To require the Secretary of Housing and Urban Development to conduct a
review of Federal Housing Administration construction financing
programs to identify barriers to the use of modular home methods, and
for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
November 21, 2025
Mr. Lynch (for himself and Mrs. McClain) introduced the following bill;
which was referred to the Committee on Financial Services
_______________________________________________________________________
A BILL
To require the Secretary of Housing and Urban Development to conduct a
review of Federal Housing Administration construction financing
programs to identify barriers to the use of modular home methods, and
for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Modular Housing Production Act''.
SEC. 2. MODULAR HOUSING PRODUCTION ACT.
(a) Definitions.--In this Act:
(1) Manufactured home.--The term ``manufactured home'' has
the meaning given the term in section 603 of the National
Manufactured Housing Construction and Safety Standards Act of
1974 (42 U.S.C. 5402).
(2) Modular home.--The term ``modular home'' means a home
that is constructed in a factory in 1 or more modules, each of
which meet applicable State and local building codes of the
area in which the home will be located, and that are
transported to the home building site, installed on
foundations, and completed.
(3) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.
(b) FHA Construction Financing Programs.--
(1) In general.--The Secretary shall conduct a review of
Federal Housing Administration construction financing programs
to identify barriers to the use of modular home methods.
(2) Requirements.--In conducting the review under paragraph
(1), the Secretary shall--
(A) identify and evaluate regulatory and
programmatic features that restrict participation in
construction financing programs by modular home
developers, including construction draw schedules; and
(B) identify administrative measures authorized
under section 525 of the National Housing Act (12
U.S.C. 1735f-3) to facilitate program utilization by
modular home developers.
(3) Report.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall publish a report
that describes the results of the review conducted under
paragraph (1), which shall include a description of
programmatic and policy changes that the Secretary recommends
to reduce or eliminate identified barriers to the use of
modular home methods in Federal Housing Administration
construction financing programs.
(4) Rulemaking.--
(A) In general.--Not later than 120 days after the
date on which the Secretary publishes the report under
paragraph (3), the Secretary shall initiate a
rulemaking to examine an alternative draw schedule for
construction financing loans provided to modular and
manufactured home developers, which shall include the
ability for interested stakeholders to provide robust
public comment.
(B) Determination.--Following the period for public
comment under subparagraph (A), the Secretary shall--
(i) issue a final rule regarding an
alternative draw schedule described in
subparagraph (A); or
(ii) provide an explanation as to why the
rule shall not become final.
(c) Standardized Uniform Commercial Code for Modular Homes.--
(1) Award.--The Secretary may award a grant to study the
design and feasibility of a standardized uniform commercial
code for modular homes, which shall evaluate--
(A) the utility of a standardized coding system for
serializing and securing modules, streamlining design
and construction, and improving modular home
innovation; and
(B) a means to coordinate a standardized code with
financing incentives.
(2) Authorization of appropriations.--There is authorized
to be appropriated such funds as may be necessary to carry out
paragraph (1).
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