Bill Summary
The "Modular Housing Production Act" is a proposed legislation aimed at reviewing and improving Federal Housing Administration (FHA) construction financing programs to better accommodate modular homes. Modular homes are factory-built structures that comply with local building codes and are assembled on-site.
Key provisions of the Act include:
1. **Review of FHA Programs**: The Secretary of Housing and Urban Development is tasked with identifying barriers that modular home developers face in accessing FHA financing. This includes evaluating regulatory and administrative features that may restrict participation.
2. **Reporting Requirements**: Within one year of enactment, the Secretary must publish a report detailing the findings of the review, along with recommendations for policy changes to facilitate modular home financing.
3. **Rulemaking Process**: The Act mandates that within 120 days of the report's publication, the Secretary initiate a rulemaking process to consider alternative draw schedules for construction loans that would benefit modular and manufactured home developers.
4. **Standardized Code Study**: The Secretary is authorized to grant funds for studying the feasibility of a standardized uniform commercial code for modular homes, aimed at improving the efficiency of design, construction, and financing.
Overall, the Act seeks to enhance the accessibility and viability of modular housing through better financing options and standardized regulations.
Possible Impacts
The "Modular Housing Production Act" could affect people in several ways:
1. **Increased Access to Affordable Housing**: By identifying and removing barriers in Federal Housing Administration construction financing programs for modular homes, the legislation could facilitate the development of more affordable housing options. This may help low- to moderate-income families find housing that meets their budget, contributing to a reduction in homelessness and housing instability.
2. **Streamlining Construction Processes**: The Act's requirement for the Secretary to evaluate and potentially revise construction draw schedules could make it easier for modular home developers to access financing. This could lead to faster construction times and lower costs, ultimately benefiting homebuyers through reduced prices and quicker availability of homes.
3. **Innovation in Home Design**: With a potential grant for studying a standardized uniform commercial code for modular homes, the legislation may encourage innovation in modular home design and construction. This could lead to the development of more efficient, sustainable, and customizable housing options, providing consumers with a wider range of choices that better meet their needs and preferences.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6270 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 6270
To conduct a review of Federal Housing Administration construction
financing programs, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
November 21, 2025
Mrs. McClain (for herself and Mr. Lynch) introduced the following bill;
which was referred to the Committee on Financial Services
_______________________________________________________________________
A BILL
To conduct a review of Federal Housing Administration construction
financing programs, 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. 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.
SEC. 3. FHA CONSTRUCTION FINANCING PROGRAMS.
(a) 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.
(b) Requirements.--In conducting the review under subsection (a),
the Secretary shall--
(1) identify and evaluate regulatory and programmatic
features that restrict participation in construction financing
programs by modular home developers, including construction
draw schedules; and
(2) 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.
(c) 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 subsection (a), 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.
(d) Rulemaking.--
(1) In general.--Not later than 120 days after the date on
which the Secretary publishes the report under subsection (c),
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.
(2) Determination.--Following the period for public comment
under paragraph (1), the Secretary shall--
(A) issue a final rule regarding an alternative
draw schedule described in paragraph (1); or
(B) provide an explanation as to why the rule shall
not become final.
SEC. 4. STANDARDIZED UNIFORM COMMERCIAL CODE FOR MODULAR HOMES.
(a) 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--
(1) the utility of a standardized coding system for
serializing and securing modules, streamlining design and
construction, and improving modular home innovation; and
(2) a means to coordinate a standardized code with
financing incentives.
(b) Authorization of Appropriations.--There is authorized to be
appropriated such funds as may be necessary to carry out subsection
(a).
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