US federal housing regulation reform

Following the passage of the 21st Century ROAD to Housing Act, U.S. federal agencies have begun implementing measures to reform housing regulations and construction standards.

Initially, the Department of Housing and Urban Development (HUD) and the Department of Agriculture (USDA) signed a memorandum of understanding to streamline environmental reviews and physical inspection standards for housing. This effort, mandated by the Streamlining Rural Housing Act, requires the agencies to submit recommendations to Congress within one year. Concurrently, lawmakers have proposed further legislative measures, such as “Right to Build Zones,” to reduce construction delays and overcome local zoning constraints.

To address the removal of the requirement for manufactured homes to possess a permanent chassis, HUD released the ‘Next Generation Manufactured Housing Action Plan’ to modernize federal construction codes. Industry experts note that the previous chassis requirement could add as much as $10,000 to the cost of a new unit. The new framework aims to support innovation in multi-story, high-density, and multifamily construction to address affordable housing shortages.

The action plan outlines seven specific steps, including updating energy efficiency standards and revising structural design, transportation, and lifting requirements to accommodate chassis-free construction. While the plan signals the start of the implementation process, industry leaders suggest it may take at least a year for these regulatory changes to fully impact the market. HUD has also engaged the National Institute of Building Sciences to conduct a 12-month study on factory-built multifamily construction.