On Friday, the U.S. Department of Housing and Urban Development (HUD) published a document with a proposed rule aimed at spurring more multi-story manufactured housing supply.
The rule would expand the definition of a manufactured home and support multi-story manufactured housing construction. It would further permit upper-level sections to be transported and assembled without a permanent chassis.
By supporting multi-story construction, the proposed definition would provide manufacturers with more design flexibility, which could expand housing options and lower production expenses, HUD argues.
This proposed rule, if enacted, would complement a provision in the U.S. House of Representatives’ revised 21st Century ROAD to Housing Act that would eliminate the permanent chassis requirement for manufactured housing.
A steel chassis can cost anywhere from $5,000 to $10,000. Eliminating that expense could significantly reduce the cost burden for manufactured housing.
Congress originally instituted the permanent steel chassis mandate as part of the National Manufactured Housing Construction and Safety Standards Act of 1974. The requirement was originally intended to provide structural support and safety during transportation, but housing advocates argue that the permanent requirement is a costly addition that is typically unnecessary after a home is delivered.
Reporting from Pew found that only 5% to 7% of manufactured homes are moved once they are delivered, indicating that the permanent chassis requirement isn’t necessary for the overwhelming majority of units.
“For the purposes of a manufactured home, the term “chassis” means the entire transportation system comprising the drawbar and coupling mechanism, frame, running gear assembly, and lights. A chassis is defined in the regulations…as the entire transportation system comprising the following subsystems: drawbar and coupling mechanism, frame, running gear assembly, and lights,” the HUD document noted.
A piece of the affordable housing puzzle
About 7.2 million U.S. households live in manufactured housing units, representing 5.4% of the nation’s occupied housing stock. However, new manufactured home production is down substantially from peak levels seen in the 1970s, and many Americans have negative — and often outdated — perceptions about manufactured communities.
Still, at a time when housing is out of reach for so many Americans, manufactured housing is increasingly viewed as one of many solutions to the nation’s affordability gap.
According to the Manufactured Housing Institute, new manufactured homes sell for less than a third of the price of site-built homes.
HUD Secretary Scott Turner agrees that manufactured housing can play a key role in the nation’s housing supply.
“America needs more housing, and manufactured housing is part of the solution,” Turner said in an announcement. “We are removing unnecessary barriers, encouraging innovation and helping American manufacturers deliver more affordable housing options for American families.
