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Kathielly Soto

Kathielly Soto

A Game Changer for Affordable Housing: HUD Updates Manufactured Home Standards

HUD’s first major update to manufactured housing standards in over 30 years modernizes homes with innovative designs and expands affordable housing options across the country.

September 23, 2024

A Game Changer for Affordable Housing: HUD Updates Manufactured Home Standards
Photo by Pavel Danilyuk

In a historic move, the Department of Housing and Urban Development (HUD) has introduced the first significant updates to manufactured housing construction and safety standards in over 30 years. These changes are set to modernize manufactured homes, making them a more appealing and affordable option for Americans, while also addressing the nation’s housing shortage.

The Largest Update in Three Decades: What’s New?

For the first time in over 30 years, HUD has made sweeping changes to its manufactured housing construction and safety standards, marking a pivotal shift in the industry. The updates, a total of 90 revisions, cover everything from roof designs and open floor plans to energy-efficient appliances, bringing manufactured homes in line with the expectations of today’s homebuyers.

These updates don’t just stop at cosmetic changes. The new standards also allow for the construction of up to four-unit manufactured homes, offering more options for multi-family housing—an important shift for those seeking affordable alternatives to traditional site-built homes.

HUD’s Assistant Secretary for Housing, Julia Gordon, highlighted the significance of these changes: “The updates will provide buyers with innovative designs that are safer, modern, and comparable to site-built homes.”

Boosting Affordable Housing Supply Amid a Crisis

HUD Acting Secretary Adrianne Todman emphasized the importance of manufactured homes as a solution to the country’s housing affordability crisis. “This update of the HUD Code is long overdue and will help increase production while ensuring modern designs that suit the needs of families,” Todman said.

With the current housing market stretched thin, these changes come at a crucial time. The agency aims to increase the production of manufactured homes, which are often a more attainable homeownership option for low- and middle-income Americans. By making these homes more competitive with traditional site-built homes, HUD hopes to foster broader consumer acceptance of this affordable housing alternative.

Immediate Industry Impact: Faster Construction, Lower Costs

To speed up the implementation of these new standards, HUD has issued an "Alternative Construction Letter." This allows manufacturers to start building multi-unit manufactured homes immediately without waiting for full approval. This move will reduce the operational complexity for manufacturers, streamline the process, and bring new affordable homes to the market faster.

According to Julia Gordon, this alignment with current construction standards will help reduce delays and encourage the production of safer and more modern homes.

Industry Support and Concerns

The Manufactured Housing Institute (MHI), a major industry group, welcomed the changes, calling them a long-overdue step toward modernization. Lesli Gooch, MHI’s Chief Executive, praised the updates, saying they would help deliver homes with innovative designs and modern features, expanding homeownership opportunities for many Americans.

However, MHI raised concerns about the tight 180-day deadline for implementing these substantial changes, urging HUD to offer more regular updates to the code in the future. The industry group emphasized the need for smoother, more frequent revisions to prevent long delays in future housing development.

A Future-Focused Approach to Manufactured Housing

These changes follow HUD’s recent efforts to promote manufactured housing as a viable solution to the housing affordability crisis. In June, the department launched a loan program aimed at supporting the purchase, refinancing, or renovation of manufactured housing communities. With these new construction standards, HUD is taking another critical step toward making affordable housing more accessible to millions of Americans.

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