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Market Watch

HUD updates lower housing costs regulations

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Market Watch
Monday, September 23, 2024

The U.S. Department of Housing and Urban Development (HUD) recently announced the most extensive update to the Manufactured Home Construction and Safety Standards in more than three decades, including 90 new or updated standards to increase innovation and production of homes with features that are sought-after by consumers, such as open floor plans and accessibility enhancements, and specifications for attics, HUD announced in a release.

The updates to what is commonly referred to as the HUD Code will expedite the home production process by cutting red tape and eliminating the need for manufacturers to obtain alternative construction approvals for materials that already meet or exceed HUD standards — helping build more manufactured homes that will lower housing costs for American families.

For example, the final rule enables multi-unit single family manufactured homes to be built under the HUD Code for the first time, extending the cost-saving benefits of manufactured housing to denser urban and suburban infill contexts.

“Manufactured homes are an affordable housing option for Americans across the country,” HUD Acting Secretary Adrianne Todman said in the release. “This update of the HUD Code is long overdue and will help increase production while also ensuring modern designs to suit the needs of families.”

HUD’s Office of Manufactured Housing Programs also issued an industry-wide Alternative Construction Letter that provides the terms and conditions for manufacturers to gain approval of designs and build multi-unit manufactured homes immediately, rather than waiting six months for the standards contained in the final rule to become effective. The updates enact a significant number of recommendations made by the federally mandated Manufactured Housing Consensus Committee.

“The changes to the HUD Code we’ve finalized today will expand the choices among manufactured homes available for the nation’s homebuyers, while increasing the production and availability of innovative manufactured home designs that are safer, modern, and comparable to site-built homes,” Gordon said. “These updates will bring the HUD Code in alignment with today’s construction standards and reduce operational complexity for manufacturers.”

Key additions and updates included in the final rule now allow:

  • Up to four unit manufactured homes: Changes to regulatory language allow single-family manufactured homes to offer up to four dwelling units while ensuring comprehensive fire safety to occupants by adding benchmarks and guidelines that meet Manufactured Housing Construction and Safety standards.
  • Open floor plans, truss designs, and specifications for attics: The updated requirements for exterior door separation and structural design enable open floorplans that maintain fire safety, clarify unclear provisions, and enable optimization of truss design. In addition, the final rule includes more clarity regarding structural design requirements for attics.
  • Ridge roof designs: Revised definitions and regulatory language allow certain specified roof ridge designs (peak cap and peak flip roof assemblies) without a requirement for specific on-site inspections by a HUD-approved agency, except for certain exclusions. This type of roof installation is common through the industry and uses technology that is time-tested. This update is beneficial for manufacturers and consumers by incorporating more recent design practices into the regulations and eliminating unnecessary inspections and associated costs.
  • Materials that facilitate modern design approaches and improve quality: Updates to reference standards for materials (wood, steel, piping) and products align with other building standards, allow the use of more modern design approaches and installation of alternative materials, and improve the quality and safety of homes for consumers.
  • Accessibility improvements: Modifications to standards for accessible showers comply with national disability standards for roll in showers. This eliminates the need for HUD alternative construction approval and reduce cost and burdens for manufacturers and consumers.

Modern and energy-saving appliances: Updated and newly added standards allow for the use of more modern and energy efficient appliances, including gas-fired tankless water heaters, eliminating the need for HUD alternative construction approvals for use of such appliances.

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