H.R. 6269: Modular Housing Production Act

This bill, titled the Modular Housing Production Act, aims to enhance the production of modular homes by addressing barriers in Federal Housing Administration (FHA) construction financing programs. Here’s a breakdown of what the bill would do:

Definitions

The bill defines several key terms:

• Manufactured home: A home built according to federal safety standards.
• Modular home: A home constructed in a factory in one or more sections, where each section meets local and state building codes. The sections are transported to the site and installed on a foundation.
• Secretary: Refers to the Secretary of Housing and Urban Development.

Review of FHA Construction Financing Programs

The Secretary of Housing and Urban Development is required to conduct a review of FHA construction financing programs, with the following objectives:

• Identify Barriers: The Secretary will identify regulatory and programmatic features that make it difficult for modular home developers to participate in FHA financing programs. This includes checking construction draw schedules that may hinder participation.
• Evaluate Administrative Measures: The Secretary will assess administrative options available under current laws that could help modular home developers utilize FHA programs more effectively.

Reporting Requirements

Within one year after the bill becomes law, the Secretary must publish a report outlining the findings from the review. This report will include:

• A description of barriers identified.
• Recommendations for program and policy changes aimed at reducing or eliminating those barriers.

Rulemaking Process

Following the publication of the report, the Secretary must initiate a rulemaking process within 120 days to explore an alternative draw schedule for construction financing loans specifically for modular and manufactured home developers. This process will include:

• Opportunities for public comment from interested stakeholders.
• Issuing a final rule or explaining why a final rule is not implemented after review of public feedback.

Standardized Commercial Code Study

The Secretary may also provide a grant to study the development of a standardized commercial code for modular homes. This study will assess:

• The benefits of having a standardized coding system for modular homes to facilitate design and construction.
• How such a code could be coordinated with financial incentives to promote modular home production.

Funding Provisions

The bill authorizes appropriations as necessary to fund the study of the standardized commercial code for modular homes.

Relevant Companies

• GRAPH: A company involved in modular building technologies that could benefit from eased regulations in FHA financing.
• BLDR: Builders FirstSource, a manufacturer and supplier of modular building components, may see a positive impact from increased financing opportunities for modular home projects.
• DHI: D.R. Horton, a major homebuilder that might increase its modular home offerings if financing becomes more accessible.