A Bold Move to Solve the Housing Crisis
For decades, manufactured housing has played an important role in America’s affordable housing landscape. But as HUD rolls out an ambitious overhaul of its manufactured housing program — promising lower costs, easier financing, and new design flexibility — those of us in the modular and site-built housing industries have reason to pause.
Yes, we all want more affordable homes. We need them urgently. But at what cost to quality, perception, and the hard-won reputation of modular construction?
The Chassis Question: A Dangerous Blur
The headline change is HUD’s proposal to eliminate the mandatory steel chassis requirement. On paper, it sounds progressive: remove an outdated, expensive component and let manufacturers innovate. But let’s look closer.
The chassis isn’t just a piece of steel — it’s a defining feature that distinguishes HUD-code homes from modular homes built to state or local codes. By removing it, we risk blurring critical lines between manufactured and modular housing.
Trust and Value at Stake
Consumers, regulators, and lenders have spent years learning to trust modular homes as real property, built to the same codes as site-built houses and often indistinguishable in quality. Modular homes appreciate in value, can be financed like traditional homes, and meet rigorous local standards.
If manufactured homes suddenly look and feel more like modular — but without the same building code rigor — public confidence could erode, and lenders might hesitate.
Financing: The Double-Edged Sword
Another concern: HUD’s push to develop a robust secondary lending market for manufactured homes. While improving financing access is a worthy goal, it could incentivize an influx of lower-quality, faster-built products that undercut modular builders on price but fail to deliver comparable longevity or safety.
Imagine a homeowner choosing a new “modular-like” manufactured home solely because it’s cheaper and easier to finance, not understanding the long-term differences in value, energy efficiency, or resale potential.
Public Land, Quick Fixes, and Long-Term Costs
Furthermore, by streamlining FHA’s Title I and Title II programs and using public land for manufactured housing, HUD could inadvertently divert resources and attention from more durable solutions like modular and high-quality site-built homes.
Cities and states might be tempted to approve large clusters of manufactured units on public parcels simply to hit affordability targets faster, rather than investing in mixed-income, permanent housing that strengthens neighborhoods over generations.
A Threat to Perception and Progress
This overhaul also threatens to deepen the perception gap. Modular construction has worked tirelessly to prove itself as a premium, permanent solution — not a “mobile home on a foundation.”
If new manufactured units, built without a chassis, start competing in the same market, buyers may question whether a modular home is truly worth the higher price. Developers, seeing lower costs on paper, might pivot to HUD-code homes, leaving modular builders fighting a steeper uphill battle.
We Need Thoughtful Solutions, Not Just Fast Ones
As an industry advocate, I believe in choice. Manufactured, modular, and site-built homes all have a place. But reforms must be thoughtful, transparent, and honest about their implications. HUD’s goals are admirable: affordability, access, and speed. However, we must not sacrifice quality, long-term value, or public trust in the process.
Let’s be clear: America needs solutions to its housing crisis, but they need to be solutions that last — homes that build communities, generate equity, and stand the test of time. We shouldn’t allow a well-intentioned overhaul to inadvertently set back decades of progress made by modular and site-built housing advocates.
Before we start tearing down old rules, let’s make sure we aren’t also tearing down the pillars that hold up strong, permanent housing.
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With over 8,000 published articles on modular and offsite construction, Gary Fleisher remains one of the most trusted voices in the industry.
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