HUD Proposals to Remove Chassis Requirement Could Transform Manufactured Housing Sector — Mobility and smart cities

New federal regulations driven by the 21st Century ROAD to Housing Act aim to eliminate the permanent chassis requirement for manufactured homes, potentially lowering costs and increasing housing diversity. While experts hail the move as a positive step toward affordability, they warn that cities must adapt their infrastructure and building codes to manage the rapid deployment of these units.

As local governments continue to grapple with the ongoing housing affordability crisis, recent updates to federal manufactured housing regulations are expected to make lower-cost housing options more attainable. The U.S. Department of Housing and Urban Development (HUD) initiated a process earlier this month to update regulatory and efficiency standards, a move driven by the 21st Century ROAD to Housing Act. This legislation removes a longstanding requirement that manufactured homes must include a permanent chassis.

John Lindley, president and CEO of the Michigan Manufactured Housing Association, described the recent HUD proposals as an unquestionably positive development in an interview with Smart Cities Dive. However, he noted that significant work remains regarding rule-making and engineering to fully implement the plan. Lindley emphasized that the innovation enabled by chassis-free construction is likely to substantially transform the industry, bringing more accessible housing options nationwide.

Arica Young, director of housing access and affordability at the Lincoln Institute of Land Policy, argued that requiring a chassis no longer makes sense given that less than 10% of manufactured homes are ever moved. She highlighted that removing this requirement necessitates changes to the actual building code for manufactured housing. Advocates suggest this shift could lead to major cost savings, though Young noted the exact extent remains unclear, with estimates ranging from $500 to $5,000 per unit. Furthermore, it is uncertain whether these savings will be passed directly to homeowners or retained by manufacturers.

One of the most impactful aspects of HUD's plan is the creation of a performance-based building code for multiunit manufactured housing, which Young called a game-changer for diversifying housing topologies. Despite the potential benefits, questions regarding implementation, construction, and design persist. Young pointed out that confusion remains regarding the most appropriate foundations for these structures, calling for more clarity on performance-based foundation standards.

Both Lindley and Young agreed that the regulatory updates do not raise safety issues. Lindley stated that HUD and the Manufactured Housing Consensus Committee work closely with the industry to ensure safe, quality construction in compliance with rigorous codes. However, cities and states face significant challenges in preparing infrastructure, including addressing water utility access and electrical grid issues. Young warned that once these homes are placed, deployment happens quickly, requiring municipalities to be nimble and understand the unique processes of factory-built housing compared to site-built construction.

Additionally, states must address financing mechanisms to ensure accessibility for individuals and resolve questions surrounding titling, specifically distinguishing between personal property and real property. Ultimately, both experts view these changes as a critical opportunity to increase housing supply. Lindley concluded that housing affordability is largely a supply-side problem and that this reform removes barriers to the use of quality, lower-cost, and energy-efficient manufactured homes.

Sources: Smart Cities Dive.