S. 2489: Modular Housing Production Act

This bill, known as the Modular Housing Production Act, aims to improve Federal Housing Administration (FHA) construction financing programs specifically for modular homes. Here's a breakdown of what the bill proposes:

1. Definition of Modular Homes

The bill defines:

• Manufactured home: A home defined under existing laws concerning manufactured housing.
• Modular home: A home built in a factory and transported to the site, meeting local building codes.

2. Review of FHA Programs

The Secretary of Housing and Urban Development (HUD) is required to conduct a review of FHA construction financing programs to:

• Identify barriers that restrict modular home developers' participation in these financing programs.
• Evaluate regulatory and program features that may be limiting.
• Identify administrative measures to ease participation for modular developers.

3. Reporting and Recommendations

Within one year of the bill's enactment, the Secretary must publish a report detailing the review's findings, including:

• A description of barriers facing modular home methods.
• Recommended programmatic and policy changes to improve access to FHA financing for modular homes.

4. Rulemaking Process

Following the report's publication, within 120 days, the Secretary must start a rulemaking process focused on alternative financing schedules for modular and manufactured home developers. This will allow for:

• Public commentary from stakeholders.
• A determination by the Secretary to either issue a final rule or provide an explanation for not doing so.

5. Standardized Code for Modular Homes

The bill also allows the Secretary to award grants to study the design of a standardized uniform commercial code for modular homes. This study would explore:

• The usefulness of a standardized coding system for modular homes, potentially enhancing innovation and streamlining construction.
• Ways to link this standardized code with financing incentives.

Additionally, it authorizes necessary appropriations to support the grant program for this study.

Relevant Companies

None found